ES: After a Massive Breach, Is Your Data in Danger?

National Public Data, a consumer data broker, confirmed last week that a hacker had targeted the company in December 2023, "with potential leaks of certain data in April 2024 and summer 2024." Other reports indicate that this leaked data had been found on the dark web and could include the names, addresses, phone numbers, and Social Security numbers of millions of Americans. A data breach of this magnitude is
especially worrisome, and is the latest in a string of major data breaches this year. If you're wondering what you can do to help protect yourself against the growing threat of identity theft, here are some steps to consider.

Place fraud alerts and credit freezes

One way to reduce your risk after a data breach is to place a fraud alert or a credit freeze on your credit report. Both options are free tools that can help prevent fraud. However, they work in different ways.

A fraud alert is a notice added to your credit report. It warns potential creditors that your identity may have been compromised. Creditors can still check your credit. They must take extra steps to verify your identity before issuing new credit in your name.

You can place a fraud alert by contacting one of the three major credit bureaus. These bureaus are Equifax, Experian, and TransUnion. The bureau you contact will notify the other two.

An initial fraud alert lasts for one year. It can be extended to seven years if you are an actual victim of fraud.

A credit freeze, also called a security freeze, offers stronger protection. It may help if you believe your personal information was stolen. Once a credit freeze is in place, most creditors cannot access your credit report or score. There are some limited exemptions.

This restriction helps prevent identity thieves from opening accounts in your name. To request a credit freeze, you must contact each of the three credit reporting agencies individually.

A credit freeze remains in place until you remove it. You will need to lift it temporarily before applying for new credit.

You can set up a fraud alert or credit freeze online, by phone, or by mail. Follow the instructions provided by each credit bureau. This is also a good time to request a free credit report. Reviewing it allows you to check for recent credit activity.

Below are the website addresses and phone numbers for the three major credit bureaus.

• Equifax, at Equifax.com 888-298-0045
• Experian at Experian.com 888-397-3742
• TransUnion at Transunion.com 800-916-8800

Continue to monitor your personal and financial information

• Consider subscribing to a credit monitoring service if you need extended support. These services come at a cost, but may bundle together credit report monitoring, credit report locks, scans of the dark web, help with recovering from identity theft, and identity theft insurance.
• Periodically review your credit reports to spot suspicious activity. You can receive free weekly online reports from all three credit bureaus at the official site annualcreditreport,com.
• Sign up for alerts for your bank, financial, and credit card accounts that will notify you when a transaction has occurred or someone has signed into your account. Check your accounts frequently and review your statements.
• Pick strong passwords that are different for each account, and change them periodically. For an extra
• layer of protection, use a password manager that generates strong, unique passwords that you control
• through a single master password.
• Enable multifactor authentication when offered. For example, in addition to providing a password, you may be required to enter a code sent to your phone or email, answer a security question, use a physical security key, or sign in using a facial or fingerprint scan.
• Keep your device and security software up to date. Operating system and software updates may include security fixes. An easy way to do this is to turn on automatic updates.
• Watch out for phishing attempts from scammers seeking passwords or financial information. Be cautious if you receive a link or attachment in your email or via social media. Don't click on it until you can verify that it's legitimate. Let unsolicited phone calls go to voicemail, and double-check phone numbers, even if they appear familiar or seem to come from a company that you normally do business with.

IMPORTANT DISCLOSURES

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer to avoid penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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