September 15, 2024
Tyler Hewes, CFP®
A Play in Five Acts
Who steals my purse steals trash; 'tis something, nothing;
'Twas mine, 'tis his, and has been slave to thousands;
But he that filches from me my good name
Robs me of that which not enriches him,
And makes me poor indeed.
Othello, Act III, Scene iii
In Shakespeare's Othello, Iago reflects on the nature of theft, remarking that stealing material wealth, like a purse, is insignificant compared to the theft of one's good name. While money can change hands countless times, the loss of your personal identity is far more damaging and far harder to recover. In our current age, where the identities have been memorialized in 1s and 0s on servers the world over, the weight of Iago’s lines are felt heavier than ever before. The recent breach of sensitive information held by National Public Data has resulted in the theft of something far more valuable than our individual purse, it is a theft of our good name.
The breach, revealed to be over 2.9 billion personal records, including millions of social security numbers, has created, for many, potential vulnerability to identity theft and financial fraud. While the potential consequences of the breach are serious, taking proactive steps can help limit your exposure and provide peace of mind.
Prologue: How Did We Get Here
In August, National Public Data (NPD), a data broker agency with a vast repository of sensitive personal information, including names, addresses, social security numbers, and financial details, reported that they fell victim to a significant security breach perpetrated by “a third-party bad actor.” In a bit of hubristic irony that I suspect would make Shakespeare unabashedly giggle, NPD describes themselves as “a public records data provider specializing in background checks and fraud prevention.”
The breach highlights the need for constant vigilance around our personal data and serves as a reminder that in our shared digital world, the value of protecting our identity is as important as the need to safeguard that of any physical asset.
Act One: How to Check if You’ve Been Affected
Upon learning about where to investigate if you had been compromised, lo and behold I found that multiple members of my family had been exposed, including both of my parents. Imagine my surprise to see the address of every home they/we lived in for the past 35 years listed under my mom and dad’s names, in addition to their landline, cell phone numbers, and email addresses!
Given the scope of the breach and the type of personal data in question, it is important to determine if your information and the information of your family members have been compromised. Luckily there are multiple reputable websites that provide you with the ability, for free, to check your status:
npdbreach.com - provided by Atlas Privacy, an online privacy company that works to remove their client’s data from data brokers.
npd.pentester.com - provided by Pentester, a cybersecurity technology firm that tests websites for potential risks and exposures.
If you find that your information has been compromised or there are irregularities on your credit report, it is important you take preventative measures as soon as possible.
Act Two: Steps to Protect Yourself and Your Data
In the wake of this breach and the threat that similar breaches may occur (or come to light), there are several steps you can take to safeguard your personal and financial information:
Create an Online Social Security Account
Take control of your Social Security account by setting up your own online Social Security account through the General Services Administration’s Login.gov website. This will prevent someone else from setting up an account in your name, ensuring that you, and only you, can access your personal statements, update your address, and manage other sensitive information securely.
Freeze Your Credit
Freezing your credit is one of the most effective ways to prevent identity theft. When your credit is frozen, no new credit can be taken in your name, and no one can access your credit report to open new accounts. By blocking outside actors from being able to utilize your credit, it makes it that much harder for identity thieves to do damage to your good name. To initiate a freeze, you must separately contact each of the credit bureaus:
Equifax – visit equifax.com or call 800-349-9960.
Experian – visit experian.com or call 888-397-3742.
TransUnion – visit transunion.com or call 888-909-8872.
Each of the bureaus will require you to provide personal information to verify your identity. Once your credit is frozen, you will receive a Personal Identification Number (PIN)/password that can be used to temporarily lift the freeze if needed. Note: none of the bureaus charge to place a freeze, but there may be a nominal charge to temporarily unfreeze your credit, should it be needed.
Set Up Alerts
Most institutions now provide real-time alerts, delivered conveniently via email or text message, and highly encourage you to turn on all the alerts that are available. It is better to be pinged about everything (including account logins, transactions, new accounts being linked, any changes to your contact information, etc.) than to miss out on the opportunity to stop fraud before it ever occurs. In a world where time is often the deciding factor between averting or suffering financial loss, active alerts can serve as an indispensable first line of defense.
Review Your Bank and Credit Card Transactions
Constant vigilance is our greatest ally in the early detection of fraud. Make it a regular practice to review your bank and credit card statements, paying close attention to even the smallest charges. What may seem insignificant or innocuous could well be the first sign of compromised account information. At the first hint of suspicious activity, it is imperative to contact your bank or credit card issuer. Swift action can prevent more serious breaches of your financial security.
Another step is to regularly monitor your credit for any unauthorized activity or unknown accounts. By law, you are entitled to a free credit report from each of the three major credit bureaus once every 12 months. You can request reports from each agency by visiting annualcreditreport.com.
Enroll in a Credit Monitoring Service
Credit monitoring services offer an additional layer of protection by keeping a constant eye on your credit reports for signs of fraud. These services alert you to any suspicious activity, such as new accounts being opened in your name. While most monitoring services have a fee, many of them offer a free trial so you can explore which option and service best suits your needs:
CreditKarma - Intuit’s free online service that provides credit scores, reports, and monitoring.
Experian IdentityWorks - Offers daily credit monitoring from all three bureaus, dark web surveillance, and identity theft insurance (for a fee).
Equifax Complete - Provides alerts about key changes to your credit reports, identity restoration support, and up to $1 million in identity theft insurance (for a fee).
TransUnion Credit Monitoring - Includes credit monitoring, instant alerts, and access to your credit report and score (for a fee).
