Immediately change the subject. You could say something like 'Hey, that's not a good topic. Have you seen any interesting movies lately?' This shows that you don't want to engage in such inappropriate talk. Also, it's important to convey that this kind of story is not acceptable in a normal conversation without being rude.
Tell them firmly that you are not interested in hearing such vulgar stories. You could add that it makes you uncomfortable and that you would prefer to have a positive and professional conversation. For instance, 'I'm not into this kind of stuff. Let's keep the conversation clean and work - related.'
I would immediately interrupt and say that this is a private and inappropriate matter that should not be shared. It's important to set boundaries and uphold good taste in conversation.
Well, sometimes it's obvious when they get defensive or change the subject quickly. Also, if their story doesn't add up or has contradictions, that could be a sign.
You can tell if someone hid their story if they have inconsistent accounts, are overly vague, or suddenly become reluctant to discuss the topic. Maybe they also try to change the subject quickly.