The states and federal governments are doing nothing to protect your identity from being stolen. They may be making it worse. Back when social security was invented, it was federal law that the social security number could be used by only the Social Security administration. Then it was used by the IRS. Now it is used by everybody. What is really scary is now the IRS is tasked to run Health Care too, using that same old number that everybody knows how to compromise.
Personal identification information is now collected in databases and is accessible in a variety of databases on the internet. The government tells us this is safe and secure, but when the whole database gets stolen, they simply turn to a different online solution to 'fix' it. It is like they have not figured out that it is the fact that it is online that makes it susceptible to being stolen.
Vendors routinely tell us that online financial exchanges are more secure than good old fashioned paper type exchanges. Does anyone know of a single case where multiple millions of pieces of personal information was stolen when it was maintained as paper? Wouldn’t somebody think something was up when they saw a caravan of semi’s coming through to collect the stolen paper? On the other hand, a thief can easily conceal a few moles of electrons that get stolen. (A mole is a REALLY big number by the way, something like 6 or 7 times 10 to the 23rd power or something really big).
Common sense is gone. Government can not provide the solutions, they can only provide more problems.