You are exactly right. Identity thieves are not out to increase a victim's credit score or personal wealth. They steal others' identities in order to get things without paying for them. It is a hassle for the victim trying to get everything cleared up so they can go about their daily life. Having a terrorist or terror organization steal your identity to create fake passports and other documentation, possibly even bank accounts, is an even scarier thought. Just think of the time and money involved with getting your good name cleared with the Department of Homeland Security and the FBI. A person could even lose their job simply by being accused.
At this time, I watch all of my accounts closely and request my credit reports annually from the three major credit bureaus. I've never had my identity stolen, but my credit history was merged with a neighbor's whose last name was similar to my maiden name. The credit bureau did not pay attention to the fact that our social security numbers weren't even close, just that our first names were the same, one of the last names she had used was close to my last name, and our addresses were nearly identical. I discovered this when trying to obtain credit. I had to call the credit bureaus and the neighbor. IT was a mess, but thankfully, they cleared up the issue within a couple of weeks.