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Identity theft occurs when someone uses another's personally identifying information, like their name, identifying number, or credit card number, without their permission, to commit fraud or other crimes. "Determining the link between data breaches and identity theft is challenging, primarily because identity theft victims often do not know how their personal information was obtained," and identity theft is not always detectable by the individual victims, according to a report done for the FTC.

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The report also warned that "the full extent is unknown".

A later unpublished study by Carnegie Mellon University noted that "Most often, the causes of identity theft is not known," but reported that someone else concluded that "the probability of becoming a victim to identity theft as a result of a data breach is ... More recently, an association of consumer data companies noted that one of the largest data breaches ever, accounting for over four million records, resulted in only about 1,800 instances of identity theft, according to the company whose systems were breached.

There are cases of identity cloning to attack payment systems, including online credit card processing and medical insurance.

In this situation, the identity thief impersonates someone else in order to conceal their own true identity.

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