In what is a sign of the times, at least two local financial services companies have begun offering free identity theft recovery services as a way to attract new accounts and retain existing customers.

American Savings Bank last month began offering the service to all of its checking account customers, while Island Insurance Co. added the service as part of its homeowner's policies.

Both companies said they realized identity theft is a growing crime in Hawai'i and wanted to offer customers help if they were victimized. Identity theft victims can spend hours untangling bills rung up by thieves, and sometimes discover someone else has taken out credit card accounts and loans in their name.

Identity theft has been happening for years as thieves continue to find new ways to use the Internet, telephones and other technology to steal personal information and use it to charge purchases or get credit cards. In recent months, some Hawai'i residents received dozens of e-mails purporting to be from their credit union. In reality they were an attempt to gain sensitive information such as Social Security numbers and birth dates.

"We don't want this to happen to anybody," said Todd Yamanaka, vice president of Ho-nolulu-based Island Insurance. "But this will help them."

Yamanaka said it typically takes people 20 days to clean up problems after identity thefts. The service should help cut that time, he said. The insurance company already had offered reimbursements, after taking deductibles into account, for victims' costs incurred in trying to recover their identity.

Programs offered by Island Insurance and American Savings are similar in many ways and are offered with the help of Mainland companies that specialize in helping victims. People who discover they are a victim of an identity thief get a number to call and are assigned to someone who will help them notify credit card companies and ratings agencies.

They also can help people file police reports and set up alerts so victims are contacted when anyone makes a credit inquiry using their name.

"We know there's a need out there because this is a rising crime," said Bruce Rosen, general manager of Bishop Insurance, a unit of American Savings. He said the offering is something that may be duplicated by other financial institutions and that Bishop Insurance is offering its service available to businesses as a possible employee benefit.

So far there's been positive feedback on the bank's program during focus groups, said American Savings spokeswoman Dawn Dunbar. One participant said she had been a victim and might consider switching her checking account to American Savings to get the recovery benefit.

"They were saying it was definitely a feature they'd be interested in," Dunbar said.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.