It does seem as though we should be able to circumvent ID theft by now. Isn't there a way to reset all crucial data? It does seem as though the government should be able to make it possible for a victim to recover from this.

We are all creatures of habit. Another safeguard against identity theft would be if credit card companies and banks, using our own spending profiles stored in their databases, triggered an alert for extra scrutiny when an unusual transaction is being requested. Several months ago, I received an automated phone call from a financial institution using these precautions. The call described the transaction they were skeptical about. They asked me to call an 800 number to verify the transaction or deny the charge. A recording answered, asked me a few questions, and offered the option to speak to a human if necessary. The entire process was very quick and painless, and actually reassuring. For once, I felt that the usually annoying voice systems was a real asset. Perhaps we could even tell the banks or credit card companies what kind of transactions to question on our behalf.

This is an excellent concept that you have developed there to prevent Identity Theft. As a former senior auditor of a national bank and a professional software developer with 3 decades of experience I appreciate the completeness of your approach to security. It has been found that often the weakest point in security is at the software application layer. You have the right estimation of effort and the right path to addressing the problem.

I certainly have mixed feelings about this. While I understand completely the risks of this crime, I am not at ease with the notion of a governmental national ID card or any of the tracking they may sneak into it. New passports in the US clearly have tracking chips in them already, and the current government is far from trustworthy. I just don't see how any remnant of privacy can exist in a centralized system.

But the problem has to be addressed somehow. I was teaching in a healthcare program and one of the MD's on staff got a call at lunch one day from a local hospital asking her to pay her rather huge outstanding bill. She had never been a patient there and at our urging asked to have a fax of the ID that had been presented sent to her. It was a very real looking driver's license with her name, address and everything except the picture correct. She sent back a copy of her real license and the school sent a verification file with her other identification, med school diploma and passport pictures.

Then she had to go through the whole police report, bank report and on and on. The imposter was caught on their next hospital visit and arrested, but it took more than three years to straighten out her credit reports. She was from another country originally and had never even heard of identity theft until we explained it to her.

Still, how would your proposal protect privacy, if at all?

I knew a man who had his identity stolen once. Though the perpetrator had done nothing as far as lending went, he did withdraw large sums of money from the bank. What really had us worried, however, was that he was committing other crimes under his new identity - nobody knew.

I had my identity stolen in 1999. I was pickpocketed, noticed within minutes of it happening, and immediately closed all my credit cards and notified my bank. I had never heard of the 3 U.S. credit reporting bureaus (Experian, TransUnion, Equifax). Back then, identity theft wasn't in the news, and you couldn't even get your credit score if you wanted.

Then in 2000, I have moved to California, and joined a Credit Union and tried to get a credit card. Answer? Sorry, you have 3 credit collection agencies after you.

Turns out, my Red Cross blood donor card in my wallet had my social security number on it. The thieves opened up multiple phone accounts in my name, and ran up thousands of dollars of calls on it. The phone company refused to talk to me since they had already sold my account to these collection agencies. They had no explanation why they would open up multiple phone accounts in my name even though I had one valid account with them already. You'd think they'd call you at the original account to confirm. But no.

It took me 6 months of almost daily work on repairing the problem. I even had to fly back to Chicago to fill out a police report. Everyone treated me like I was the criminal, trying to play the system. It was absolute misery, very stressful, and quite expensive.

I now have learned my lesson --- I generally refuse to give up my social security number. I keep a vigilant eye on my credit reports. When I get phone services, I request from the phone company that my account can not be changed or added to without confirmation from me in writing. (They are set up to do this, to prevent slamming.)

If this ever happens to you, you have to be aggressive, vigilant, knowledgeable, and your own best champion.

I also lived in the UK for 3 years, and I was so shocked and impressed at how much more secure the banking system was. It took me ages to finally be allowed to open a bank account. (You need a bank account to get an apartment, but you need proof of your apartment to get a bank account.)

Although the loss of this data is inexcusable (why in the world would 1/2 the nation's population need to be carried around???!), I hope it didn't fall into nefarious hands.

I was a victim of identity theft, my debit card number was stolen. Online purchases were made but I was able to get my money back from my bank as there were red flags. This was great it sucked at first but if you have a good bank then I think it is not as bad as it could be. I am sure it has been worse for some but my personal experience was not bad.