How to Respond to a Data Breach
PURE Staff
Do not underestimate the severity of major breaches that have made recent headlines. Between banks, web service providers, social media platforms (think LinkedIn’s 2022 data breach that exposed more than 700 million users), and utility companies (think T Mobile’s breaches in 2021 and 2023, totaling 77 million exposed), it is reasonable to assume that your confidential information may have been compromised.
In events like these, cybercriminals may gain access to bank accounts and credit card numbers, your social security number, birthday, addresses and even driver’s license information. This creates the serious potential for a broad range of fraudulent activity, including:
- Accessing your existing lines of credit and bank accounts
- Opening credit cards, bank accounts or lines of credit in your name
- Filing a fraudulent tax return in your name before you file for yourself
- Launching phishing attacks, fraudulent emails that appear to come from legitimate sources and try to convince you to provide sensitive information
In 2023, there were more than 3,000 known data breaches, 13,000 reported identity crimes and 350 million whose data was exposed.
Under normal circumstances, you should request and review your credit reports on a regular basis and consider signing up for a credit monitoring service.
When to freeze your credit reports
After a major breach, it is also advisable to place a freeze on your reports with all four credit bureaus. Here is what you need to know about this course of action:
- Freezing your credit report restricts access to your report by anyone—including you—who is attempting to open a line of credit or take another action that requires a credit pull.
- In some states, freezing your reports is free, but in others, there is typically a small cost associated with the action.
- Freezing your reports does not affect your credit score or prevent you from obtaining your free annual credit report that is guaranteed to you by law.
- If you want to apply for a credit card, mortgage, new job, etc., you’ll have to manually lift the freeze. Costs and lead times vary, so check with the credit reporting agencies in advance.
- After you request the freeze, each credit reporting company will send you a confirmation letter containing a unique PIN (personal identification number) or password. You will need this information if you choose to lift the freeze.