Protect your credit as data breaches multiply

Q:

I have a friend who found out her Social Security number was part of a massive data breach. Apparently, it means her number, along with millions of others, is available on the dark web. I hear these fraudsters try to take credit out in your name and may even try to get home titles transferred, all of which can do serious financial harm. What can I do to protect myself right now in case that happens to me?

A:

First, there’s no reason to panic. There are steps you can take to help protect your credit and the title of your home, and you’re being proactive about taking them. 

So, what are the steps?

1. Freeze your credit
   
   One of the most effective steps is to freeze your credit – and it’s free. This will prevent potential creditors from being able to access your credit report, so credit can’t be taken out in your name. All you have to do is visit the three credit bureaus – Equifax, Experian and TransUnion – and follow instructions to freeze your credit. 
    
   Remember that if you try to take credit out yourself, you will need to unfreeze it with the three bureaus.
   
2. Set up fraud alerts  
   You also can set up fraud alerts at all three agencies, and these are also free. This will tell lenders that you could be a victim of fraud and that they need to call you if someone tries to take out a loan or credit in your name. A fraud alert usually lasts for a year.
   
   
3. Review your credit report 
   
   Make sure to review your credit report from all three credit bureaus to ensure your personal information, including your loans and other credit information, is listed accurately. (You can get your credit reports for free on a weekly basis.) If you find inaccurate information, contact the credit agency.
   
4. Sign up for identity monitoring
   
   Sign up for identity monitoring alerts if your financial institution is offering them for free or a nominal fee, so you will know if your personal information has been part of a data breach. 

Meanwhile, check with your county’s register of deeds to see if there have been any changes to your deed and mortgage records that could indicate title theft.

Some other preventative steps

And for good measure, here’s a reminder of some other preventative actions to take against fraud: 

• Never give out any personal information if someone claiming to be from your bank or the government calls you asking for it. Call your bank or the government back at their official number if this happens and report it.  
• Don’t click on suspicious links from emails that appear to be from your bank or a financial institution.
• Don’t throw out papers with personal information intact, such as credit card numbers, your Social Security number, tax information, your birth date and current address. Invest in a shredder and shred these materials.

Sadly, hackers are becoming more and more sophisticated and data breaches have become commonplace. This past spring, there was a data breach that included 2.9 billion records on millions of Americans, which included names, addresses and Social Security numbers. 

Bottom line: Data breaches are affecting all of us, so we all need to take precautions to protect our identity, credit and assets from these bad actors.

WE HOPE YOU’VE FOUND THIS INFORMATION HELPFUL

Remember that any financial guidance must be adapted to your unique circumstances, so consult your financial planner. In the meantime, keep those questions coming!