Which of the following best defines 'identity crime'?

The definition of 'identity crime' is best captured by the misuse of identity for illicit activities. This encompasses a wide range of criminal acts where an individual's personal information, such as name, social security number, or financial details, is exploited without their consent for fraudulent purposes. This misuse can lead to various crimes, including financial fraud, credit card fraud, and more serious offenses, all of which are rooted in the unauthorized use of someone's identity.

While protecting personal information and ensuring the security of passwords are important aspects of preventing identity crime, they do not define the crime itself. The mere loss of physical identification cards or passwords does not constitute identity crime unless they are used by someone else for illicit purposes. Thus, the correct answer highlights the active and illicit use of someone else's identity, which accurately reflects the nature of identity crime as a serious offense in today's digital and interconnected world.