Identity theft has been around since the days where people would steal checking account statements out of a mailbox or someone's driver's license or credit card. The victim could suffer financial damage, not to mention significant inconvenience, to be sure. However, with so much of our business and personal activity now done online, the potential loss, and therefore the penalties, are much greater.
While identity theft is a federal crime, it's also a state crime. Here in Oregon, a conviction for identity theft is an automatic Class C felony. It carries a "presumptive sentence" of 13 months in prison. However, that sentence can be longer for those who have previous identity theft convictions. It may also be extended if credit card fraud, forgery or a computer crime was involved.