Peak Alert- Equifax Data Breach: An Overview and Action Steps
Dear Valued Clients,
In recent days, a few Peak clients have inquired about the recent Equifax data breach that was announced on September 7th. In total, the personal data of 143 million consumers was illicitly acquired from Equifax’s core consumer and commercial databases. The information stolen included dates of birth, Social Security numbers, addresses, and other personal information.
Equifax has established a tool that can identify whether or not your data was affected by visiting their website. However, before doing so, keep in mind that enrolling in this program may prevent you from participating in a class action lawsuit. In addition to unwittingly opting out from legal action, several reputable technology outfits have reported bugs and errors within the system and, therefore, have not endorsed its efficacy, so please be aware of these potential drawbacks.
Whether you utilize the avenue provided by Equifax to determine how the breach might affect you, there are a number of other steps you can take to safeguard your information and monitor your credit. You can always (and always should) check your credit card and bank activity on line. If someone is using your credit card or withdrawing money from your bank, you’ll know right away and you can limit the damage. You should also systematically check your credit report. Remember that the Fair Credit Reporting Act entitles you to a free credit report from each of the three credit reporting agencies (Experian, Equifax, and Transunion) every 12 months. Essentially, you can request your credit information from one of the agencies every four months on a rotating basis to keep you up to date as to the contents of your credit report.
Additionally, you can take more significant steps to secure your credit by instituting a temporary freeze, which basically disallows anyone from establishing a credit line using your personal information. Depending on the agency, you can manage this process online and, for a small fee, you can turn this freeze on an off for limited periods of time. Equifax has agreed to waive all fees associated with freezing your credit files until November 21st and will reimburse anyone who paid for the service since September 7th.
Some consumers who have instituted the steps of applying a credit freeze in the past understand that lifting a freeze in a timely manner can, at times, be a frustrating experience-especially when you are legitimately applying for credit. In these instances, consumers are required to go through several layers of verification to unlock their credit report. Sometimes these efforts are initially unsuccessful. These episodes are not meant to discourage you from pursuing this channel, but rather to set expectations.
Additionally, you can institute a more aggressive response by requesting a credit lock from each of the three agencies. Generally, this must be done in writing and lasts for up to seven years. Just keep in mind that this option may make financial transactions more difficult as your credit will be blocked and unavailable to companies with whom you want to do business.
Identity theft protection services, such as LifeLock, are also available. However, this safeguard comes at a cost and does not guarantee that your personal information will not be stolen. This service is another method amongst the others described to protect yourself.
Most people are unaware that the Equifax data breach actually occurred on July 29. As a result, consumers have been vulnerable for six weeks. Those who maintain a system of periodically applying the tools we’ve described are least likely to be adversely affected. As such, setting up your own personal protocol for protecting yourself is perhaps the best, most inexpensive, and headache free path to credit monitoring.
As always, if you have questions, the Peak team is always available.
Regards,
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