Identity theft costs us billions of dollars a year and countless nightmarish headaches, who have become victims.  We all know we have to be diligent about protecting our financial history. But what about the companies that say that if you pay them hundreds of dollar...they will do it for you? Are they worth the hefty fee for possible peace of mind?

But when Consumer Federation of America (CFA) studied the websites of 16 for-profit identity theft services, it found that the descriptions of how they help consumers are often confusing, unclear, and ambiguous. Furthermore, these services may not always offer the protection that consumers are led to believe they will get.

In a recent release called: "To catch a thief: Are identity theft services worth the cost?" Susan Grant, CFA Director of Consumer Protection and author of the report says: "Some of these services may be helpful to consumers, but none can absolutely prevent your personal information from being stolen or used."

Many of the benefits that these services advertise are things that consumers can do on their own for free or at minimal cost. CFA encourages consumers to follow Ten Easy Steps to Protect Your Personal Information and Detect Fraud, which are described in more detail in Appendix A of the report:

1.   Practice mail security.

2.   Guard your Social Security number.

3.   Lock and shred.

4.   Stop prescreened credit and insurance mailings.

5.   Keep private information to yourself.

6.   Be safe online.

7.   Look at your bills and bank statements promptly.

8.   Monitor your accounts online frequently.

9.   Check your credit reports regularly.

10.  Pay attention to debt collectors.

View a copy of the report.