The proliferation of digital technologies has sparked a sociotechnical revolution that has fundamentally reorganized the structures of human identity and interpersonal relationships. While digital profiles were first introduced as safe havens of social networking information, their use has been extended to become highly detailed “datafied identities,” including personal details such as biometric characteristics, geo-location information, profession, and behavior. They are therefore extremely profitable targets of crime because of the amount of personal data that they provide. This research paper provides a thorough socio-legal, criminological, and comparative investigation of the connection between the abuse of digital identity and actual crime. The environmental criminology theories of Cyber-Routine Activity Theory (CRAT) and Space Transition Theory are applied to explain how structural anonymity and geographical dissociation create opportunities for tangible damage, from economic crime to cyber-stalking and violent attacks. The research investigates the change in the legislative architecture in India from the colonial-era criminal code to the Bharatiya Nyaya Sanhita (BNS) 2023; evidence laws outlined in the Bharatiya Sakshya Adhiniyam (BSA) 2023; and data governance regulations under the Digital Personal Data Protection (DPDP) Act 2023 and its implementation rules in 2025. In addition, the paper discusses the rising challenge posed by generative artificial intelligence (GenAI) and deep-fakes, analyzing the effectiveness of the amendments made to the Information Technology Rules in 2025 and 2026 concerning the regulation of “Synthetically Generated Information” (SGI). Using a comparative jurisprudence framework considering the European Union, the United States, and the United Kingdom, this paper examines important structural weaknesses in current enforcement practices, discusses the development of personality rights, and proposes a preventive approach to legal intervention using technology.