Question

Federal and state governments protect victims of identity theft by

creating laws that impose fines and jail time for identity thieves.
passing laws requiring financial institutions to reimburse victims.
forcing credit-reporting agencies to notify victims of suspicious activity.
requiring people to do a better job protecting their personal information.

Answer 1

creating laws that impose fines and jail time for identity thieves.

These criminal laws allow prosecutors to punish offenders and deter identity theft (while civil and regulatory rules also give victims some remedies, the primary government protection is criminal penalties).