Freeze Your 3 Credit Reports Now!
Act now to freeze your credit reports to safeguard your money. Understand how recent large data breaches can hurt your finances.
Large Data Leaks at AT&T, Change Healthcare, and National Public Data
AT&T in March 2024 disclosed that information from 73 million current and former accounts appear to have been stolen and released into the dark web. The data from these accounts may have included customers’ full names, dates of birth, phone numbers, email and mailing addresses, and Social Security numbers.
Change Healthcare is the largest medical claims processor in the United States managing 50% of all claims. In early 2024, Change Healthcare divulged it was the victim of the theft of a significant amount of sensitive personal medical and financial data. The data included:
- personal information (Social Security numbers, driver’s licenses, state ID numbers, or passport numbers)
- health information (your doctors, assessments, medicines, test results, treatment history, and medical record identifiers)
- insurance information (primary and secondary health policies, insurers, member and group ID numbers)
- billing, claims and payment information (account and claim numbers, credit and debit card numbers, financial and banking information).
National Public Data, a large data broker, revealed in August 2024 a major theft and public release of approximately 2.9 billion records containing sensitive personal information. National Public Data stated the personal information stolen included full names, Social Security numbers, mailing and email addresses and phone numbers.
The leak of vast amounts of personal information poses significant risks to a retiree’s online and financial security.
Thieves could use stolen personal information to open new credit accounts such as personal loans, mortgages and credit cards. They would steal the money and leave the liability to the victims to pay.
Online hijackers could also takeover bank or investment accounts. Once in control, they could withdraw funds, or transfer money to other accounts.
Swindlers could use your stolen identity to claim your Social Security benefits. They could arrange to have your payments deposited into accounts to which they have access.
Con artists could use your identity to get jobs. They could leave you with the tax liability of their earnings.
Criminals could file fraudulent tax returns in your name. They could then claim your refunds.
Thieves could use stolen medical information to receive medical care, buy drugs, or submit false insurance claims. Victims could find themselves responsible for medical bills for services they never received.
Online hijackers could use stolen information to extort individuals, threatening to release sensitive data unless a ransom is paid. This can include personal photos, financial records, or confidential communications. Victims may feel pressured to follow demands to protect their privacy and reputation.
Criminals could use stolen information for phishing frauds. These scams can trick victims into providing added personal information, such as passwords or security codes. Phishing fraud can lead to further identity theft and financial fraud.
Freeze Your 3 Credit Reports Immediately. Take These Additional Actions to Safeguard Your Finances.
Freeze all three of your credit reports. Instruct each of the major credit reporting bureaus, Equifax, Experian, and TransUnion to freeze reporting on your credit data. Freezing credit reports prevents new accounts from being opened in your name by restricting access to your credit data. By law, there is no cost to you to freeze your credit reports. If it became necessary for you to apply for credit, you can lift the freeze temporarily and reinstall the freeze after you complete your application.
For an extra layer of security, place a fraud alert in addition to freezing your credit reports. A fraud alert obligates the credit reporting company to let you know when someone is asking for a report.
On a regular basis, look over your credit reports from all three major bureaus, Experian, Equifax, and TransUnion. You can get them from AnnualCreditReport.com as often as weekly for free. Look for unfamiliar accounts as well as incorrect information which should be disputed right away.
In addition to continually looking over credit reports, monitor your credit card, bank, and investment account statements at least once a month. Look for any suspicious activity.
Use a unique, complex password for each of their online accounts. Passwords should have at least 12 characters, mixing uppercase and lowercase letters, numbers, and symbols. A password manager can be helpful to securely create and store strong passwords. Enable two-factor authentication (2FA) whenever available.
Use up-to-date antivirus and anti-malware software on all devices. Install security updates as soon as they become available. Encrypt your home Wi-Fi network and use a strong password.
On social media, avoid posting personal information that could be used to answer security questions. For example, a mother’s maiden name or the name of your first employer are common security questions. Avoid putting that information on social media.
Keep a close eye on your cards during transactions and ensure they’re returned promptly. Consider using mobile payment options or contactless cards for added security. Be wary of card skimmers at ATMs and gas pumps, checking for any suspicious devices before inserting your card. Report lost or stolen cards at once to your bank or credit card company. Consider using virtual credit card numbers for online purchases to protect your actual account information.
3 Takeaways:
1-Recent large data leaks threaten your financial safety.
2-Immediately freeze all 3 of your credit reports.
3-Use strong passwords, anti-virus, 2FA, contactless and virtual credit cards, and other measures to protect your personal information.
Important Disclosures: Age Wisely Financial, LLC is a registered investment advisor offering advisory services in the States of Delaware, and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training.
The information on this site is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. The information on this site should not be relied upon for purposes of transacting in securities or other investment vehicles.
Age Wisely Financial does not warrant that the information will be free from error.
Meet the Author
Kevin Lam CFP® CPRS™
Serving retirees and folks age 60+ in planning their retirement income, wealth, safety and legacy. Helping guide them on their personal finance and life journeys with understanding, wisdom and care. With more than 45 years of finance experience, I am a flat-fee, advice-only financial planner based in Wilmington, DE working with clients virtually nationwide.
