7 Questions You Must Keep Asking About the Equifax Hack
Alicia Adamczyk
MoneySeptember 20, 2017
Vigilance is key.
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Last week Equifax announced that the personal information of 143 million
Americans was potentially compromised in one of the largest data breach’s in
U.S. history. Since then, millions of consumers have been left with unanswered
questions about how they may be impacted and what, exactly, the hackers got
away with.
While plenty of details are still cloudy, here’s what we know so far, and what
you can do to protect yourself.
What Accounts Could Be Compromised?
Hackers got away with a ton of information in the breach, and the consequences
could be far-reaching for many Americans. While many experts have advised
people to freeze their credit reports in the aftermath, actually many types of
accounts are at risk. “A credit freeze will only block the opening of a new
account,” says Howard Tischler, co-founder and CEO of EverSafe, which offers
identity theft protection services. “What about an existing account, or your
bank account, or investing accounts? The credit freeze only affects accounts
that have to do with credit.”
Potentially, fraudsters could:
Open credit cards in your name
Open utility accounts or in your name
Open loans (like payday loans)
Commit insurance fraud
Take out a mortgage in your name
Steal your tax return
Steal your Social Security benefits
Access your Medicare benefits
Access your investments (including your 401(k) and other retirement accounts)
Acquire a SIM card in your name
Essentially, think of any type of financial account you have or could have. If
you use your Social Security Number to sign up for or access it, it’s at risk.
How Long Should I Be Worried About This?
A long, long time. According to experts, it’s no longer a matter of if your
information was stolen, but when it will be used. “Unfortunately this is a
breach that could have lifelong impacts, which I don’t think anybody wants to
hear,” says Jocelyn Baird, an associate editor at NextAdvisor.
The magnitude of this hack means consumers will have to be proactive for the
foreseeable future about monitoring their credit, bank accounts, and identity.
Right now, hackers may be lying low, but as soon as it’s been long enough for
people to start feeling comfortable again (or for Equifax’s free credit
monitoring service to expire), they will likely strike.
“The data has a long shelf life,” says Tischler. “Things like your Social
Security Number, name, and birthday don’t change over time. So you should
always be on the lookout.”
And Baird points out that some things, like loans, may not appear on your
credit report right away. It’s all dependent on when the creditor reports them,
if they report them at all, or if they go into collections. Plus, not all
creditors report to all three agencies (TransUnion, Equifax, and Experian),
which is why it’s important to check each of your credit reports annually, at
least. You could miss things if you only check one or two.
In other words, proactively checking your credit reports, bank accounts, and
investments for fraud or suspicious activity should be part of your financial
routine in the 21st century.
What Are the Alternatives to Equifax’s Credit Monitoring Service?
If you are wary of using Equifax’s offered security measures (and who isn’?t),
there are other free services you can look into to monitor your credit. Credit
Sesame, for example, offers free credit monitoring and ID theft protections.
Additionally, Credit Karma and Clarity Money are useful (and free) apps that
track your credit reports and alert you when something is potentially wrong.
Your bank may also offer free credit alerts and changes to your score, so look
into that.
However, as Tischler pointed out, this hack will go well beyond your credit. So
consider purchasing more comprehensive security systems, such as LifeLock,
Identity Guard, or EverSafe, which monitor your reports from all three credit
agencies, but also comb the dark web for your information (the “dark web” is
where hackers and fraudsters sell your information) and keep tabs on your
investment and bank accounts.
“If you take advantage, a lot of them will offer 30 days free and that’s a good
way to get in and see what information they provide and monitor, and if you
like the website,” suggests Baird.
This can all be time consuming, but as Tischler says, the time and money
involved in rectifying identity theft is much more costly.
“People need to take responsibility for themselves,” he says. “Granted, you
would like Equifax to be better caretakers of your information, but at the end
of the day the information is out there.”
What Are the Consequences of Freezing My Credit Accounts?
Experts have recommended freezing your credit at the three main agencies
(Equifax, Experian, TransUnion), which prevents them from providing your credit
history to potential creditors (and therefore prevents scammers from using your
ID to open credit cards, take out mortgages, etc.). If you do this, the main
consequence is that you will not be able to immediately qualify for a new
credit card or apartment yourself—instead you’ll pay a fee (which varies by
state) at each of the bureaus to unfreeze your reports. Freezing your credit
will not impact your score.
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