Another company has suffered a breach of data. Another letter arrives in the mailbox notifying that your data has been compromised. It feels as if more and more similar letters are arriving, but does it really matter anymore? Is what the company saying in this letter enough to protect your information?
While a data breach can feel overwhelming, taking these quick steps can greatly reduce the risk of identity theft:
- Identify what information has been exposed, such as passwords, Social Security numbers, financial records, medical information, or children's personal data.
- Immediately change passwords for accounts and enable multi-factor authentication.
- Lock credit cards, especially those that are not used as often.
- Watch for suspicious emails, texts, or phone calls pretending to help with the breach.
- Monitor bank statements, insurance records, and credit reports for unusual activity.
One of the strongest protections for adults is placing a credit freeze with all major credit bureaus. This prevents new loans or credit cards from being opened in your name without your permission. Information about freezing credit online for free through each bureau can be found here:
To place a freeze, create an account with each bureau, verify your identity, and follow the prompts to freeze your file. Save the PIN or password provided to temporarily lift the freeze to apply for credit later. Adults who discover fraudulent activity should file a report with the Federal Trade Commission (FTC) at IdentityTheft.gov. The website walks victims through creating a recovery plan, generating official reports, and documenting identity theft for banks, creditors, and law enforcement.
Children are especially vulnerable after a breach because identity theft involving minors can go unnoticed for years. Parents or guardians should first check whether the child already has a credit report, since children normally should not have one. If a report unexpectedly exists, it may indicate fraud. A child's credit can be frozen through Equifax, Experian, and TransUnion by submitting proof of identity for both the child and the parent or guardian. Each bureau provides specific instructions for minor freezes on their website.
Parents should watch for warning signs such as collection notices, government mail, or medical bills addressed to the children. If you suspect misuse of a child's identity, file an FTC identity theft report at IdentityTheft.gov and keep all reports, correspondence, and freeze confirmations. Teaching children to protect personal information online and limiting the amount of sensitive data shared with schools, apps, and organizations can help reduce future risk.
Being proactive about data protection and protecting your privacy is the first step, but reacting quickly when your data is compromised is essential to your financial future.