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Recent headlines about data breaches and losses of personal information have prompted many companies to advertise products or services to help consumers prevent or minimize their risk of identity theft.

Before you pay for an identity theft prevention product or service, make sure you understand exactly what you’re paying for. You may find it’s easier to pay someone to protect your information, but some rights and protections can help you protect your identity and recover from identity theft at no cost. Here are some opportunities you can use to protect your identity.

A fraud alert is a signal placed in your credit report or credit file to warn potential creditors that they must use what the law calls “reasonable policies and procedures” to verify your identity before they issue credit in your name. Fraud alerts may be effective at stopping someone from opening new credit accounts in your name, but they may not prevent the misuse of your existing accounts.

A credit freeze allows you to restrict access to your credit report. If you place a freeze on your report, potential creditors and other people and businesses can’t get access to it unless you lift the freeze temporarily or permanently.

Limiting access to your credit report makes it more difficult for identity thieves to open new accounts in your name. That’s because most creditors will need to view a credit file before opening a new account; if they can’t see the file, they may not extend the credit. Still, a credit freeze may not prevent the misuse of your existing accounts or certain other types of identity theft.

Free credit reports are available for every consumer from each nationwide consumer reporting company every 12 months. Staggering these reports — that is, getting a report from a different company every few months — can help you monitor activity on your credit reports.

For more information or to request your free credit reports, visit www.annualcreditreport.com.

So what are we actually paying for when we employ the services of one of these companies? Identity theft protection companies offer a range of products and services for sale. Some allow you to “lock,” “flag” or “freeze” your credit reports. The companies advertising these services are often simply offering to place a fraud alert or credit freeze on your report.

These services also may renew or update your alerts or freezes automatically as long as you continue to pay. Under the law, initial fraud alerts and renewals are available for free if you have reason to believe you have been — or are about to be — a victim of identity theft.

Some companies, including consumer reporting companies, offer subscriptions to credit monitoring services. These services generally track your credit report and send you an e-mail alert reflecting recent activity, such as an inquiry or new account. Typically, the more frequent or more detailed the report, the more expensive the service.

Some companies offer services to help you rebuild your identity in the event of identity theft. Typically, these services operate by obtaining a limited power of attorney from you, which enables the company to act on your behalf when dealing with consumer reporting companies, creditors or other information sources.

Many companies may offer additional services, including removing your name from mailing lists or pre-screened offers of credit or insurance, representing your legal interests, “guaranteeing” reimbursement in the event you experience a loss due to identity theft or helping you track down whether your personal information has been exposed online.

Before you agree to pay for any of these services, read the fine print. You can get some of them yourself at no cost: for example, if you decide you don’t want to receive pre-screened offers of credit and insurance, you can opt out for five years or permanently by calling toll-free 1-888-5-OPTOUT (1-888-567-8688) or visiting www.optoutprescreen.com.

In every case, you need to know the three major credit reporting companies. Here are their names and their toll-free numbers.

Equifax: 1-800-525-6285

Experian: 1-888-EXPERIAN (397-3742)

TransUnion: 1-800-680-7289

If you have questions about your credit on money management issues, call me at the Cooperative Extension. I’ll be glad to work with you.