It started as an evening at a trendy restaurant, but Debra Duneier ended up with a nightmare on her plate when her purse was stolen, along with her identity.

"My reservation was for 7:30. At 7:36 there were charges on my credit card at four different locations at the same time," said Duneier. "In minutes they were spending my money."

Duneier is one of ten million Americans who fall prey to identity theft each year. The total cost to those victims is $5 billion.

The cost to her was $7,000 in less than a month and she had to change banks, cancel accounts and put her credit card companies on alert.

"There actually was someone that got into my new account, went to the teller at a different branch and pulled out $2,000," said Duneier. "They also deposited two checks into my account from stolen checkbooks."

Duneier says since the incident, her mentality has completely changed. She's now more cautious about where she puts her purse and has credit alerts set up on all her accounts.

Sharon Emek is a member of the Independent Insurance Agency Brokers of New York. She says without the right protective steps, your life can become an ugly mess.

"You could end up being forced into bankruptcy," said Emek. "You could end up not being able to get any credit or buy anything for yourself because somebody else is using your name, your Social Security number, taking out mortgages and using your credit cards and not paying the bills!"

Emek says everyone should consider asking their insurance agent about Identity Recovery Services and Specific Identity Theft Insurance on their homeowners or renters' policies.

"You need to ask because some carriers provide a better endorsement," she said. "They might give you a thousand dollars of protection built in, but for $35 they could provide $25,000 of protection."

How do you avoid ID theft? Your best bet is to keep your Social Security number hidden from others, using it as infrequently as possible online. The professionals also recommend checking your credit at least once a year, that way you will immediately see suspicious activity.

And if you do lose your wallet, call your credit card companies immediately and call your insurance agent so they can help you to set up credit warning devices on your accounts.