Identity Theft is when your personal identification information (social security number, drivers license, credit card number) is stolen by someone who uses your information to do just about anything. Identity thieves are known for purchasing new homes, applying for car loans, and opening up credit card accounts in the name of another person.
Thieves have emptied out the savings accounts of victims before the victims have even realized a stranger is accessing his or her personal identification information. At its essence, identity theft involves someone trying to impersonate you by using your personal information without your authorization.