Actions to Take After a Data Breach
Feeling uneasy after a data breach notification? You're not alone. But don't fret! Whether your information was compromised or not, this is a chance to beef up your security posture.
This guide provides 5 steps to take after a data breach. It also offers 4 additional ways to protect your information in the future. Let's empower yourself with knowledge!
Five Steps to take Following a Data Breach
1. Assess the Damage: What Data Went Missing?
Not all breaches are created equal. Understanding what kind of information was compromised determines the appropriate response. Losing a credit card number requires different steps than a Social Security number leak.
If there are few details, it's best to consider the worst-case scenario. Assume that your important information, like your Social Security number, could be at risk.
Here's why it matters:
Credit Cards: These can be canceled and replaced, minimizing damage.
Social Security Number: This requires long-term vigilance. Monitor your credit reports closely and review your work history with the Social Security Administration.
If you have been a victim of identity theft, you can use a helpful tool called IdentityTheft.gov. It can assist you in reporting the crime and recovering from it.
2. Double Down on Defense: Activate Security Features
Many platforms offer security features like real-time transaction alerts and multi-factor authentication (MFA). Think of them as extra security layers on your accounts.
Multi-factor Authentication (MFA) is your secret weapon. MFA adds an extra layer of security by requiring a unique code sent to your phone or a fingerprint/facial scan.
This is instead of just using a password, which can be hacked. The unique code adds an additional level of protection to your account. It helps to prevent unauthorized access.
Real-time transaction alerts act as your eyes and ears. You can get email or text alerts for any changes in your information or account transactions. If you see something fishy, you can quickly contact your financial institution to stop it.
Activate these features on all your accounts with important information. This includes financial accounts, phone, email, and social media. The more layers of security, the better!
3. Become a Credit Watchdog: Review Your Reports Regularly
You are entitled to a free credit report every year from Equifax, Experian, and TransUnion. Think of them as your financial reputation trackers.
Here's the power move: Don't wait a whole year! Stagger your checks throughout the year, reviewing one report roughly every 4 months. This way, you catch suspicious activity faster.
Look for:
Inaccurate Information: Incorrect addresses, typos, or misspelled names can be red flags.
Mystery Accounts: Don't recognize an account listed? Dispute it immediately!
Misreported Information: Catch errors in balances or payment history quickly.
Spot something wrong? File a dispute with the credit bureau involved. Don't forget to include any documentation you have to back up your claim.
4. Level Up Security: Consider a Credit Freeze or Fraud Alert
Data breaches can be scary, but you have options to fight back! Here are two powerful tools to consider:
Credit Freeze: Think of this as putting a forcefield around your credit report. When you freeze your credit, lenders can't see your information. This makes it hard for identity thieves to open new accounts in your name.
If you freeze your credit, you can't apply for new loans like car loans or mortgages. You have to temporarily remove the freeze to apply for new loans. Luckily, all three bureaus offer free ways to easily freeze and unfreeze your credit online.
Fraud Alert: This acts as a warning flag to lenders. If you suspect fraud, a fraud alert will make them verify your identity before issuing credit.
It's a good first step, but not as strong as a freeze. An initial alert lasts a year, with an extended option lasting seven years. The best part? Placing a fraud alert with one bureau automatically sends the notification to the other two.
5. Become a Financial Bloodhound: Monitor Accounts Regularly
Don't let unauthorized transactions lurk in the shadows. Make it a habit to check your bank statements, investment accounts, and credit card activity every month. It's best to do this more often if possible. Become familiar with your typical spending patterns.
Spot something suspicious? Don't delay. Notify your financial institution immediately.
The quicker you act, the better chance you have of minimizing damage. The level of protection you receive depends on the card type, how long it takes you to report the issue, and your bank's policies.
4 More Shields in Your Security Arsenal
On top of the previous steps, consider these additional defenses to fortify your digital life:
1. Social Media Savvy: Guard Your Online Presence
Social media is a treasure trove for identity thieves. They can piece together personal details from your posts, making their scams more believable. Be mindful of what you share publicly and adjust your privacy settings to control who sees your information.
2. Phishing & Vishing: Don't Take the Bait
Phishing emails with suspicious links are a classic cyberattack tactic. Always be cautious. Never click on unknown links in emails, texts, or messages. Legitimate companies won't ask for your account details via email.
Vishing is similar, but uses phone calls instead. Scammers might try to scare you into revealing personal information or clicking a malicious link. Don't be pressured. If a call sounds suspicious, hang up and contact the company directly using a verified phone number.
Here's a golden rule: If a message is unexpected or sounds too good to be true, don't respond. Agree on a code word with family members to avoid falling victim.
3. Password Powerhouse: Unique & Strong Passwords
Imagine each of your online accounts as a vault. The key? A strong, unique password.
Avoid using the same password for everything! Create long, complex passwords that don't include personal details like birthdays or names. Consider using a password manager to help you create and store them securely.
4. Update & Backup: Stay Ahead of Threats
Most operating systems allow automatic updates for software and security patches. Enable them!
This keeps your devices protected against the latest vulnerabilities. Update your phone, tablet, and apps regularly as well. Finally, back up your device data frequently. In case of theft or compromise, you'll have a safety net to restore your information.
Bottom Line
While data breaches can be unsettling, knowledge is your best defense. Follow these steps to reduce your risk of identity theft and improve your financial management. Remember, staying vigilant and proactive is key to protecting yourself in the digital age.
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Disclosures:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
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This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.