What the Tech: Data breach
CHARLOTTE – Every few months, we hear about another data breach that exposes the personal information of millions of people. But the most recent discovery is massive. Security researchers uncovered a staggering 16 billion usernames and passwords posted online for criminals to use. If you have ever created an account online, your information could be included in that massive leak.
At the same time, experts are warning about increased cyber threats connected to global conflicts. The Department of Homeland Security issued a warning this week that all Americans should be on the lookout for cyberattacks that could steal usernames and passwords to access those accounts.
These threats are not just targeting government systems. Criminals are also going after individuals, using stolen data to commit identity theft and financial fraud. That is why now is the time to take a simple step that can stop them in their tracks. Freeze your credit.
A credit freeze prevents anyone from opening a new account in your name. That includes credit cards, car loans, and mortgages. It also means you will not be able to open new credit until you temporarily lift the freeze. But that process is easy to manage and can be done online within minutes. Freezing your credit does not affect your credit score and it does not prevent you from using your current credit cards. It simply blocks new applications from being approved.
To freeze your credit, you need to contact each of the three major credit bureaus. Equifax, Experian, and TransUnion all have secure websites where you can create an account and place a freeze. If you ever need to apply for a loan or credit card, you can log in and lift the freeze temporarily, then put it back in place once the application is complete.
Even with the rise in identity theft, most Americans have not taken this step. Only about ten percent of consumers have frozen their credit. Even fewer take action after being notified that their personal information was compromised in a breach. Many people rely on credit monitoring or alerts from services like LifeLock. While those tools can notify you of suspicious activity, they cannot stop a criminal from opening an account in your name. A credit freeze can.
Children are especially vulnerable. Since they are not using credit, it is easy for criminals to open accounts using a child’s Social Security number and go undetected for years. Parents can freeze their child’s credit with the same three bureaus, and experts recommend doing so as early as possible.
If you have a credit card, file taxes, or work with any company that stores your Social Security number, you are at risk. Freezing your credit is one of the strongest protections available. It is free, fast, and effective. And once it is done, you can have peace of mind knowing your credit file is locked from new account fraud.
