According to Huntress.com, the number of data breach notifications has jumped by 211 percent between 2023 and 2024 and surpassed 1.3 billion in 2024.1 Unfortunately, sooner or later, you might receive a data breach notification.
What is a data breach? — A data breach occurs when sensitive information — such as personal or financial data — is accessed by unauthorized parties or bad actors.2
If you are notified by a company that a data breach compromised your confidential information, take quick action by following these steps.
#1: Know what data was exposed
Read the notification carefully to check what information was exposed. Often letters are sent out several months after the incident, so act fast to protect data that might be used by cyberthieves or end up on the dark web, including:
a) Your full name
b) Email addresses
c) Your date of birth
d) Biometric data or health information
e) Passwords and passcodes
f) Residence or mailing address
g) Your social security number
Your fraud risk depends on what type of information was compromised. If only your name and email address are stolen, the consequences might be additional spam or phishing. But if your Social Security number is compromised, you could become a victim of identity theft or credit fraud.
#2: Secure your accounts
Immediately update all passwords and PINs for your banking, credit card and financial/investment accounts. Once personally identifiable information (PII) is accessed, criminals may retrieve other information. Remember that strong passwords are one of your best protections.
a) Don’t reuse passwords for multiple accounts to reduce the chances that a thief can access several accounts. Each of your online accounts should have a distinctive password.
b) Consider using a password manager, which generates unique passwords for you. You only have to remember one master password. Free and paid versions are available.
c) Enroll in two-factor authentication whenever possible. It provides an extra measure of security when you login to your accounts by requiring you to receive a confirmation code via text message or email to verify your identity. This makes it harder for criminals to access your accounts.
#3: Monitor your financial accounts and credit reports
Look for any unusual activity in your bank and financial accounts and set up alerts that will notify you of any potential fraud or scam activity. Check your credit report for anything that might indicate credit fraud or identity theft. If you notice credit card or loan accounts you did not create, notify one of the national credit agencies to make corrections. You can visit AnnualCreditReport.com to access your reports from all three national credit bureaus (Experian, Equifax and TransUnion) at no charge. Often companies will offer free credit monitoring services for a specified period in your notification letter. Call the company if it is not offered.
#4: Consider adding a fraud alert with all three credit bureaus
Fraud alerts signal to lenders who process credit inquiries or applications in your name that you might be a victim of fraud or identity theft. They are instructed to take extra steps to ensure proper verification of your identity to complete the inquiry process. Adding an alert with one credit bureau automatically duplicates it at the other national credit agencies. Fraud alerts remain in place for a year and can be renewed. Extended fraud alerts can also be requested for up to seven years.3
#5: Consider freezing or locking your credit file
A security freeze is free and will reduce access to your credit report at a specific credit bureau. You have to contact all three credit bureaus to set up a complete freeze on your report. A credit freeze is more inconvenient than a fraud alert, since you will need to unfreeze it to apply for a credit card or loan. However, it serves as another line of protection from criminals and scammers.
You can also lock your credit file with the credit bureaus. This is typically a paid service such as Experian’s CreditLock service.
#6: Consider locking your Social Security number
The Social Security Administration (SSA) offers a Self-Lock service. You can set up an account with E-Verify.gov which can prevent someone from using your identity to secure employment or changing your personal information online or over the phone. However, you will need to unlock it if you apply for a job.
Unfortunately, exposure in a data breach will also require you to be on alert for phishing attempts and scams as cybercrime continues to be a growing problem. But in the event of a data breach, acting quickly to take these steps can protect you and mitigate the potential complications.
Sources
1 https://www.huntress.com/blog/cybersecurity-statistics
2 https://corporatefinanceinstitute.com/resources/data-science/data-breach/
3 https://www.experian.com/blogs/ask-experian/what-is-an-extended-fraud-alert/
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