Home Depot. JPMorgan Chase. Staples. UPS. Michaels. Sony. Last year did not go lacking in significant data breaches at some of America’s – and Atlanta’s – biggest companies.
A total of 783 data breaches exposed more than 85 million records, according to the Identity Theft Resource Center. In early 2014, security experts were already dubbing it the “Year of the Data Breach.”
So what does that mean for 2015?
The theft center’s data shows a more-than 27 percent increase in breaches between 2013 and 2014. At Equifax, we expect that trend to continue in the new year. Already in 2015, we have seen more companies announce they are investigating possible data breaches.
Data breaches are a lucrative way for criminals to get hold of information for identity theft. According to Javelin Strategy & Research, one in three people who received a data breach notification letter in 2013 later became a victim of identity fraud. Hackers may sell your information on the black market to other criminals looking to steal money, get access to health care or secure illegal employment.
Beyond the weeks or months it may take for an identity theft victim to regain his or her financial footing, the emotional impact of identity theft can have a lasting impact. Victims suffer emotional effects of financial stress, and feelings of loss of control or vulnerability. After all, identity theft is such an invasive yet invisible crime.
What’s a consumer to do when faced with near daily reports of lost or stolen information?
For starters, don’t panic. There are practices that can protect you from becoming an identity-theft victim: Lock up important documents; install anti-virus software on computers and smartphones; use unique passwords on websites you visit, and only shop with reputable companies.
The problem is that aside from always using cash or going completely off the grid, it’s impossible to not provide personal information at some point. But if you do open the newspaper one day and read one of your favorite brands has experienced a data breach, a few immediate steps can mitigate consequences.
First, hold onto any letter or email notifying you of the breach. Many businesses offer free identity theft monitoring services after a breach, and you should take advantage of it if they do.
Next, place a fraud alert or credit freeze by contacting the three credit reporting agencies – Equifax, Experian or TransUnion. Fraud alerts protect against new account fraud by requiring any credit grantor to take extra steps to verify your identity. A credit freeze prevents credit grantors from accessing your credit report altogether, so they would need to be lifted if you need to access credit for a major purchase down the road.
Also, contact the appropriate creditors or banks associated with the breached company and either close those accounts or take your bank’s recommended steps.
Continually monitor your bank account statements and credit reports to look for unusual activity, keeping in mind identity thieves may not use your personal information right away. Consumers are entitled under law to receive a free annual credit report from each of the three credit reporting agencies at www.annualcreditreport.com.
Some signs that you may have become a victim of identity theft after a data breach include failing to receive monthly bills, being denied credit, or receiving calls from debt collectors for accounts you don’t recognize.
None of us are impervious to becoming a data breach victim. Everyone from celebrities to your neighbors has been victimized. And so far, it looks like 2015 could be another “Year of the Data Breach.”
Before you start cutting up all your credit cards, devise a plan for what to do if you receive a data breach notice. Armed with the right knowledge, consumers can take control of their information, identity and finances.
Trey Loughran is president of Equifax Personal Solutions.
