What is the best way to protect your identity?

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Identity theft is so rampant at recent years. Many people lost thousands of dollars due to identity theft. Criminals can access your account through many different ways. They can stole your account number and password through those skimmers at ATM machine; they can stole your sensitive information through your mail; and much more complicated methods I may not know of. Due to the advance of technology, we might do most of our banking activities through internet. With convenience, there is also a flaw for this system. Key loggers, or those scam mail might "gotcha" within a second. So, probably the best way to protect yourself if someone can steal your identity and pretend to you, is to freeze your credit. Those online promotion of credit monitoring, or credit alert, might not do their effects on deter those criminals. Do you have better suggestion?