Identity theft is happening everywhere. Data from retail stores,hotels, banks and other businesses are being stolen and misused—anddata theft scams are likely to increase as the holiday seasonapproaches, according to the Insurance Information Institute.

Identity fraud is on the rise for the second year in a row,affecting more than 13 million consumers in 2013, according to theFederal Trade Commission.Consumers suffered total fraud losses of more $18 billion,averaging $2,294 per incident, and more than 11 hours trying toresolve the average case.

October is NationalCyber Security Awareness Month, a reminder for consumers toreview their bank statements and credit card bills to confirm thatall the transactions listed are legitimate. Individuals should alsobe vigilant when using their smartphones, tablets and other devicesthat store personal information digitally.

Most homeowners and renters policies provide coverage for theftof money or credit cards; however, the amount of coverage islimited—usually $200 in cash and $50 on each credit card. Once youhave reported the loss or theft of your credit card to the issuingcompany, you are responsible for only $50 of unauthorized use.

Some insurers include coverage for identity theft as part oftheir homeowners insurance policies. Other companies sell morecomprehensive coverage as a stand-alone policy or as an endorsementto a homeowners or renters insurance policy.

Identity theft insurance provides reimbursement to crime victimsfor the cost of restoring their identity and repairing creditreports. It generally covers expenses such as phone bills, lostwages, notary and certified mailing costs, fees when reapplying forloans, grants or other credit instruments and sometimes attorneyfees (with the prior consent of the insurer).

Some companies also offer restoration or resolution services toguide you through the process of recovering your identity, whichcan include working with credit card companies, credit bureaus,creditors and businesses on your behalf to correct any coveredidentify fraud issues. Identity theft insurance will reimburse apolicyholder for expenses incurred to restore his or her identity,up to the limits stated in the policy. Coverage limits can rangefrom $10,000 to $1 million.

To help protect your identity, the I.I.I. offers the followingdetailedtips.

If you believe you have been victimized, report the crimeimmediately to the credit card issuer and police. Ask for a copy ofthe police report. You will need it if you want to file aninsurance claim or report the crime to the FTC for theirassistance. Victims of identity fraud can call the Federal TradeCommission at 877-IDTHEFT.