The latest data breach uncovered may be one of the largest ever. 2.9 billion records belonging to millions of Americans have been lost. Many are now considering freezing their credit reports. Why?
Personal data of millions of Americans hacked in data theft
Millions of social security numbers were hacked after a massive data theft. Here’s how you can protect yourself.
You’ve probably heard about a massive data breach in which the Social Security numbers and other data of millions of Americans were compromised and could now be in the hands of hackers.
The data cache includes 2.9 billion records, including names, addresses, Social Security numbers and relatives dating back at least three decades, according to law firm Schubert, Jonckheer & Kolbe.
The San Francisco-based company has filed a class action lawsuit against National Public Data, which aggregates data to provide background research, alleging the company failed to adequately protect the information, allowing it to be stolen and offered for sale on the dark web.
Because of the data leak, people now face “years of constant surveillance of their financial and personal information, control and loss of rights,” according to the lawsuit, which was filed in U.S. District Court in Fort Lauderdale, Florida, and first reported by Bloomberg Law.
A record year for data breaches: Cybersecurity expert shows how to protect your privacy
How did this massive data theft come about?
According to the complaint, the cybercriminal group USDoD accessed the network of National Public Data (also known as Jerico Pictures, Inc., of Coral Springs, Florida) and stole unencrypted personal information. On or around April 8, 2024, the group published a database on the dark web that purported to contain information on approximately 2.9 billion people and offered it for sale for $3.5 million.
The plaintiff in this case, Christopher Hofmann of Fremont, California, was notified by an identity theft protection service that his information had been compromised and found on the dark web as a result of the data breach.
Should I freeze my credit?
If you are concerned about the integrity of your credit score due to theft of your personal information, you can have your credit reports frozen to protect against unauthorized borrowing.
This credit freeze, sometimes called a security freeze, prevents creditors from accessing your credit report, according to the U.S. General Services Administration.
“Everyone should consider having their credit report frozen with any major credit bureau because it’s free and it will prevent unauthorized people from opening credit cards or taking out loans in your name,” Odysseas Papadimitriou, CEO of personal finance site WalletHub, told USA TODAY.
A good reason to freeze your credit? If your Social Security number wasn’t affected by the data breach, “it was probably involved in a previous data breach or will be soon,” Papadimitriou said. “The sad reality is that our personal information is out there. Savvy consumers just need to make sure that if they have stolen personal information, they are a difficult target for scammers.”
A good place to start is to freeze your credit, he said. Once a credit freeze is placed, you’ll need to lift it if you want to open new accounts yourself, such as to buy a home or car or get a new credit card.
“It is easy to lift the ban if you actually want to apply for a financial product yourself,” said Papadimitriou.
How to freeze your credit
There is no charge for freezing your credit report, but you must contact all three major credit bureaus:
You can submit your request online, by phone, or by mail. According to the General Services Administration, agencies must freeze your credit report within one day if you submit it online or by phone. Freeze requests sent by mail must be acted on within three business days. Agencies must lift the freeze within one hour if you request a freeze lift online or by phone, and within three business days if you submit a freeze lift by mail.
Identity protection: How and why you should freeze your credit
Further steps to protect your identity after breaches
- Stronger passwords: Make your passwords stronger “by using unique, complex combinations of letters, numbers and symbols,” said Adrianus Warmenhoven, a cybersecurity expert at NordVPN, in a data breach alert sent to USA TODAY. “Remember to never use the same password for multiple accounts.” He also recommends a reputable password manager to securely store these stronger passwords.
- Two-factor authentication: Always opt for two-factor authentication, where you respond to a text message, email or push notification to log into your account. It can “add an extra layer of security to your accounts,” Warmenhoven said.
- Check your bank statements and credit reports: “After this breach, it is important to remain vigilant by regularly checking your credit reports, bank statements and online accounts for suspicious activity,” he said.
- Be careful of scams. You may receive more fake advertising messages via email, phone and SMS – “phishing” attempts to get your information. “If you notice an increase in unwanted calls and emails asking for personal information, remember: only respond if you have specifically asked to be contacted,” Papadimitriou said.
- Think about identity protection and more: As security breaches become more common, consider premium identity protection features, Papadimitriou says. WalletHub Premium offers identity protection and monitoring starting at $6.49 per month; the Premium+ plan ($11.99 monthly) also offers bank account monitoring.
Free identity protection measures offer only limited security, he said. “Measures such as freezing your credit data, regularly changing your passwords and enrolling in bank account and credit monitoring make it harder for criminals to misuse stolen information,” Papadimitriou said.
“Just as we all have to accept that our personal information is out there, we have to accept that we will eventually become victims of identity theft,” he said. “So identity theft insurance and recovery services are as important today as car insurance.”
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