Data breaches are like the trapdoor of modern life. Every retail transaction that requires our credit or banking account information puts our personal information in a database that is as protected as possible – until a hacker breaks in. Then any of us, without warning, can fall into the clutches of identity theft.

Serious breaches have hit major retailers, a global credit bureau and pretty much every other type of entity. Facebook, in fact, just this year revealed that hundreds of millions of passwords had been stored in plain text (imagine “ilovemydog0476”) instead of encrypted.

What can you do to protect yourself? According to the Federal Trade Commission, paid data protection solutions include “monitoring” services that watch for signs that an identity thief may be using your personal information or “recovery” services that help you deal with the effects after someone has used your identity.

Monitoring services fall into two categories. One type monitors activity on your credit reports at one or all of the major credit bureaus. For example, this service would send you an alert when a new loan or credit card account is opened in your name. Identity monitoring alerts you when your personal information is being used without your knowledge. The information could include bank account information, Social Security number or driver’s license number and may involve such activities as payday loan applications, change of address requests or new wireless service accounts.

On the identity recovery side, you can find assistance after identity theft has occurred. A case manager can walk you through the issues you’ll need to address and will assist you in writing letters to creditors and debt colleges, among other things. They may even represent you in dealing with creditors.

In the meantime, you can protect yourself with low-cost or free services recommended by the FTC:

  • Monitor your credit reports for free. Federal law requires each of the three major credit bureaus to give you a free credit report – at your request – each year. Visit AnnualCreditReport.com – the only authorized website for free credit reports. If you want to monitor your reports over time, you can spread out your requests, getting one free report every four months.
  • Review statements for your credit card, bank, retirement, brokerage and other accounts every month. Or log in and check them even more frequently. They can tip you to fraudulent charges on your accounts long before issues show up on your credit report.
  • Review the explanation of benefits statements you get from your health insurance providers. If you see treatments you never received, immediately tell your insurer and medical providers.

Consider placing a free credit freeze – also known as a security freeze – on your credit files with the major credit bureaus. A credit freeze blocks anyone from accessing your credit reports without your permission. Because potential creditors can’t check your reports, a credit freeze generally stops identity thieves from opening new accounts in your name. To freeze your credit reports, you’ll have to contact each of the credit bureaus

separately. If you opt for a freeze, each time you need to allow a company to check your credit, you’ll have to lift the freeze.