Identity theft is one of the fastest growing crimes in the world, and the need to protect your personal information is growing more and more critical. It's a hot topic, but a "credit freeze" may provide a cool solution.

While we hate to give them credit (literally), identity thieves are a pretty creative bunch. They've developed all types of scams to bilk people of their personal IDs, and then use the data to commit a variety of crimes. With just a few fragments of information, an identity thief can open new credit cards, as well as utility accounts in your name.

It's a scary world, but new methods are being invented every day to fight back. One of the most intriguing new advances is designed to protect your credit report, the pot of gold at the end of every ID thief's rainbow: your credit report.

Freeze them out

The latest security measure is called a "credit freeze," and it prohibits anyone from opening a credit account in your name. Lenders, insurers, and employers aren't allowed to pull your credit report on their own. If they try, they'll be told that the account is frozen.

You alone have the power to thaw it out. Using a personal identification number, you can permit access to your credit report. It's a minor inconvenience if you're applying for a credit card, but a necessary step to prevent ID thieves from waltzing in and accessing your credit history.

Costs and limitations

Naturally, a service like this doesn't come for free-but the cost is minimal. They generally run $10 per credit bureau (there are three). At this point, the fee doesn't need to be renewed on an annual basis.

There's one catch-only certain states currently permit it. California was the first to offer it, and now Colorado, Connecticut, Illinois, Louisiana, Maine, North Carolina, New Jersey, Nevada, Texas, Washington, and Vermont have followed suit. Illinois, Texas, Vermont, and Washington only allow this option for previous victims of identity theft. (So much for preventative measures.)

Fraud alert: Another option

If you're concerned about identity theft, but live outside the states that allow a freeze, you can have credit bureaus equip your credit report with a fraud alert. These will automatically signal you if someone is attempting to access your report. Some alerts will ask the creditor to contact you for permission to access your account, but they're not required by law to follow the directive.

While the credit freeze is limited to certain states, it's only a matter of time before it's accepted throughout the country. With millions of dollars being lost to ID thieves every year, such security measures are essential. The crime is causing plenty of law-abiding citizens to get hot under the collar. One way the government can cool off the situation is to allow consumers to put credit reports in a deep freeze.