But the silver lining in these dark clouds is that victims are fighting back sooner and limiting the amounts that criminals are stealing thanks to identity theft protection services sold in the worksite market, as well as greater consumer awareness of this crime spree.

The number of ID theft victims in the U.S. soared 22% to 9.9 million adults last year, according to a recent study by Javelin Strategy & Research that suggests crimes tend to increase when the economy worsens. Still, the cost per incident, including unrecovered losses and legal fees, fell 31% to $496 from $718 — its lowest level since 2005. Another positive indicator is that the total annual fraud amount increased by just 7% to $48 billion from $45 billion in the previous report, 20% lower than it was in 2004.

Rachel Kim, an analyst for Javelin Strategy & Research’s risk and fraud practice, believes there will be a growing demand for identity theft protection services, despite hard times, considering how the incidence of fraud rose nearly a full percentage point during the past year to 4.32% from 3.58%. She adds that fierce competition among players that serve this market has driven down prices as low as $24 a year — a small price to pay for peace of mind.

But while she applauds the many “options out there for security concerned consumers who are interested in taking a more proactive approach, it is by no means absolutely the only way to prevent or detect fraud.” Kim suggests that employers can provide general information on ID theft and tips on how to reduce the risk of becoming a victim of this crime. They also can consider offering a one-year subscription to ID theft services at a discounted price to test the waters.

Javelin, a leading independent provider of quantitative and qualitative research focused exclusively on financial services topics, has been conducting the nation’s longest-running study of identity fraud, with 24,000 people polled over the past five years.