A record data breach has recently occurred at Equifax which is one of three credit monitoring companies. A data breach is an incident in which sensitive, protected or confidential data has potentially been viewed, stolen or used by an individual unauthorized to do so. Through identify theft, this could potentially result in unauthorized charges on the victim’s credit cards, money stolen from bank accounts, credit scores ruined, false tax returns filed, and the identity thief could even commit crimes in the victim’s name.
At this point, the question is not if your information will be compromised, but most likely when. What are victims of a credit breach to do to protect their identity, assets and credit standing?
"If there is a breach and you’re concerned about identify theft, credit monitoring is not the most effective measure," Chi Chi Wu, a lawyer with the National Consumer Law Center, told NBC News. "A credit freeze is."
Although there are several steps a consumer can take to monitor credit, they do not necessarily insure data protection. It’s sort of like closing the barn door after the horse has left the barn.
How to Freeze Your Credit Report
To freeze your credit at Equifax, go to www.freeze.equifax.com.
Enter your complete name, address, social security number, date of birth, and code verification. On the next screen, select that you want to place a security freeze. Then confirm by clicking on "submit." The next screen will notify you that your security freeze request has been processed and that you will need to view and print your one-time PDF letter containing your PIN#. Write down your PIN code in a secure place when you receive it. Equifax has waived any fees to freeze credit with their company.
If you prefer to submit your request in writing, send the same information as requested on the website to: Equifax Security, Freeze P.O. Box 105788, Atlanta, Georgia 30348
It is prudent to do the same thing at the other two credit bureaus. You will most likely have to pay to freeze your credit with the other two agencies, but experts say it's worth it.
Experian: https://www.experian.com/freeze/center.html
TransUnion: https://freeze.transunion.com/sf/securityFreeze/landingPage.jsp(Allows a credit lock or freeze with advantages and disadvantages listed for each.)
After you complete your credit freeze, the only other entities that are allowed to see your credit report are government agencies carrying out a search warrant or subpoena and yourself (if you're trying to access the free credit report that is entitled to you once per year per credit bureau at annualcreditreport.com). Once you have placed a freeze on your credit, if you wish to apply for new credit, you will need to unfreeze your records which can take a few days and in some states, you will be charged a fee for placing or removing a freeze.
Top 10 Credit Smart Actions to Take With or Without a Credit Freeze:
1. Contact one of the three credit bureaus -- Equifax, Experian and TransUnion -- to put a free fraud alert on your credit report, which makes it harder for an identity thief to open more accounts in your name. (Under law, each is obligated to notify the other two.) It lasts 90 days, but you can renew it. Fraud alert phone numbers for all three bureaus are: Equifax (1-888-766-0008), Experian (1-888-397-3742) or to speak with a person (714-830-7000), or TransUnion (1-800-680-7289).
2. File a complaint with the Federal Trade Commission (www.identitytheft.gov) and print your Identity Theft Affidavit. Use that to file a police report and create your Identity Theft Report.
3. Guard your information. Refrain from providing businesses with your Social Security number (even if they request it). Medicare recipients should be especially careful, because SSNs are printed on Medicare cards.
4. Don't provide personal information over the phone, through snail mail or via the internet unless you have initiated the contact or you know who you are dealing with.
5. When sending personal financial information to approved recipients over the internet, use encrypted transmission.
6. Beware of over-sharing on social media. Parents should also speak with their children about the dangers of sharing too much information.
7. Protect your password. Change logins and passwords monthly, use password generators and sign up for two-factor authentication.
8. Shop carefully. Don't send financial information on unsecured wireless networks, and when making purchases use a credit card, which has more fraud protections under federal law than debit cards or online payment services.
9. Review credit card statements promptly. Before you pay, make sure that there are no fraudulent charges.
10. Review your credit report (and your children’s) every 12 months at annualcreditreport.com. If you find an error, report it immediately and stay on top of the process.
Consumer Protection Laws – Fair Credit Reporting Act
Even as millions of consumers contend with fallout from the Equifax data breach, Republican lawmakers are quietly backing legislation to deregulate credit agencies and make them even less accountable for wrongdoing. Bills are pending in Congress to limit class-action damages for violations of the Fair Credit Reporting Act and to give credit agencies more latitude in profiting from identity theft protection products.
It’s ironic that, on the same day that Equifax announced this data breach, Congress was considering a bill that would dramatically reduce the consequences of violating the Fair Credit Reporting Act (FCRA) for the credit bureaus and other industry players.
We need stronger, not weaker, consequences when companies violate long-standing privacy laws, such as the FCRA. Credit bureaus, such as Equifax, should not be rewarded with reductions in legal accountability given these recent events.
Consumer advocates say the Equifax breach should serve as a wake-up call for Americans that the three leading credit agencies — Equifax, Experian and TransUnion — are focused primarily on earning cash from people’s personal information, not keeping such information under lock and key. "Consumers are not customers of these companies — they’re commodities," said Chi Chi Wu, a staff attorney with the National Consumer Law Center. "We have no say over what they do with our data."
"We need to prevent the fraudsters who need the creditors’ approval to open fake accounts using your stolen identity. Freezing your credit is the best way to accomplish this." Diane Pyshos reports.
Submitted By:
Diane Pyshos Sr. Mortgage Consultant, A & N Mortgage Services, Inc.
dianep@anmtg.com 312-909-9718
NMLS #137800 Company ID #19291
Offices in Chicago, IL and Union Pier, MI
