From a newsletter I get. Sorry can't link back as it is my in box.

Identities Sold at Internet Auctions: The Latest ID Theft Scam
Whether you realize it or not, your identity is one of your most valuable assets. But are you aware that thieves are buying complete identities — including names, Social Security numbers, addresses, dates of birth, functioning credit card numbers and more — for as little as two dollars? Underground online auctions for credit card numbers, bank account numbers and other personal information have increased exponentially* in the past two years. This escalation has allowed identity thieves to buy personal information in bulk, putting more and more people at risk of identity theft.

The worst part is that most people don’t even know these types of online auctions exist. By understanding how these auctions work and how people’s personal information is obtained, you can take steps to protect against identity thieves getting credit in your name. What costs a thief two dollars for your identity could cost you thousands of dollars.

According to the FBI and the National White Collar Crime Center, 2007 saw Americans report losses of $239 million as a result of online fraud, with average losses running around $2,530++. As identity thieves become savvier, some have recruited hackers to defraud consumers of personal information, such as credit or debit cards, Social Security numbers, etc. The stolen data is usually sold through instant-message groups or online forums that last only hours or days, to avoid being tracked by authorities.

These ever-evolving identity theft techniques mean that your identity could be vulnerable at any time — not just if you’ve had your wallet stolen, as some may think. Be sure to take necessary precautions when shopping or banking online to make sure that sites requiring personal information are legitimate and secure.

One of the heinous things about identity theft is how the government and financial businesses treat it.
Evidently, it's the consumer's responsibility to ensure that a business doesn't give somebody who is not you a credit card, and then wracks up incredible debt against your name.
And when that does happen, it's your responsibility to undergo red tape and logistical obstacle course to get both your credit record and the idiot business corrected.
Quite frankly, I think it should be the responsibility of the idiot business as THEY are the ones improperly tarnishing your credit history.

There was a news article I read the other day about a mother of a young boy (less than 10 years) who received a credit card application.
On a lark, she had her kid fill it out. ACCURATELY. Including his "income" (nothing), AGE, etc, etc...
Kid got a credit card.

Part of the problem is that the credit card industry is too ridiculously willing to hand these things out, even to people who they obviously shouldn't.
And why shouldn't they (from an amoral stand-point) when the system is stacked in their favor?