What constitutes identity theft?

The correct choice highlights that identity theft involves the illegal use of another individual's personal data. This encompasses activities such as obtaining someone's Social Security number, bank account information, or credit card details without their consent. The perpetrators of identity theft use this information to commit fraudulent activities, such as opening accounts in the victim's name, making purchases, or taking out loans, generally leading to financial and reputational harm to the victim.

The other options, while they involve theft or misuse, do not specifically define identity theft. Unauthorized borrowing of funds can pertain to loans or other financial trickeries but does not inherently involve the misuse of personal information. The misuse of public information typically relates to using data that is legally accessible and does not first require identifying or impersonating someone else. Lastly, the stealing of physical property pertains to tangible items and does not involve personal data or information, which is the core aspect of identity theft.