How Consumers Can Clean Up After Equifax Disaster
Everyone needs to take precautions in today’s world of constant data breaches. Here are six steps to protect yourself.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Just in case you have been distracted by the natural disasters like the trio of Hurricanes Harvey, Irma and Jose, there is a different type of disaster affecting the financial lives of 143 million Americans. From mid-May to July 2017, hackers accessed sensitive information, such as names, addresses, Social Security numbers, dates of birth and even driver’s license numbers, from the database of Equifax, one of the three major U.S. credit agencies.
It’s never pleasant dealing with security breaches. I should know, as I have been a victim of identity theft myself. Someone used my Social Security number to obtain a cellphone with a major carrier. Among other measures I took, I had to go to the police department, complete an affidavit, provide documentation and get fingerprinted. Absolutely under no circumstance did I want to allow this individual or this situation to tarnish my credit score.
Here are six proactive steps consumers can take to protect themselves:
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. Don’t fall prey to e-mail messages.
Unfortunately, there will be some fraudsters who will prey upon consumers’ fears and concerns in the wake of the Equifax breach (and others). Take precautions with any email correspondence you may receive from Equifax that directs you to certain links. A better method would be to conduct your own Web search and follow any links that you find on its website. Just make sure you don’t make any typos, as there are some sites with look-alike names that could fool unsuspecting consumers.
2. Determine whether you were affected.
Visit the site set up by Equifax and click on the "Am I impacted?" link. You will be prompted to enter your last name and the last six digits of your Social Security number. If you are among those potentially affected, you can also visit the Federal Trade Commission’s site for facts about the breach and further tips on what to do.
3. Sign up for a credit monitoring service.
If you discover that your personal information has been compromised, consider signing up for a complimentary identity theft protection and credit monitoring service. If you do not already have such a service, I suggest you take Equifax up on its free offer. If someone tries applying for a credit card or loan in your name, you will be notified immediately. Some consumers prefer not to use the complimentary services that Equifax is providing because they fear they would be relinquishing any right to legal action. Equifax has said that the waiver doesn’t apply to claims related to the breach. Even so, if you’d rather go with someone else, there are plenty of other monitoring services from which you can choose. In fact, your current bank, credit union or credit card company may offer these services.
4. Monitor your accounts.
Take the time to review the financial transactions on your credit cards and debit cards. Be certain to report any unusual or suspicious activity. An ounce of prevention is worth a pound of cure. It’s better to be safe than sorry.
5. Change your passwords and log-in information.
You have to be one step ahead of scammers and fraudsters. Consider changing your passwords and log-in information. Whatever you do, don’t make it easy by using the same user ID and passwords for all of your accounts.
6. Consider a credit freeze with all three major credit bureaus: Equifax, Experian and TransUnion.
A credit freeze does not impact your credit score. A credit freeze restricts access to your credit report, which in turn makes it more difficult for fraudsters to open new accounts in your name. Lenders need to see your credit report prior to extending credit or approving a new loan. They will not approve a loan to anyone assuming your identity if they can’t check your credit. To freeze your credit, contact these credit bureaus: Equifax: 800-349-9960, Experian: 888 397 3742 and TransUnion: 888-909-8872. Visit the Federal Trade Commission to learn more about credit freezes.
When I was picking up the pieces after my Social Security number was stolen, I ended up contacting all three of the credit agencies to put a credit freeze on my account. I wanted to adopt a proactive approach to this situation.
Even if you aren’t a potential victim of the Equifax breach, security breaches have become a fact of life these days. With these proactive steps mentioned above, you can be in control of your credit score and your personal finances.
-
5 Vince Lombardi Quotes Retirees Should Live ByThe iconic football coach's philosophy can help retirees win at the game of life.
-
The $200,000 Olympic 'Pension' is a Retirement Game-Changer for Team USAThe donation by financier Ross Stevens is meant to be a "retirement program" for Team USA Olympic and Paralympic athletes.
-
10 Cheapest Places to Live in ColoradoProperty Tax Looking for a cozy cabin near the slopes? These Colorado counties combine reasonable house prices with the state's lowest property tax bills.
-
Don't Bury Your Kids in Taxes: How to Position Your Investments to Help Create More Wealth for ThemTo minimize your heirs' tax burden, focus on aligning your investment account types and assets with your estate plan, and pay attention to the impact of RMDs.
-
Are You 'Too Old' to Benefit From an Annuity?Probably not, even if you're in your 70s or 80s, but it depends on your circumstances and the kind of annuity you're considering.
-
In Your 50s and Seeing Retirement in the Distance? What You Do Now Can Make a Significant ImpactThis is the perfect time to assess whether your retirement planning is on track and determine what steps you need to take if it's not.
-
Your Retirement Isn't Set in Stone, But It Can Be a Work of ArtSetting and forgetting your retirement plan will make it hard to cope with life's challenges. Instead, consider redrawing and refining your plan as you go.
-
The Bear Market Protocol: 3 Strategies to Consider in a Down MarketThe Bear Market Protocol: 3 Strategies for a Down Market From buying the dip to strategic Roth conversions, there are several ways to use a bear market to your advantage — once you get over the fear factor.
-
For the 2% Club, the Guardrails Approach and the 4% Rule Do Not Work: Here's What Works InsteadFor retirees with a pension, traditional withdrawal rules could be too restrictive. You need a tailored income plan that is much more flexible and realistic.
-
Retiring Next Year? Now Is the Time to Start Designing What Your Retirement Will Look LikeThis is when you should be shifting your focus from growing your portfolio to designing an income and tax strategy that aligns your resources with your purpose.
-
I'm a Financial Planner: This Layered Approach for Your Retirement Money Can Help Lower Your StressTo be confident about retirement, consider building a safety net by dividing assets into distinct layers and establishing a regular review process. Here's how.
