What the Equifax Breach Means for Consumers and How to Take Action

The Federal Trade Commission recently reached a settlement with Equifax over a data breach that has impacted around 147 million Americans. The popular credit monitoring agency admitted to a leak that included social security numbers, addresses, birth dates, driver’s license numbers, and credit card information. Nearly half of all adults in the United States have been affected and are therefore eligible to file a claim in the settlement to receive compensation from Equifax.

What does the Equifax breach mean for you?

The first thing you should do is check to see if your information has been impacted by this breach. On the official Equifax Data Breach Settlement website, you can enter your last name and the last six digits of your social security number to see if your data was part of the breach. Make sure you are using the official, government approved website before entering any personal information. If you determine that your data was indeed breached, you have a few things to consider. The settlement includes three options for compensation:

– A one-time payment of up to $125

– 10 years of free credit monitoring services

– A one-time payment of up to $20,000 if you can prove you spent time or money on identity theft services due to the data breach

In order to receive any of the above compensations, you must fill out the application on the website by January 22, 2020. You can also choose to opt out of the settlement. In order to officially opt out, you must formally exclude yourself by November 19 of this year.

It is important to consider how this breach could impact you before you decide on a settlement option. Despite the low payout amount, consumers should not take this data breach lightly. Once your private, identifying information has been leaked, it can spread indefinitely. Data hackers can sell and re-sell your information forever. If your information is actively being used, $125 is not even close to enough money to cover the cost it will take to repair and protect your finances. Equifax has allotted $425 million for financial compensation—meaning actual, per person payments will likely be much less than the $125 listed. Early applicants will have a better chance of getting the full amount.

Because of this, financial advisors are suggesting that consumers opt for the free credit monitoring or exclude themselves from the settlement all together. Credit monitoring and identity theft services could serve you much better than $125 in the unfortunate event that your information is being sold on the dark web. Opting out of the settlement would allow you to sue Equifax as an individual, giving you more legal power to recuperate your financial losses in the event of a significant identity theft situation. Additionally, if your information has been seriously compromised and you have experienced significant financial loss due to identity theft, it is important to speak with a NJ lawyer who has experience with identity theft.

The one thing you can and should do right away in response to the Equifax data breach is to start practicing better cyber hygiene. Hackers look for more than just social security numbers and credit card information. Oversharing other personal information can be just as costly online. To protect yourself from identity theft online, these three steps can help keep your information secure:

1. Social Media: Make sure all of your social media accounts (Facebook, Instagram, Twitter, LinkedIn, etc.) are private so the only people who can see your information are those you choose to connect with. Even if your account is private, carefully consider what you share. Hackers can use your hometown, your birthday, your employment history, and other pieces of information commonly shared on social media platforms to acquire your private data.

2. Data Check: Google your name and city and see what pops up. If your full name, address, e-mail, or other personal information appears, this should make you wary about sharing additional information online. The more free information a hacker has access to, the easier it is for them to assume your identity to gather critical data about you, such as your social security or credit card number(s.)

3. Passwords: Get into the habit of changing all of your online passwords regularly and never use the same password twice. If a hacker is able to breach one account, they will try the same password over and over again. This can be disastrous for those who use the same password repeatedly.

With the global transition to online platforms, the way we protect our personal information and financial data has to change. Unfortunately, events like the Equifax data breach are becoming more and more common. Learning how to protect yourself and your personal information from hackers could save you a lot of time, money, and emotional distress. Minimizing the amount of personal information available online can be your first defense against cyber hackers.

 

 

A Relative Stole My Child’s Identity: What Are My Options in New Jersey?

Having one’s identify stolen is stressful, and remedying the breach is complicated and time-consuming. This is all doubly true when it is not your own identity that is stolen, but rather your child’s. Worst of all: realizing that you are one of the thousands of Americans whose own relative has stolen your child’s identity.

6 in 10 of the children who are victims of identity theft know their perpetrator well. By contrast, a scant 7% of adult victims of identity theft were acquainted with the person who had stolen their information.

While it might seem obvious to you that your kindergartner couldn’t possibly have taken a weekend trip to go scuba diving without you noticing, that won’t make it any easier for you to straighten out the chaos left in the wake of child identity theft; regretfully it’s just as complicated as adult identity theft.

A child’s SSN can be even more valuable than an adult’s; after all, a child’s identity is a blank slate. That means it can be used as part of a con to seek government benefits, to open lines of credit or bank accounts, and to rent housing without conflicting information showing up on the radar.

The following guide will take you step by step through the procedure you’ll need to follow once you’ve discovered that your child’s identity is being used illegally.

1. Contact The Authorities

If your child’s identity has been stolen by a relative, you may be feeling conflicted about reporting your relative to local authorities. Even when we’re betrayed by a family member in such a reckless and selfish manner, many of us would rather not see a loved one prosecuted.

Unfortunately, credit institutions will require a police report detailing the crime of identity theft before they’ll permit you to rectify your child’s good name and credit standing. You must set aside your feelings for your family member and allow the law to intervene.

Before you contact the police, prepare yourself for the reality that is soon to follow. Turning in your loved one means accepting the likelihood that they’ll receive a felony conviction. New Jersey Identity Theft sentencing guidelines suggest prison terms ranging in length according to the severity of the financial damage and hefty fines to go with them.

2. Place a Fraud Alert

The next step is contacting one of the credit reporting companies and placing a fraud alert. The one you choose is supposed to alert the other two, but if you want to be sure this happens, it would be wise to follow up and make sure it’s been done.

Here are the contact numbers for the 3 major credit bureaus:

Experian (TRW) 888-397-3742

TransUnion 800-680-7289

Equifax 800-525-6285

3. Submit a Report to the FTC

Complete the form online here. Once this form has been submitted, you’ll be given a full report on your identity theft and an individualized recovery plan. This report serves as proof of your child’s identity having been stolen, so under no circumstances should you skip this step.

What’s Next?

Once the above steps have been completed, you’ll begin the potentially lengthy process of contacting each institution or individual who has been duped by the con.

Contact the fraud departments for each point of theft and inform them that your child is a minor who is not legally permitted to enter into contracts. Attach a copy of your child’s birth certificate, if necessary.

Close any accounts that have been opened in your child’s name. When you contact a business or bank who lent money or extended credit to the thief, request letters confirming that these accounts do not belong to your child. This letter needs to declare your child free of these debts and confirm that the accounts have been removed from your child’s credit report.

Consider a Child Credit Freeze

Finally, you may consider freezing your child’s credit until they are old enough to use it themselves. A credit freeze simply restricts access to your child’s file, meaning it’s much more difficult for a thief—related to you or a total stranger—to open new accounts in your child’s name.

Contact a Credit Repair Professional

If you’ve worked your way through all of the steps above or got stuck on one of them, reach out to a NJ credit repair attorney. Repairing your child’s credit now is crucial to their financial wellness later in life.