Peter had his credit cards stolen. Leo says it's a very common thing. The good news is that in the US, the banks take all the liability, and this Fall, a new credit card will come out with chips and PIN numbers to guard against theft. Another option is to sign up for one time use credit card numbers, or numbers that can be used with just one merchant.
Is there a good identitity protection service? Leo says identity theft doesn't happen when you get your charge card stolen, its' when you get your social security number and other personal information stolen. That makes it very hard to undo. Service wise, though, LifeLock is a great way to go. Leo uses them. They use deep analysis to identify problems and fraud.
Leo also recommends that everyone get a free credit card report from all three agencies every year. What about FreeCreditReport.com? Unfortunately, it's not really free.
Peter can also put a lock on his account every year for free and that prevents being issued credit cards for a whole year. Here's how - http://www.clarkhoward.com/credit-freeze-and-thaw-guide.