Recent Data Breach Potentially Compromised Millions of Social Security Numbers.
August 16, 2024
A recent significant data breach has potentially compromised a massive number of Social Security numbers and other personal information. Here is what you need to know about the breach and proactive measures you can take to protect your identity.
The hacking group known as USDoD claims to have stolen personal records of approximately 2.9 billion people, including Social Security numbers, from National Public Data, a Florida-based background check company. This data breach reportedly includes full names, addresses, birthdays, and phone numbers.
With Social Security numbers and other personal details compromised, individuals are at increased risk of identity theft. This could lead to unauthorized access to bank accounts, fraudulent credit card applications, and tax fraud.
Proactive Measures to Protect Yourself
Here is a quick checklist of things you can do to protect yourself and your loved ones from potential identity theft, with more details on each step below:
Register for an Identity Protection Pin (IP PIN) with the IRS.
Freeze your credit file with the 3 major credit reporting bureaus.
Consider signing up for identity/credit monitoring service.
Claim your online account for any financial services you use and enable Multi-Factor Authentication (MFA) whenever possible.
Consider investing in a password manager.
Remain vigilant against potential scams or further attempts to collect your personal information.
Register for your IRS Identity Protection (IP) Pin
When the IRS first introduced the Identity Protection Pin (IP Pin) tool, it was only used for taxpayers who had already had a confirmed case of identity theft. The IRS now offers this as an optional tool for taxpayers who wish to opt in for added security.
An IRS IP Pin is a six-digit number assigned to taxpayers to help prevent the misuse of their Social Security number on fraudulent tax returns. Having an IP PIN significantly reduces the risk of someone else filing a fraudulent tax return in your name, thereby protecting your tax refund and personal information. Each year, you will receive a new IP Pin, which helps maintain security on an ongoing basis.
Here is a helpful link for an IRS article about how to obtain an IP PIN: Get An Identity Protection PIN (IP PIN)
Here is a helpful video explanation from the IRS official Youtube Channel: https://www.youtube.com/watch?v=YhfSZuwGrlY
Freeze your credit file
You can put a freeze on your credit file with the three major credit bureaus, and easily lift the freeze whenever you legitimately want to apply for something that will need to run a credit check. Many experts always recommend this as a best practice for conscious consumers, but especially after data breaches become known.
Putting a freeze on your credit file will prevent criminals from taking out loans, signing up for credit cards, and opening financial accounts under your name.
The three major credit bureaus in the US are:
Experian
Equifax, and
TransUnion
You can put a freeze on your account online or by phone. This helpful article has information about how put a freeze on your account with each bureau and other helpful tips to keep your credit identity secure: Identity theft is soaring; reduce your risk dramatically by simply freezing your credit files
Consider Signing Up for a Credit Monitoring Service
A credit monitoring service will notify you of any time someone runs a credit check on your file. If you get a notification that your credit has been run and you don’t recognize the request, you can act quickly to correct things before the scammer wreaks havoc on your credit score.
There are many reputable services that will do this monitoring for you for a small monthly fee. It’s also worth checking if a service you are already using offers this service. Most major credit card companies offer this service as a free perk of your account, and you just need to activate it.
Register your online account for any financial services you use and enable multi factor authentication (MFA) whenever possible
The previous tips have been to help prevent fraudsters from opening new accounts in your name. But it’s just as important to protect your already existing accounts from being compromised.
It may seem counterintuitive, but your accounts are most vulnerable to identity theft if you haven’t signed up for online access. That’s because it’s easier for thieves to create a login and password while pretending to be you than it is for them to crack your existing login and password.
Once you have registered for all your online accounts, it’s also important to enable multi-factor authentication (MFA) whenever possible. Multi-factor authentication is a security mechanism that requires you to provide two or more verification factors—such as something you know (password), something you have (a smartphone), or something you are (fingerprint)—to gain access to an account or system, enhancing protection against unauthorized access.
Consider investing in a password management application
Another important step you can take to protect your already existing accounts from being compromised is to use a strong unique password for each of your online accounts.
Why is it so important not to reuse passwords?
Imagine each of your online accounts is like a different room in your house, and each password is a key to that room. If you use the same key (password) for all your rooms (accounts), and someone gets a copy of that key, they can unlock every room in your house, not just one.
If a hacker manages to steal your password from one account (like your email or a shopping site), they can try using that same password to access your other accounts. If you reuse passwords, you make it easy for them to break into multiple accounts.
By using different passwords for each account, even if one password is compromised, your other accounts remain safe. It’s like having a different key for each room in your house—if someone gets one key, they can’t get into the others.
It can be challenging to remember each unique password with so many services and accounts having online access now, so a password manager can be a great tool to help you keep track of all your passwords, generate unique secure passwords, and securely share passwords with your spouse or other loved ones in your home.
Many password management applications also offer complimentary dark web monitoring and will alert you if they find your account information anywhere on the dark web for sale, so you can change that password ASAP.
Remain vigilant against potential scams or further attempts to collect your personal information
Whenever a large data breach occurs, you can expect to see an increase in scams that try to obtain your personal information. This is because scammers may obtain part of your information from the breach and use that to help them more successfully pose as your bank or other trusted business and get you to give them the rest of your personal information.
The Federal Trade Commission (FTC) offer great resources to help you learn how to spot a potential scam and protect your identity here.
You can also check out our recent blog post for examples of red flags to look out for to help you spot IRS impersonators here.
Resources if you do suspect your identity has been stolen
Hackers and scammers get more savvy every day and are always coming up with new schemes, so even if you do everything right, you may still become the victim of identity theft.
To report identity theft and get help, visit https://www.identitytheft.gov/
If you suspect tax identity theft, you can get specific help for this issue at: https://consumer.ftc.gov/articles/what-know-about-tax-identity-theft
We hope these tips and resources help you feel more equipped to protect yourself against identity theft. Remember, safeguarding your personal information is an ongoing process that requires vigilance and proactive measures.
As your trusted tax advisors, we are always here to assist you with any questions or concerns you may have. Together, let's stay one step ahead and keep your financial future secure.