The carnival surrounding the recent loss -- and subsequent recovery -- of a laptop containing personal information for approximately 27 million veterans and active-duty American soldiers has diverted attention from a more important threat. Incredibly, just when identity theft has blossomed into a national epidemic, Congress is considering legislation that would impair the ability of individuals to protect themselves against this crime and related frauds. Each year, according to the FTC, several million people are victims of identity theft, generating losses estimated in the tens of billions. Strong laws have been passed in many states, including Florida, Utah, New York,...