I think there's a real answer for identity theft:

Whenever someone applies for credit, make them be photographed and 
fingerprinted.  Nobody would be so stupid as to walk into the bank office and have a 
picture taken if they were committing a felony.

This reduces the problem to misappropriated existing accounts at least.

I never saw how useful the validation number could be; presumably anywhere 
the 16-figure number can be stolen from, the 3-figure one can too.
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