The Los Angeles Times recently reported that a hacking group had stolen the personal records of 2.9 billion people from National Public Data, a firm that provides personal information to employers, staffing agencies, private investigators and other organizations conducting background checks.[1] The information released included individuals’ Social Security numbers, full names, birthdates, addresses, phone numbers and more.
According to a class action lawsuit filed in the U.S. District Count for the Southern District of Florida, the hacker group referred to as USDoD attempted to sell the stolen data for $3.5 million. If the data breach is confirmed, it would be among the largest ever, in terms of the number of individuals impacted.[2]
What is even more worrisome is that National Public Data scours a wide range of non-public sources to gather individuals’ personal information. That means many people do not even realize their data is being stored by the company.
This data leak serves as a reminder of the importance of taking proactive steps to secure your data and accounts. The following tips can help minimize your chance of falling victim to identity fraud due to data leaks.
#1 – Freeze your credit files.
If you fear your data has been compromised, consider freezing your credit files at each of the three main credit bureaus: TransUnion, Equifax and Experian. Putting a freeze on your credit prevents others from signing up for credit cards, taking out loans and opening financial accounts in your name. If you need a credit check in the future, it is relatively easy to temporarily lift the freeze until you are approved.
Also, each of the credit bureaus provides one free credit report per year. Take advantage of this annual opportunity to review your reports for unauthorized activity.
#2 – Monitor your accounts.
It is important to regularly check in on all your financial accounts in order to quickly identify and address any fraudulent transactions. A good rule of thumb is to log in to each of your accounts at least once per week. It is also wise to set up online banking alerts to notify you of any suspicious transactions.
#3 – Use strong passwords and multifactor authentication.
Be careful with the passwords you use to log in to accounts. Always select passwords that are difficult to guess, using a combination of uppercase and lowercase letters, numbers and special characters. Be sure to choose different passwords for each account so that if one password is compromised, the others are still protected.
Also, most financial institutions now offer multifactor authentication, which adds another layer of protection to your accounts. This security feature requires an additional piece of data in order to log in. You may be required to answer security questions or enter an access code that is sent to your cell phone. Whenever possible, be sure to opt in to this important security feature.
Steps to take if you have been the victim of identity theft
If you believe your data has been used for fraudulent purposes, take immediate action to secure your accounts.
- Initiate a fraud alert with the three major credit bureaus. Doing so requires that the bureaus take additional steps to verify the legitimacy of a credit request before providing any information.
- Notify all your financial institutions and lenders of the potential fraud.
- Promptly dispute any suspicious transactions with the relevant financial institutions.
- Report the identity theft to the relevant authorities, including:
- The Federal Trade Commission
- The Consumer Financial Protection Bureau
- The FBI Internet Crime Compliant Center, if online fraud occurred
- The United States Postal Inspection Service, if any fraud-related communication occurred via U.S. mail
- Local law enforcement and your state’s attorney general
- Talk to your financial advisor. He or she may have additional tips to help secure your specific financial interests and can help monitor your accounts for suspicious or unauthorized activity.
At United Capital, we strive to help our clients navigate a wide range of financial challenges, including potential financial fraud. If you fear you may have fallen victim to identity theft, please contact us for help sorting it out.
[1] https://www.latimes.com/business/story/2024-08-13/hacker-claims-theft-of-every-american-social-security-number
[2] https://news.bloomberglaw.com/privacy-and-data-security/background-check-data-of-3-billion-stolen-in-breach-suit-says
