Your credit will be ruined and you will spend months – maybe years – untangling the mess. Fortunately there is a simple and free way to reduce your chances of becoming a victim.

Work with credit agencies

Contact each of the three credit reporting agencies – Experian, Equifax and Transunion and request a fraud alert – or even an extended fraud alert -- on your credit file. This simply means that no one can access your credit file without verifying your identity first.

For example, if someone steals your Social Security number and tries to get a bank loan, the bank would first have to take steps to make sure the person sitting in front of them is who they say they are. That might mean placing a call to you to ask if you are, indeed, trying to take out a loan.

According to the Federal Trade Commission (FTC), an extended fraud alert is free but primarily intended for victims of identity theft and those who believe they are at risk. Today, however, that covers just about everyone.

If you have reason to believe that any of your personal data has been compromised – if your credit card was one of the 40 million exposed in the Target breach, for example – you may be justified in asking for an extended fraud alert on your account. Anyone is eligible for a 90-day fraud alert, which can be renewed.

Where to start

Request fraud alerts here:

• Equifax
• Experian
• Transunion

The FTC advises that you contact each of the credit reporting agencies to place an extended fraud alert, with lasts 7 years instead of 90-days, on your credit file. The company may have you fill out a request form and provide other documentation.

Equifax cautions that a fraud alert, while a powerful tool, will not guarantee a cunning identity thief can't open an account in your name. In particular for an initial fraud alert, a creditor is not required by law to contact you.

“You should also pay close attention to your credit file to make sure that the only credit inquiries or new credit accounts in your file are yours,” the company says on its website. “Other measures may also be warranted depending on your particular situation.”

Credit freeze

A fraud alert is different from a “credit freeze” in one important respect. With a credit freeze, your existing creditors can still get access to your file without your knowledge. It will also not stop misuse of your existing accounts or some other types of identity theft.

To place either a fraud alert or a credit freeze, you will need to provide appropriate proof of your identity, which may include your Social Security Number. If you ask for an extended alert, you may have to provide an identity theft report.

An identity theft report includes a copy of a report you have filed with a federal, state or local law enforcement agency, plus any additional information requested. For more detailed information about the identity theft report.