Act Three: Reporting Identity Theft
If you discover that your information has been used fraudulently, it’s crucial to report the theft as soon as possible:
Reporting to the Federal Trade Commission (FTC)
In the unfortunate event that you fall victim to identity theft, the FTC stands ready to assist. Begin by visiting identitytheft.gov, where you can report the theft and create a personalized recovery plan. The FTC will guide you through critical steps such as placing fraud alerts on your credit reports and closing any fraudulent accounts that may have been opened in your name.
Place a Fraud Alert on Your Credit File
Placing a fraud alert on your credit file is an additional step to freezing your credit and, unlike placing a freeze (where you have to contact each of the three major credit bureaus individually), you need only contact one of them to set an alert, and it will be automatically applied across all three. An alert warns potential creditors to verify your identity before extending any new credit in your name.
File a Police Report
Filing a police report is invaluable when dealing with creditors and financial institutions, as it provides official documentation that you were the target of fraud.
In California, local law enforcement is required to take an identity theft report, even if the crime occurred elsewhere.
Depending on the municipality, you may be able to file online or may need to file the report in person at the nearest police station. It will be important to bring any supporting documents, such as fraudulent credit card statements or collection notices, to expedite the process.
Regardless of where you file, be sure to note the report number, as it will likely be required by your creditors during the recovery process.
Contact Your Financial Institutions
If you suspect your personal information has been compromised, please inform a member of the WEIL team we can place an alert on your account(s). We recommend you also reach out to your bank and credit card companies immediately to alert them of the breach. Most financial institutions have protocols in place to assist you with the following key actions:
Close or Freeze Compromised Accounts: Your institutions will help you close any accounts that have been compromised, or alternatively, place a temporary freeze on your account to prevent further unauthorized activity.
Dispute Fraudulent Charges: Most institutions offer fraud protection and will guide you through the process of disputing any unauthorized transactions. Keep detailed records of these interactions, including dates and the names of representatives with whom you speak.
Act Four: Proactive Measures Going Forward
While the steps above will help you respond to the current circumstance, there are additional steps you can take to fortify your financial security. Consider implementing one or more of the following proactive measures:
Secure Your Personal Information
Exercise caution when sharing your personal details, both online and in-person. Strong, unique passwords, denuded of easily guessed numbers or words for each of your accounts is a good first step. Reusing passwords across multiple accounts is easy (and prevents the dreaded “I Forgot My Password” spiral), but it can create a cascade of risk, with one breached password putting several accounts in danger.
Wherever possible, enable two-factor authentication on all your accounts. This additional layer of security requires not only a password but also a secondary form of verification (typically requiring a smart phone), significantly reducing the likelihood of unauthorized access.
Use a Password Manager
Managing complex passwords can be difficult; a password manager can simplify this process.
Services such as LastPass and 1Password offer secure, encrypted storage for your passwords (for a monthly fee). These tools not only store your passwords but also generate robust combinations to help you avoid reusing passwords across accounts. Google One and Apple also offer password storage and generation, though both require use of their specific technology and/or web browsers.
Identity Theft Monitoring and Insurance:
Identity theft monitoring services are an additional layer of protection that come with a cost but a corresponding level of increased security. These services track your personal information across a variety of channels, including credit reports, dark web forums, and public records. Should any suspicious activity arise, you are alerted immediately, giving you the chance to take action.
Many of these services can also include identity theft insurance (for an additional fee), which can provide financial relief, including legal fees and lost wages.
Experian IdentityWorks - provides comprehensive monitoring and alerts for unusual credit activity. Their premium plan offers identity theft insurance of up to $1 million, covering various restoration expenses.
LifeLock by Norton –includes alerts for new account openings and even stolen funds reimbursement. Their higher-tier plans provide additional coverage, including $1 million of identity theft insurance.
IdentityForce - With two options and pricing levels, this service offers identity monitoring, credit report tracking, and full restoration services. The higher-tier plan offers up to $1 million in insurance coverage.
Stay Informed and Remain Vigilant
Sadly, data breaches are no longer rare occurrences. Keeping yourself informed about the latest developments in potential threats (including scams and frauds going around) and best practices for digital security is key. National publications, such as the New York Times, LA Times, and Wired magazine, are excellent sources of information and best practices, as is the FTC’s website.
Exercise caution on emails and text messages. Confirm email addresses before replying to anything unprompted, and do not click on links or reply to suspicious emails or texts (remember, the IRS and other Federal agencies will never email or text you, they only send letters via USPS). Report any such communications as Spam and move them directly to your junk folder. A good rule of thumb is if in doubt, delete the email…if someone needs to get in touch with you, they’ll reach out again.
Act Five: The Conclusion
The loss of personal data in a breach like this is more than just the theft of information; it's an attack on our peace of mind. Just as Iago understood the irreplaceable value of reputation, we must recognize the importance of protecting our personal information. By taking prudent preventative measures and implementing an ongoing monitoring plan, proactively freezing your credit, turning on alerts for all your accounts, using unique passwords, and deploying two-step verification (where available), you can significantly reduce the risk to your financial well-being.
The WEIL team is dedicated to being aware of the latest threats to our clients, ourselves, and our loved ones. We are here to help you navigate security threats and be a resource as you take steps to protect yourself financially. We believe in the value of sound financial planning; ensuring the security of your identity and data is one of the soundest recommendations we can provide. If you have any questions or would like to discuss how best to protect your good name, please feel free to reach out to any member of the WEIL team.
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