AVG has upgraded both its free and paid-for security software packages and is also offering protection against identity theft.

CIFAS, the UK’s fraud prevention service, estimates that identity theft is costing the country’s economy more than $3.4bn (£2.4bn) annually. AVG's Identity Protection (IDP) is specifically focused on helping prevent thieves from using carefully targeted attacks to steal passwords, bank account details, credit card numbers and other digital valuables.

It uses a technology called behavioural analysis that the company inherited when it bought Sana Security earlier this year. The software makes sure all the programs running on a user’s computer are operating the way they should.

If it spots something suspicious that could indicate an attempted ID theft attack, it shuts that activity down, preventing any possible theft from happening.

AVG has added the protection as standard to the company’s paid-for Internet Security Suite 8.5 package but can be bought as a standalone product for £19.99. The company said it doesn’t matter which security software is being run as it will work alongside popular programs such as Norton or Kaspersky.

The free version of AVG 8.5 has also been upgraded. The company has added Active Safe-Surf, which offers protection against so-called drive-by downloads.

This is one of the most pernicious forms of attack and occurs when hackers ‘seed’ websites, many perfectly legitimate ones, with malware. The Active Safe-Surf software checks for hidden threats when users are about to click on a link. It will then block the site if it finds malware.

The company has also launched a Twitter page so users can get information and updates.