How does identity theft typically occur?

Identity theft typically occurs when personal information is used without permission. In this scenario, an unauthorized individual gains access to sensitive data, such as social security numbers, bank account information, or credit card details, often through various methods like phishing, hacking, or social engineering. Once they have this information, they can impersonate the victim, leading to fraudulent activities like opening new accounts or making purchases in the victim's name.

The other options touch on security concepts but do not capture the essence of identity theft. Using encrypted information, for example, is a security measure designed to protect data, and accessing secure databases usually refers to legitimate access under appropriate conditions, not identity theft. Accidental data sharing might lead to exposure of information, but it does not specifically address the deliberate intent behind identity theft. The critical factor in identity theft is the unauthorized use of a person's private data.