What is theft of confidential information typically used for?

Theft of confidential information is commonly used for committing identity fraud through unauthorized loans. When personal details such as Social Security numbers, bank account information, or other sensitive data are stolen, they can be utilized by fraudsters to impersonate individuals. This impersonation allows them to take out loans in the name of the victim, which the victim will ultimately be held responsible for, leading to severe financial and legal ramifications.

This method is particularly insidious because it can go undetected for an extended period, during which the illegitimate loans accrue interest and damage the victim's credit score. Knowing how critical personal information is for financial transactions, criminals target it specifically for schemes that exploit financial institutions and individuals alike.

Other options such as altering public records, creating fake employee accounts, or winning fictitious contests involve different tactics and do not typically hinge on the direct theft and use of personal confidential information in the same widespread manner as seen in identity fraud. Each of these alternatives has its own specific motivations and methods that are distinct from the direct financial exploitation made possible by stealing confidential data for unauthorized loans.