If reports of yet another big data breach have you concerned about the safety of your personal information, and your finances, you’re not alone.
According to the Identity Theft Resource Center, approximately 1 billion people were affected by more than 1,500 data breaches in the first half of 2024. And we’re still learning the details of the massive breach at National Public Data (NPD) that compromised data belonging to millions of potential victims, including names, email addresses, mailing addresses, phone numbers, and Social Security numbers.
This is just the kind of vital information hackers need to apply for credit cards or loans in someone else’s name, intercept tax refunds and more.
We’ve written before about the damage identity theft can do—not to mention what it can take to clear up the mess. And I’m a big believer in doing everything you can to proactively protect yourself. But if you find you’ve been affected by a breach, or some other type of cyber fraud, it’s good to know there still are steps you can take to help set things right, including:
Confirm That There’s Been a Breach
It’s very likely that you’ll hear about a breach on the news—or from your credit monitoring service if you have one—before you receive an official notification from the company involved. You may even notice some odd activity on your bank or credit card statements.
To safely determine if you’ve been affected by a breach, you can go to the company’s official website to look for information, or directly contact customer service using the number provided on that site. (Beware of phishing emails containing bogus breach warnings meant to trick you into revealing sensitive data.)
Consider Freezing Your Credit Reports, Placing a Fraud Alert, or Both
Though it won’t protect existing accounts from being taken over by scammers, placing a fraud alert or freeze on your credit reports can help you stop thieves from opening new accounts in your name. Both can be effective tools for thwarting identity theft, but they work a bit differently.
- A fraud alert on your credit reports can serve as a red flag to lenders that they should verify your identity before approving any new loan or credit applications.
- A credit freeze offers even more protection: It completely prevents potential lenders from pulling your credit reports when someone applies for a new account in your name. (If at some point you want to open a new account, you’ll have to lift the credit freeze first.)
You can put a fraud alert in place by contacting one of the three major consumer credit bureaus (Equifax, Experian, or Transunion) online or by phone. Once you’ve set up the alert with one agency, the other two will be notified automatically. To freeze your credit, you’ll have to contact each credit bureau individually.
Report the Attack
If you notice strange activity on your accounts, don’t panic, but don’t delay. Notify the company or organization that’s involved and make sure your report is documented. It’s also important to contact your bank and credit card companies immediately.
If you have coverage through a credit monitoring service, you can contact that company for next steps.
You can also report identity theft and get a recovery plan at the FTC’s IdentityTheft.gov website. To help prevent scammers from filing a tax return using your Social Security number or Individual Taxpayer Identification Number, you can request an Identity Protection Pin from the IRS.
Monitor Your Accounts Closely
It’s always a good idea to regularly review your financial accounts and credit reports for unexpected activity—but it’s especially important after a data breach or other type of identity theft. You might notice password changes or unauthorized updates on your accounts, for example, or you may see purchases you don’t recognize on your online statements. Monitoring your credit reports and credit scores can also help you quickly identify potential problems, including new accounts that have been opened in your name.
Consumers can go to AnnualCreditReport.com or call (877) 322-8228 to get a free credit report from each of the three credit bureaus. If you suspect fraud, you can dispute any incorrect information with the credit bureau and the company that reported it.
Change Your Passwords
It makes sense to update your login information occasionally, whether you’ve been a victim of identity theft or not. But if you think your data has been exposed to scammers, this is something you should do immediately.
One of the best ways to shield your accounts is to use long, strong and unique passwords. Or you can download a password manager app that will generate random passwords for you and store them in a virtual vault. Then it will fill in your username and password for you when you visit a site. You can also enable two-factor or multifactor authentication, so you’ll know right away if someone else is trying to access your account.
Protect Yourself Going Forward
Like it or not, unless you cut off all contact with the digital world, your personal information is likely to be sprinkled across the internet. And unfortunately, some of the sites holding your data aren’t guarding it as carefully as you might think.
But you can help protect yourself by following the steps above and by exercising extreme care when sharing personal details, especially your Social Security number.
If you want further backup in your battle against cyber theft, you also may want to consider hiring a credit monitoring service. That way you’ll be notified quickly about breaches or unusual activity in your credit reports.
For more information, please download our useful Identity Theft Guide.
As always, I’m available to address your concerns and to help you protect your overall financial well-being. Don’t hesitate to reach out to me if you have any questions. I’m here to help you safeguard your identity and finances.
