How to Protect Yourself and What to Do if You Suspect Identity Theft
The recent National Public Data breach has made major headlines this past week, exposing millions of records that include sensitive personal and financial information. As one of the largest data breaches in recent memory, it has left many individuals vulnerable to identity theft, financial fraud, and other malicious activities. If you’re concerned about how this breach may affect you, it’s crucial to understand the risks and take steps to protect yourself.
What Happened: An Overview of the National Public Data Breach
The National Public Data breach compromised a vast amount of personal information, including Social Security numbers, tax identification numbers, banking details, and other critical data. This breach has put millions of people at risk, making it easier for cybercriminals to commit identity theft and financial fraud.
How the Breach Could Affect You
1. Increased Risk of Identity Theft and Financial Fraud
With your sensitive information potentially in the hands of cybercriminals, there’s an increased risk that your identity could be stolen. Scammers may attempt to use your stolen data to open credit accounts, file fraudulent tax returns, or access your financial accounts. It’s important to be vigilant and take steps to monitor your financial activities.
2. Potential Financial Losses
If your identity is stolen, the financial impact can be significant. You could be held responsible for fraudulent charges, loans, or other financial activities that you didn’t authorize. Recovering from identity theft can be a long and stressful process, often involving hours of work to clear your name and repair your credit.
3. Compromised Personal Information
Beyond financial loss, a data breach can expose other sensitive information that could be used to harm you in different ways. For example, cybercriminals might use your information to commit tax fraud, apply for government benefits in your name, or even attempt to impersonate you online.
Steps to Protect Yourself After the National Public Data Breach
If you’re concerned that your information may have been compromised in the National Public Data breach, here are some steps you can take to protect yourself:
1. Monitor Your Financial Accounts Closely
Keep a close eye on your bank accounts, credit cards, and other financial statements for any suspicious activity. Look for unauthorized transactions, new accounts you didn’t open, or changes to your account information. If you notice anything unusual, report it to your financial institution immediately. There are some free and low-cost credit monitoring services you may want to consider. Your Aldridge Borden advisor can discuss some of these options with you. Also, some banks offer it as a free service to their customers. Check with your bank to see if this is something they offer!
2. Set Up Fraud Alerts and Credit Monitoring
Consider placing a fraud alert on your credit reports. This will make it more difficult for someone to open new accounts in your name. You can also sign up for credit monitoring services, which will notify you of any changes to your credit report, such as new accounts or inquiries. There are 3 major credit bureaus—Equifax, Experian, and TransUnion and you need to check your credit reports on all 3.
Equifax:
1 (888) 378-4329
Experian:
1 (888) 397-3742
TransUnion:
1 (800) 916-8800
3. Freeze Your Credit
A credit freeze is one of the most effective ways to prevent identity thieves from opening new accounts in your name. By freezing your credit, you restrict access to your credit report, making it difficult for anyone to obtain credit in your name without your permission. You can lift the freeze temporarily if you need to apply for credit. It’s important to note that you MUST establish a credit freeze with all 3 credit bureaus for the freeze to be effective.
4. Review Your Credit Reports Regularly
Check your credit reports from the three major credit bureaus—Equifax, Experian, and TransUnion—at least once a year. You’re entitled to a free copy of your credit report from each bureau annually through AnnualCreditReport.com. Reviewing your reports can help you spot any inaccuracies or suspicious activity.
5. Secure Your Online Accounts
Change your passwords for online accounts, especially those related to financial services. Use strong, unique passwords for each account and consider enabling multi-factor authentication (MFA) for an extra layer of security. MFA requires a second form of verification, such as a text message code, in addition to your password.
What to Do If You Suspect Identity Theft or Fraud
If you suspect that your identity has been stolen or that you’ve been a victim of fraud, it’s important to act quickly:
1. Report the Fraud Immediately
Contact your financial institutions to report any unauthorized transactions or accounts. They can help you close fraudulent accounts, secure your existing accounts, and prevent further damage.
2. File a Report with the FTC
The Federal Trade Commission (FTC) provides resources for victims of identity theft. Visit IdentityTheft.gov to file a report and create a recovery plan. The site offers step-by-step guidance on how to address different types of identity theft and restore your financial well-being.
3. Place a Fraud Alert or Credit Freeze on Your Credit Reports
A fraud alert informs creditors that you may be a victim of identity theft and instructs them to take extra steps to verify your identity before opening new accounts. You can request a fraud alert from any of the three major credit bureaus, and they are required to notify the other two. A credit freeze is different than a fraud alert in that the credit reporting agency cannot release your credit information without your prior approval.
4. Contact Law Enforcement
In some cases, it may be necessary to file a police report, especially if you know the identity of the perpetrator or have significant financial losses. A police report can be helpful when disputing fraudulent charges or dealing with creditors.
5. Document Everything
Keep detailed records of your communications with financial institutions, credit bureaus, law enforcement, and the FTC. Document the dates, names of representatives, and outcomes of your interactions. This information can be invaluable as you work to resolve the issues caused by identity theft.
6. Consider Informing the IRS
If you are an actual or potential victim of identity theft and would like the IRS to mark your account to identify any questionable activity, you should complete a Form 14039, Identity Theft Affidavit. The IRS may then choose to issue you on an annual basis an Identity Protection PIN (IP PIN) for you to use when electronically filing your return.
Conclusion: Stay Vigilant and Take Action
The National Public Data breach is a reminder of the vulnerabilities we face in today’s digital world. While it’s impossible to eliminate the risk of identity theft entirely, taking proactive steps to protect your personal information can significantly reduce your chances of becoming a victim. By monitoring your financial accounts, securing your credit, and knowing what to do if you suspect fraud, you can protect yourself and mitigate the potential damage from this breach.
Remember, the sooner you take action, the better your chances of minimizing the impact on your financial and personal life. Stay informed, stay vigilant, and don’t hesitate to call your contact at Aldridge Borden if you need any assistance navigating the complexities of identity theft.