Costs of Identity Theft Protection Services

"Generally I think it's a good concept, but I think the prices are exorbitant," said Evan Hendricks, who publishes the Privacy Times newsletter and recently released a book about the credit system. "They are taking advantage of the fear of the fastest-growing crime."

Some credit experts also complain that ID-theft protection services are being offered by companies that could do more to stop the problem in the first place. Consumer advocates say credit card companies make it too easy to open accounts, offering "instant credit" and mailing out reams of preapproved applications. The critics also blame credit bureaus for not catching discrepancies in information submitted by fraudsters.