To reduce identity theft, stop the use of Social Security numbers for identification other than to the Social Security Administration. Each individual business or corporation to come up with their own system to identify people/customers.
Why is this important?
I think it's should be illegal for companies to require individuals to use their social security numbers for identification. I believe it would reduce the identity theft if these numbers had no use other than the original purpose to identify you to the Social Security Administration. Every action Americans take (including verifying themselves to local businesses) includes use of their social security number or a portion of it.