14 Oct 2024 Staying Financially Secure in an Age of Data Breaches

Data security breaches are becoming increasingly common, and it’s always unsettling when your personal information is compromised. Whether you’ve recently been affected or simply want to stay ahead of potential threats, taking steps to protect your financial information is more important than ever. Here are some key actions to help safeguard your data:

Freeze Your Credit

Freezing your credit is one of the most effective ways to prevent unauthorized accounts from being opened in your name. Both my wife and I have done this as a precaution. A credit freeze blocks access to your credit report, making it much harder for fraudsters to take out loans or open credit accounts using your information.

To protect yourself, you’ll need to freeze your credit with all three major credit bureaus: Experian, TransUnion, and Equifax. If you need to apply for new credit—whether it’s a credit card, home loan, or even a new cell phone plan—you can temporarily lift the freeze using a personal PIN. If you’re unsure how to initiate the process, Clark Howard offers an excellent guide on how to get started.

Check Your Credit Regularly

Monitoring your credit is crucial for maintaining financial security. You’re entitled to a free copy of your credit report from each of the three major credit bureaus every 12 months. You can easily access these reports through AnnualCreditReport.com.

In addition to reviewing your credit reports, many banks and online services provide free tools to help you track your credit score and alert you to significant changes. Regular monitoring allows you to spot any suspicious activity early and take action.

Hire a  Credit Monitoring Service

Credit monitoring services can provide an extra layer of security, but their value depends on your personal needs and the specific service offered. These services often notify you of changes to your credit file and may provide peace of mind, but many experts argue that you can manage your own credit monitoring just as effectively.

If you’ve been part of a data breach and are offered a free credit monitoring service, it’s worth taking advantage of it in the short term. Once the free period ends, consider whether you want to continue paying for ongoing monitoring. If you’re diligent about freezing your credit, reviewing one of your credit reports annually, and monitoring your banking and credit card accounts, a paid service may not be necessary. However, if you prefer a more hands-off approach, credit monitoring might be a valuable option for ongoing protection.

Additional Tips for Staying Safe:

• Monitor Your Accounts: While freezing your credit prevents new accounts from being opened, it doesn’t stop unauthorized charges on existing accounts. Make it a habit to regularly review your bank and credit card statements for any unusual transactions.

• Stay Alert for Phishing Scams: After a breach, phishing attempts often increase. Be wary of unsolicited calls, emails, or texts requesting personal information. Only share sensitive details when you are certain the request is legitimate.

• Enable Two-Factor Authentication (2FA): Add an extra layer of security by requiring a second form of identification, such as a text message or authentication app, to log into your accounts. Even if your password is compromised, 2FA can prevent unauthorized access.

• Use a Password Manager: Password managers make it possible to generate and store strong, unique passwords for each account. This reduces the risk of hacking due to weak or reused passwords.

• Set Up Account Alerts: Activate real-time alerts for your banking and credit card accounts. These alerts can notify you about large withdrawals, unusual transactions, or any changes to your account, helping you quickly identify suspicious activity.

In today’s digital age, protecting your personal and financial information is more important than ever. If you have any questions or need assistance in implementing these measures, we’re here to guide you through the process and ensure your financial security.