From what i understand panic attacks are easily treated exactly because, as you say, the primary problem is that the person having the attack erroneously confuses the physical symptoms with something more serious. Through cognitive behavioral therapy they can learn to fix this, and as a result the panic attacks disappear (or at least the initial panic doesn't spiral into a full-blown attack). Similar approaches have also been successful in treating phobias and other issues.
For anyone interested in the topic (and CBT in general) I can highly recomment [What You Can Change and What You Can't - The Complete Guide to Successful Self-Improvement](http://www.amazon.com/What-You-Change-Cant-Self-Improvement/...) by Martin Seligman.
As someone who has recently developed a bit of an obsession with mindfulness/zen/meditation, this book is a good example of the parallels between that and the field of psychology.
For anyone interested in the topic (and CBT in general) I can highly recomment [What You Can Change and What You Can't - The Complete Guide to Successful Self-Improvement](http://www.amazon.com/What-You-Change-Cant-Self-Improvement/...) by Martin Seligman.
As someone who has recently developed a bit of an obsession with mindfulness/zen/meditation, this book is a good example of the parallels between that and the field of psychology.