When identity theft protection services first became available they were marketed pretty aggressively, and it is perhaps due to these efforts that consumers may have looked past the actual benefit of the offers and gone to dismiss the announcements as yet another product pedaled by financial companies.

With the ongoing threat of identity theft, by now more and more people are starting to pay attention to the possible consequences of identity theft should it happen to them. So they’re probably now wondering, do identity theft protection services really work? Do I really need to spend the money to outsource protecting my identity? There unfortunately isn’t a straight answer to these questions. The needs, lifestyles and risks vary too much.

Identity theft cases are constantly in the news and the incidents vary from city clerks involved in criminal rings that steal identities to parents stealing the identities of their own children. People you do business with and those around you are as much likely to be the thieves as someone half way around the world.

If identity theft is a real concern for you, consider first taking on the task of implementing proactive and continuous efforts to secure your own identity. You can first start by following our own “Identity Theft Prevention Guide”, which is available for free to all our readers. This short guide will provide you with a basic list of things you need to be doing right now to protect your own identity.

The guide will prove that many of the prevention steps an identity theft protection company will do for you, you can do yourself. The difference in the two is the accuracy and effectiveness of their state of the art technology that helps to provide services that no individual can provide for themselves.

If the tasks listed on the guide are more than you can handle, then you need to consider outsourcing the task and this can prove beneficial and effective for your overall protection.

What identity theft protection services do:
•    Monitor credit reports to detect suspicious activities
•    Place and renew fraud alerts on your credit files with all three credit bureaus
•    Monitor online identity black markets
•    Assist when you lose your wallet or purse
•    Remove your name from unwanted mail/marketing lists
•    Opt you out of pre-approved credit offers
•    Provide medical benefits protection (only Trusted ID so far)
•    Extend protection for your family as well (Trusted ID and Identity-Truth)

These and other security features are automated for you so you don’t have to do it yourself. However the biggest benefit of these services besides the peace of mind you get from knowing you’re protected is the insurance policy or service warranty, which can range from $20,000 to $1,000,000 in case your identity does get compromised.

So do these services work? Yes they work, however they’re not 100% safe since identity thieves are becoming more and more resourceful and criminal rings are resorting to unconventional methods of identity theft which include bribing social workers, medical staff and financial clerks. It is best that you have some level of protection that includes a policy that will help you monetarily recover from an incident.

While the current economic conditions cause concern for most people, experts believe that scammers will take this as a chance to exploit the many opportunities created by the economic downturn. Identity theft cases could be on the rise.

Financial Scams – Take for example the banking crisis, ridden with folds, mergers and takeovers and the constant news coverage that keeps consumers on the alert. This gives scammers the opportunity to send out phishing e-mails claiming that personal account information is needed because of the many changes taking place in the banking sector. McAfee, the virus protection company began seeing phishing reports related to the crisis shortly after the failure and sale of Washington Mutual Bank in late September of 2008.

Job Scams – Thieves may also run their scams in the job sectors, with the numbers of companies folding under economic pressure and laying off so many workers. Identity thieves once again will phish for those unsuspecting victims who are hoping to get a call from a job recruiter, with the intention of simply getting the candidates to provide personal information.

Foreclosure/Mortgage Rescue Scams – The number of foreclosures will continue through 2009 and this is another area where scammers will continue to take advantage of desperate home owners who are trying to save their homes from repossession, especially if the home has retained some equity value. Scams in this area may come in the form of mail or even phone calls.

Phony IRS Scams – These scams will almost always occur in the form of email, since it is more difficult for scammers to use regular mail and too risky. The premise of the scam is always the same, you must follow links included in the email to update your records or to sort out a problem in which you owe back taxes. The phishing scams are always made to sound urgent and severe consequences are suggested if immediate action is  not taken.

Credit Debt Consolidation Scams – Once again due to the bad economy, some of us may be inclined to use our credit cards to get us out of tough times, but when the balances begin to grow and payments are not affordable anymore, you may consider consolidating your credit card balances. Many scammers are aware that these are often the opportunities that consumers seek in bad economic times to avoid the high interest rates, and may take the first step in contacting consumers about great consolidation offers that promise to repay their debt for pennies on the dollar.

Whatever approach the identity thieves take, please consider that if you did not request for the information you must proceed with care. Particularly if the offers come to you via email. For more information on email and other online security measures review our related articles.