Protecting Yourself from Data Breaches and Identity Theft

Protecting Yourself from Data Breaches and Identity Theft

Asheville – Imagine receiving an email or letter from a company you trust, informing you that their systems have been breached and your data may be at risk. It’s easy to put it off, thinking you’ll deal with it later. But what happens when a seemingly local number calls, claiming to be from your cardmember services, warning you of fraudulent activity using your identity? The caller proceeds to recite your birthdate, Social Security number, and even your credit card numbers and balances, asking you to verify the information. This, sadly, is a common scam, and it’s crucial to know how to protect yourself.

Recognizing the Scam

The first red flag is the use of a local phone number; legitimate creditors typically don’t use such numbers. Secondly, the caller might have a foreign accent. A credit card company will never ask for or provide account numbers, PINs, or other sensitive information, other than your address. Avoid answering any questions or verifying any account details. These are scammers looking to steal your financial identity.

The Growing Threat of Scams

Scammers are costing North Carolinians a substantial amount each year – a staggering $197.7 million in the first three quarters of 2024, according to available data. One identity protection site reports that over 1,000 companies experience data breaches annually. Hackers then sell your compromised personal information on the dark web, leaving you vulnerable. Surprisingly, children are targeted 51 times more often than adults, and parents often don’t realize their children’s identities have been stolen until they try to apply for credit at age 18.

Data breaches affect everyone. Recent examples include:

• Marriott’s Starwood Properties (impacting 500 million people)
• Groupon
• AT&T
• Loan Depot
• Evolve Bank
• HealthEquity
• Numerous Health, Financial, and Insurance Institutions

It’s worth noting that even identity protection companies like LifeLock have not been immune to data breaches.

Steps to Protect Your Data

Fortunately, there are proactive steps you can take to protect yourself and your family:

• Check Your Credit Report Regularly: You can get your credit reports for free at AnnualCreditReport.com. Review them for any unusual accounts or activity. Make a habit of doing this every month or so.
• Contact the Credit Bureaus Immediately: If you discover your information has been compromised, contact one of the three major credit bureaus immediately and request a fraud alert. The three bureaus are Equifax, Experian, and TransUnion. Ask them to notify the others. You can also freeze your credit with each bureau to prevent new accounts from being opened in your name. You’ll need to contact each bureau separately to freeze and unfreeze.
• Contact the Companies Involved: Even if no fraud has occurred, contact your bank, credit card company, or other financial institutions immediately. Ask them to flag or close the affected accounts and replace your cards. Open new accounts if needed.
• Report Identity Theft: Report theft and fraud activity to the Federal Trade Commission (FTC) on their website FTC.gov. If your identity has been stolen, go to IdentityTheft.gov which will help you create a personalized recovery plan.
• Change and Strengthen Your Passwords: Change the passwords for all your online accounts, and make them strong and unique. Enable multi-factor authentication wherever possible. Update passwords for every potentially vulnerable account you have.
• Monitor Your Accounts: Keep a close watch on your bank statements, credit card statements, and other financial accounts for any unauthorized transactions. The quicker you catch suspicious activity, the more promptly you can act.
• File a Police Report: If someone uses your identity for criminal activity, you may need to file a report with your local police department. A police report can help bolster claims with creditors and institutions.
• Contact the IRS: If you suspect someone is using your Social Security number for employment or to file taxes, notify the IRS immediately by visiting irs.gov.
• Consider Identity Protection Services: Identity protection companies vary greatly, so do your own research to find one that meets your specific needs. Some even safeguard the deed to your home and the title to your car. Inquire whether they have experienced data breaches themselves; if a company offers free identity protection after a data breach, be sure to take advantage of it.

By staying informed and proactive, you can significantly lower your risk of becoming a victim of identity theft and protect your valuable personal information. Don’t delay; take these steps today to secure your financial future.