No one knows my passwords. Why are passwords an identity theft risk?

Stealing your passwords, at work and at home, is the goal of the many online security threats like phishing, malware and spyware.  In an office environment, anyone could step up to a PC and use someone else’s stored passwords.  Techniques can be as simple as looking over your shoulder as you login or rummaging around your desk for sticky notes or passwords lists on paper.  The bottom line is that passwords alone just do not provide enough protection.  They do not protect you as an individual.  They do not protect the organizations you work for.  Nor the thousands of service providers offering data access and services online.  (See also, What is the safest way to access online service?)