How can identity theft impact consumers?

Identity theft significantly impacts consumers by allowing perpetrators to open unauthorized credit accounts in the victim's name. When someone steals another person's identity, they can potentially access financial resources, accumulate debt, and create a financial history that does not belong to them.

This form of fraud can lead to serious repercussions for the victim, including damaged credit scores, financial loss, and the challenges of rectifying their credit history. The unauthorized accounts can appear on a consumer's credit report, making it difficult for them to obtain new credit or loans, as lenders often rely on credit assessments. Additionally, victims of identity theft may face extensive legal and administrative hurdles to clear their names and restore their creditworthiness.

The other choices mistakenly portray identity theft in a positive light or minimize its impact, failing to recognize the extensive damage it can cause to a consumer's financial health and rights.