Equifax Data Hack – Know your Risks, Take Action, Don’t Panic!

I spent the last few days discussing the Equifax hack and what it means for me and my family. I am writing this blog to share my understanding and actions with all my friends, colleagues, and readers. This will help you avoid a potential disaster in identity theft. Once a person’s identity is compromised, it is excruciating to restore normalcy. It takes a long time and significant expense to recover.  Good news – There is nothing to panic. Please take the steps to take action now and secure the future!

Context:

Equifax, one of three credit reporting agencies in the USA, recently announced a hack into their systems between May 2017 and July 2017. There is a potential impact on 145Mn records. The hackers have access to some or all of the critical identity information listed below:

• Social Security Number(SSN)
• Date of Birth
• Driver’s License number
• Credit Card number

Find more about the hack: https://www.equifaxsecurity2017.com/

What can hackers do with this information?

The hacker can impersonate you and damage your reputation, credit rating, and potential bankruptcy. The following actions are some of the damaging actions they can take using the information available through this hack.

• Open a financial account (bank or credit) against your name
• Open Mortgage / Take a loan against your name
• Take a job using your SSN and do not pay taxes

What can you do?

Before doing anything, please check whether you are impacted by the Equifax hack.

Please use the following link.

https://www.equifaxsecurity2017.com/potential-impact/

Make sure you are checking the impact on everyone in your family. The hackers can hit the least financially active family member. They become the easier target as you might not be monitoring those accounts regularly.

Whether you are impacted or not, you should follow these guiding principles going forward:

PREVENTION

There is a need to control who should access your credit information. You should prevent unauthorized access to your credit report right away. The hackers will sit on your data over your lifetime. Whenever they try to open any accounts using the hacked data, the institution will request a credit report from one of the three bureaus.

Putting a Security Freeze or Lock (offered by TransUnion only) makes a lot of sense. You can always unfreeze your account when planning a new mortgage or loan. This process will also ensure that you are NOT opening a new credit card every other day!

Equifax is providing Security Freeze for free. Please click on the link below 

https://www.freeze.equifax.com/Freeze/jsp/SFF_PersonalIDInfo.jsp

TransUnion provides Credit Freeze (with a fee) or Lock / TrueIdentity(for free). Please click on the link below

https://www.transunion.com/credit-freeze/place-credit-freeze2

Experian provides a Security Freeze with a fee. Please click on the link below

https://www.experian.com/freeze/center.html

I have put a Security Freeze on my Equifax and Experian accounts. Additionally, I have enrolled in TransUnion TrueIdentity to lock my credit reporting. I believe it’s a good idea to cover all the three credit reporting agencies.

DETECTION

Early detection will happen if you monitor your financial accounts regularly and analyze your credit report to spot any suspicious activities. Most of the banks are providing free credit scores now. Please get your free credit report annually using the link below:

https://www.annualcreditreport.com/index.action

Many other agencies, including these credit bureaus, provide credit monitoring and alerts. However, the major question arises from this hack –  how safe is the data with these monitoring agencies?

RESTORATION

As mentioned before, restoring your identity once it’s compromised is expensive and time-consuming. Some activities require specialists' help, such as notifying third parties, dealing with IRS, etc.

Most of the credit monitoring agencies provide insurance to provide help and reimburse your expenses as well. You can buy more insurance by paying an additional premium.

However, the cheapest and best way should be to add this service to your home or auto insurance. Most large Property and Casualty Insurers provide this service with a minimal add-on premium.

Some examples below:

• State Farm – $25 Provides a Case Manager and up to $25,000 expense reimbursement for restoration

https://www.statefarm.com/insurance/identity-restoration

• Allstate Identity Restoration Coverage

https://www.allstate.com/identity-restoration-coverage.aspx

I hope you find this blog useful and that you can make use of the tips.

References:

https://www.forbes.com/sites/johnwasik/2017/09/13/equifax-hack-4-ways-to-protect-yourself-now/#1d2a8aeb421e

http://www.chicagotribune.com/business/ct-equifax-consumer-protection-0910-biz-20170908-story.html

http://www.experian.com/news/data-breach-five-things-to-do-after-your-information-has-been-stolen.html

Photo Credit:

https://pixabay.com