The simplest solution to identity theft involving financial fraud is to lock your credit records. These will prevent ANYONE (including you) from obtaining credit in your name. Unless you open a new department store charge-card on a weekly basis, most folks don't need open credit records. Your existing lines of credit will still work, and if you want to obtain a new credit card or take a home or car loan, you simply unlock your records temporarily.

This would not prevent someone from using your name and SSN to get a job or commit a crime (ie illegal aliens) but it will protect your finances.