Asheville – You receive an email or letter from a company you do business with, informing you that their data has been breached. You’re busy and think you should look into it later. Then one day, you get a call from a local number saying something like, “We are from cardmember services, and we saw that someone is trying to get credit cards in your name. We wanted to warn you.” They then proceed to read back your birth date, social security number, and all of your credit card numbers along with the balances. They ask you to verify this information so they can confirm which accounts are truly yours.
How Do You Know It’s Scammers?
The first tip is that it is a local number; no creditor will use a local number. Secondly, the caller likely has a foreign accent. Most importantly, no credit card company will ask for or provide account numbers, PIN numbers, or request personal information other than your address. It is crucial that you do not answer these questions or verify the account information. These are scammers!
Scammers cost North Carolinians $197.7 million in the first three quarters of 2024, and according to one identity protection site, over 1,000 companies have their data breached each year. The hackers then sell your personal information on the dark web. Surprisingly, children are targeted 51 times more than adults. Most parents don’t even realize their children’s identities have been stolen until they turn 18 and attempt to obtain credit.
Some companies that have experienced data breaches include Marriott’s Starwood Properties (exposing 500 million people), Groupon, AT&T, Loan Depot, Evolve Bank, HealthEquity, and various health, financial, and insurance institutions. Even the identity protection company LifeLock has had data breaches.
How To Protect Your Data
You can now check your credit as often as you like for free at AnnualCreditReport.com. This will show your credit report from all three major credit bureaus: Equifax, Experian, and TransUnion. Look for any unfamiliar accounts or activity. Make it a habit to check every month or so.
If you discover that scammers have your personal information, here’s what you should do immediately.
Contact the Credit Bureaus
First, contact one of the three major credit bureaus and request a fraud alert on your credit report. They will notify the other two bureaus. This makes it harder for scammers to open new accounts in your name.
Each credit bureau also has an option on their website to “freeze” your account. This prevents creditors from accessing your credit report, which stops new accounts from being opened in your name. You’ll need to contact each bureau separately to freeze your credit. When you wish to apply for credit, you can simply unfreeze the accounts and then refreeze them afterward. It’s a bit more complicated to place a freeze on your children’s accounts.
Contact the Companies Involved
Even if no fraud has yet been committed against your bank account, credit card, or other financial information, call the bank or institution immediately. Ask them to flag or close the affected accounts and replace your cards. Open new accounts if necessary.
Report Identity Theft
The Federal Trade Commission oversees theft and fraud in the U.S., and you can report fraud on their FTC.gov website. If your identity has been stolen, report it to the FTC at IdentityTheft.gov. They can help you create a personalized recovery plan.
Change and Strengthen Your Passwords
If your online accounts are compromised, immediately change the passwords. Make them strong and unique. Enable two-factor authentication wherever possible. Update passwords on any accounts that could be vulnerable.
Monitor Your Accounts
Keep an eye on your bank accounts, credit card statements, and other financial accounts for unauthorized transactions. The sooner you catch suspicious activity, the faster you can act.
File a Police Report
If someone has used your identity for criminal activity, you may need to file a report with your local police department. A police report can also help support claims with creditors and other institutions.
Contact the IRS
If you suspect someone is using your Social Security Number for employment or to file taxes, notify the IRS right away by visiting irs.gov.
Consider Identity Protection
Identity protection companies vary, so do your own research. Some of these services even protect the deed to your home and title to your car. Inquire whether they have experienced data breaches themselves. If a company has sent you a notification that your data has been exposed and offers identity protection for free, take advantage of that offer.