This post isn’t regarding Charles Schwab or any piece of software WELLth uses for financial planning and investment management. Your accounts are safe! Each vendor we use encrypts their data and uses multi-factor authentication to protect client information. Additionally, we regularly review each vendors’ security protocols to ensure all client data is always safeguarded.
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I’m sure everybody has been seeing in the news the recent data breach of Fort Lauderdale-based National Public Data (NPD). Long story short, a hacking group named “USDoD” stole records of 2.9 billion people from NPD, which uses this data for things like background and credit checks. The records included Social Security numbers, contact information, and even some passwords. The hack allegedly happened in April, but it’s been reported that only now are hacked records popping up in various online forums and information marketplaces.
While it’s difficult to check whether an individual’s data was, in fact, leaked, it’s probably best to err on the side of caution and take measures now to safeguard your identity and credit. Here are a few measures I would recommend:
- *Good* Create an account with at least one of the three credit bureaus and place a “fraud alert.” A fraud alert puts a “red flag” on your credit report and tells lenders to take additional steps to verify your identity before approving things like loans, credit cards, and payment plans. Fraud alerts can usually be placed on an account for a year for no charge.
- *Better* Instead of placing a fraud alert on your account, you can add a “freeze” to your credit. This will make lenders automatically reject any applications for credit. Does this mean you can’t get a loan for yourself? No, not at all. This just means each time you apply for credit, you’ll need to log into the credit bureaus’ websites and temporarily unfreeze your credit. Freezing your credit report is also free under federal law.
- There are three credit bureaus, TransUnion, Equifax, and Experian. Each of their websites can be found below. If you create any accounts, make sure to write down your passwords since recovering lost login credentials can be difficult:
- Consider changing your passwords for other sites (banks, credit cards, loyalty programs) to new, harder to guess combinations of text, numbers, and special characters.
Do Not:
- Use any website to try and determine whether your information was leaked. There are many non-government affiliated sites purporting to be able to tell you if your information was leaked. Beware, as most of these sites are simply trying to steal your information. As class-action lawsuits play out, National Public Data will most likely reach out to any individual who had their data leaked and offer remedies such as free credit monitoring for several years. There is also a large class-action lawsuit against NPD, meaning individuals who had their information leaked may in the future be entitled to monetary damages.
Other things to know:
- Your Schwab investment accounts are safe! Charles Schwab continues to report that their data remains secure and requires any individual calling in to get account information to undergo extensive identify verification procedures, including verbal passwords, SMS text codes, and verification questions that could only be answered with an account statement. I am also always keeping an eye out for suspicious e-mails, texts, and will always confirm any trade or transfer instructions that seem unusual.
- Federal regulations cap your liability at $50 for any unauthorized debit or credit card charges. Similarly, any fraudulent lines of credit, subscriptions, and loans can be cancelled with minimal to no personal expense.
What to do if you think something is wrong:
- Call your bank or credit card company and let them know. They will close the compromised account or card and issue you a new card and/or account number.
- Let me know. We’ll file a report with the Federal Trade Commission, place holds on any other compromised accounts, and create a recovery plan.
I’m here for folks during both the good times and bad. And, hopefully the recent leaks will prove to be inconsequential, but it’s still a good idea to take precautions just in case.