AVG Identity Protection is an anti-malware product that will protect you from all kinds of malware like Spyware, Bots, Identity Theft using behavioral technologies. It also provides zero day protection
for new viruses. Identity Protection verifies the behavior of
applications and if there is suspicious action detected (this means e.g.
when file copies itself to system folder, writes data into another
files and creates registry entries, gathers important data and saves
them to a specific file or uploads them to the Internet...), you will
get notified. Identity Protection can detect malware without any
database updates and therefore may provide better protection than
anti-virus applications in specific cases (when blocking newly spreading
malware).
On the other hand, IDP will not be able to detect infected file that
is only present in your computer and does not perform any actions (e.g.
is only stored and not running at all). Such file must be detected and
healed by Anti-Virus scan.
AntiVirus product will protect you from known viruses
using signature mechanism or basic heuristic analysis. Most of them are
scan based and will scan your computer for any known threats coming to
your computer.
We strongly recommend you have the both products installed, in order to have complete protection for your PC.