Since you clearly know the process, can you give some tips on protecting yourself?
You need to assess the risk, taking into account the very low probability of having your identity stolen and the fairly low inconvenience, against the time and effort it takes to take protective measures. Don't live in fear of it.
That said, the single best way to protect yourself from random ID theft is to use a decent bank with good fraud protection. In the UK, Barclays and HSBC are very good, Natwest and Halifax are very bad. Citibank is a bad US one.
If someone steals your ID and drains your bank account it's going to be much harder and more time consuming to get your money back. If someone opens credit cards under your ID it will be easier to correct than losing your bank account but can still be very time consuming. Often people discover the issue when they're applying for new credit, such as a mortgage. Correcting your credit issues can take months to resolve. They could lose a house they're trying to buy if they don't get approved.
and don't put your damn personal information on facebook!
edit: nobody should be so unaware of their own credit record that they lose a house sale because of undiscovered fraud. Keeping on top of it is very cheap and as simple as registering on a website (UK example: https://www.creditexpert.co.uk)
You are now a harder target than most people.
I think that's the most important lesson learned from this tale.