There's no such thing as identity theft. Individual companies can be defrauded when they don't do sufficient checks. The companies that do sufficient checks don't get defrauded. You can't prevent someone else's incompetence.

As for being subject to prosecution for crimes that you didn't commit, you can either live in a jurisdiction where the justice system works more effectively, or else be rich and have a good lawyer.

For your amusement/future-utility, the Mitchell & Webb audio skit captures it pretty well: https://www.youtube.com/watch?v=CS9ptA3Ya9E