Stunningly, news broke this week that the Social Security number for virtually every American was hacked. The hack was discovered when the records, reportedly the private information of nearly 2.9 billion people, mysteriously appeared on the dark web. This ‘incident’, blamed on National Public Data, a background check company, dwarfs the Equifax data breach of 2017 where Social Security numbers for 143 million Americans were compromised. At this point it is best to assume that your Social Security number is no longer private, raising the risk of identity theft and credit fraud. I do not make that statement scare people, but it is important to be aware and realistic. Here are some practical steps that you can take right now to help make yourself more secure.
1. Review your credit report
Go to https://www.annualcreditreport.com to get your free credit report detailing the credit activity under your social security number. This report is more than just a score; it lists all of the accounts open in your name, and the activity in each. Review the activity and look for accounts you don’t recognize. If so, contact the credit agency immediately.
2. Create a Social Security online account
Even if you are not ready to apply for Social Security benefits you can create a Social Security account at https://www.ssa.gov/myaccount/. You can use your account to review your wage and benefit history. If you see activity that you do not recognize, someone could be using your Social Security number to obtain employment or claim benefits under your Social Security Number. If so, contact Social Security immediately.
3. Place a ‘Credit Freeze’ on your files.
A credit freeze is a tool that will restrict access to your credit report, making it more difficult for identity thieves to open new accounts in your name. Admittedly, placing a credit freeze on your account can be a hassle since you will not be able to open new credit cards or loans without first temporarily unfreezing your credit, but this is a very effective tool to keep identity thieves from even getting started.
To place a credit freeze on your account you will need to contact each of the credit reporting agencies: Equifax, Experian and Transunion. Essentially each reporting agency will send you a unique PIN that you will need to ‘unfreeze’ your credit each time you need a loan. You can learn more about freezing your credit at https://www.consumer.ftc.gov/articles/0497-credit-freeze-faqs
4. Place a ‘Fraud Alert’ on your files
If you don’t want to go as far as placing a credit freeze on your accounts, you can place a ‘fraud alert’ on your account. A fraud alert makes it more difficult for identity thieves to open accounts in your name since it requires creditors to verify your identity before any accounts are opened. Fraud alerts can be for 90 days or be extended for 7 years. Since I suspect my information has been compromised, and since I don’t often open new credit reports, I have personally opted for the ‘credit freeze’ rather than the ‘fraud alert’ since I believe the ‘freeze’ offers more protection. You can learn more about placing a fraud alert on your account here: https://www.consumer.ftc.gov/articles/0275-place-fraud-alert
5. Credit monitoring
I always prefer the free steps listed above, but credit monitoring services can be a helpful tool. Companies such as Lifelock will monitor your credit for you and provide reimbursement for stolen funds. Plans start at $7.50 per month. https://lifelock.norton.com/
By taking these prudent steps you can sleep better at night knowing that you are protected. If you have any questions, please feel free to call any time.
Comments