An attack on the internet not long ago scared millions of people in the US. Hackers were able to get into a huge database that had private information about people, like Social Security numbers and birthdates. The breach is thought to have affected most people, which has caused a lot of worry about the risk of identity theft for those whose information may have been stolen.
The event, which happened in April, showed where the security systems that keep our personal information safe are weak. The business whose database was hacked seems to be a background check company, which would explain why so much information was made public—about 2.7 billion records, to be exact.
Why it’s concerning if your Social Security number is leaked
One of the most important things that cybercriminals can get is your Social Security number. They can start bank accounts, apply for loans, and buy things in your name if they have this information along with other personal information like your birthdate. Identity theft is a type of fraud that can have terrible effects on your funds, landing you in debt and credit problems for no reason of your own making.
The problem with these kinds of data breaches is that you might not know right away if your name has been stolen until it’s too late. Some people may use your information for their own gain while you go about your daily life. To keep your credit safe and stop thieves from using your information, it’s important to take precautions in cases like this.
How to protect your credit by freezing your reports
If you want to protect your credit, one of the best things you can do is freeze your records with Equifax, Experian, and TransUnion. No one, not even you, can start new accounts in your name after you freeze your credit. You have to unlock it first. This process is easy, quick, and doesn’t cost anything.
Your present accounts won’t be affected by freezing your credit. There will be no problems for you to use your bank funds and credit cards. When you freeze your credit, you add an extra layer of protection that makes it almost impossible for someone else to start a new line of credit without your permission.
You can temporarily raise your credit score if you need to get a loan, start a new account, or sign up for a service that checks your credit in the future. This is also a simple process that can be done in minutes on the websites of the credit bureaus.
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Should you freeze your credit even if you haven’t been a victim of fraud?
Freezing your credit is a good way to protect yourself and can save you a lot of trouble in the future, even if you haven’t already been a target of identity theft. In the US, the Federal Trade Commission (FTC) says that you should do this to protect yourself from scams, especially after a big data breach like the one that just happened.
It won’t get in the way of your daily life to keep your credit frozen. Yes, you can still use your credit cards, open a bank account, rent an apartment, and look for work. The credit freeze only affects new credit requests. This means that any attempts to use your credit to commit fraud will be stopped right away.
Fraud alerts: an additional layer of security
Your credit can be frozen, and you can also add a scam alert to your reports. Lenders and creditors should be extra careful before starting an account in your name after seeing this alert. Usually, they will call you to make sure you are who you say you are before granting any credit requests.
There are times when fraud alerts can be very helpful, like when you think your information may have been stolen but aren’t sure. Set up these alerts with just one credit bureau; that bureau will then tell the other two. They are free.
Regularly check your credit report
Reading your credit report at least once a year is another thing you can do to protect yourself. Every 12 months, all three of the big credit bureaus must give you a free copy of your credit report. If you look over your report, you can find any strange behavior, like opening accounts you don’t remember or credit checks you didn’t give permission for.
If you notice something that doesn’t seem right, you should look into it right away and fix the problem. It will be easier to fix the damage if you find out about possible identity theft quickly.
Identity monitoring services: are they necessary?
You can sign up for identity tracking services that will keep an eye on your personal information and let you know if they notice anything fishy. Even though these services can give you extra security, you don’t really need them if you’re already doing things like freezing your credit and checking your reports often.
You can choose which of these services to use based on how worried you are and how much information you think is at risk. You might want to use one of these services if you are in charge of a lot of accounts or think hackers might be interested in you.