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How to protect your online identity You can protect your online identity by making a username and password. Why is it important to protect your online identity? It is important because bad people can steal your identity. And use it against by using your name as a Faust name to order stuff off line. And it would be charge against you. And they can find where you live and rob you. Also they can go into your bank account and take your money .And might take ever thing you own.And remember to log out. So protect your online identity because you never know who online.