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Blagging carries two meanings, one colloquial and one legal.
It basically means to fool someone into thinking you are something or someone you are not. It can have a wider meaning: so for instance, if I haven't done the amount of things I claim to have done, I might blag my way through an interview. If I haven't done any revision or study and am making it up as I go along in an exam I could say I blagged it.
In legal terms it is more precise, it is about assuming a fake identity and using that fake identity to acquire information that you have no legal right to, such as someone else's private bank account details, or employment records, or health updates.
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