Was Your Social Security Number One of the Millions Just Leaked? Here's How To Find Out and How To Protect Yourself
In this episode of the Money Rehab podcast, the hosts examine a massive data breach that exposed the personal information of nearly 4 in 5 Americans and citizens in the UK and Canada. They delve into the impact of this breach by a secretive company that collected data without consent, highlighting risks like financial fraud and identity theft.
The episode also provides practical guidance on safeguarding your identity in the aftermath of such a breach. From credit freezes to monitoring services, listeners will learn steps they can take to regain control over their personal data in an increasingly risky digital landscape.
This is a preview of the Shortform summary of the Aug 30, 2024 episode of the Money Rehab with Nicole Lapin
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1-Page Summary
The National Public Data Data Breach
One of the Largest Personal Data Leaks Ever
A cybercriminal group obtained a massive database from National Public Data, a company that secretly collected personal details on 2.9 billion people without consent. Sanger-Katz reports this breach affects nearly 4 in 5 Americans, over 272 million individuals, along with citizens in the UK and Canada.
National Public Data has failed to warn victims or take mitigation steps. A lawsuit accuses the company of negligence, demanding they purge and encrypt exposed data.
Financial and Identity Theft Risks
With stolen social security numbers, hackers could open credit accounts, get jobs using victims' identities, face IRS issues from unreported wages, and commit other financial crimes.
Victims feel this intrusion violates their privacy and control over personal data, as Barbaro likens the experience to a "digital home invasion."
Protecting Your Identity
To safeguard against identity theft, individuals can take steps like:
- Freezing credit with major bureaus to block new accounts
- Employment, utilities, and bank account freezes
- Payday loan freezes through services like LifeLock
Sanger-Katz suggests these protective measures allow greater control over one's financial identity in an increasingly risky digital world.
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Counterarguments
- National Public Data may argue that the data collection was legal under certain jurisdictions or for specific purposes, such as public records or aggregated data analysis.
- The company might claim that they had security measures in place, but no system is entirely immune to sophisticated cyber attacks.
- National Public Data could assert that they were in the process of notifying victims and taking mitigation steps, but the process was not immediate due to the scale of the breach.
- The lawsuit's demand for purging data might be contested on the grounds that some of the data could be necessary for ongoing business operations or other legal obligations.
- It could be argued that the responsibility for protecting personal data should not rest solely on the company but also on individuals to safeguard their information.
- The comparison to a "digital home invasion" might be seen as an exaggeration, as physical invasions pose immediate physical danger, whereas data breaches are a different type of crime with different implications.
- Services like LifeLock may not be foolproof, and some might argue that they offer a false sense of security or that they are not a substitute for systemic changes in data protection laws and practices.
- The effectiveness of credit freezes and other protective measures might be questioned, as they can be inconvenient and may not protect against all types of identity theft or financial fraud.
Actionables
- You can create a personal data inventory to track where your information might be stored online. Start by listing all the places you've provided personal information to, such as social media, online stores, and subscriptions. Regularly review these sites' privacy policies and data usage to ensure your data isn't being shared without consent. If possible, request data deletion from services you no longer use.
- Develop a habit of using virtual credit cards for online purchases to minimize the risk of financial fraud. Virtual credit cards generate a unique card number for each transaction, which can limit the damage if one of your shopping sites suffers a data breach. Many banks and financial services offer this feature, so check with your provider on how to set it up.
- Engage in a monthly "privacy check-up" where you review your financial statements, credit reports, and online accounts for any unusual activity. This proactive approach can help you catch identity theft early. Use this time to update passwords, remove unnecessary browser extensions, and check for updates on your digital devices to ensure you have the latest security patches.
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Overview of the National Public Data data breach incident
The National Public Data data breach stands as one of the largest in history, deeply impacting privacy across America.
The National Public Data data breach is one of the largest data breaches in history, affecting nearly 4 in 5 Americans.
The culprit behind this massive security breach is a company called Jericho Pictures Inc., which operates under the name National Public Data. This company, unbeknownst to many, has been quietly collecting and scraping personal information from various sources without obtaining user consent.
An unsettling revelation came to light when a cybercriminal group called USDOD claimed to have secured a database containing the personal details of 2.9 billion individuals. Moreover, in April 2022, they announced their intent to sell this highly sensitive information, which includes social security numbers, names, addresses, and family ties, for $3.5 million.
As it stands, 272 million Americans could be impacted, correlating to nearly 4 in 5 individuals given the US population of just over 345 million. But the reach of this breach extends beyond American borders, encompassing citizens in the UK and Canada as well.
The company at the center of the breach, National Public Data, has reportedly done nothing to notify or warn the victims.
In the wake of the disaster, National Public Data has notably failed to proactively address the victims of the breach ...
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Overview of the National Public Data data breach incident
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Counterarguments
- The extent of the breach may not be fully known, and the figure of 4 in 5 Americans affected could be an overestimation or underestimation.
- It is possible that Jericho Pictures Inc. may have had some level of consent or legal grounds for collecting personal data, which is not detailed in the text.
- The claim by USDOD could be exaggerated or unverified, and the actual number of individuals affected might be different.
- The impact on citizens in the UK and Canada may not be as significant as suggested, or there may be other countries equally or more affected that are not mentioned.
- National Public Data may have taken some actions to notify victims or mitigate the damage that are not reported in the text.
- The lawsuit filed by Christopher Hoffman represents one side of the legal argument, and National Public Data may have a valid defense that is not presented.
- The demands of the lawsuit, such as ...
Actionables
- You can enhance your digital privacy by opting out of data collection on websites you visit. Start by looking for a privacy policy or terms and conditions link at the bottom of the homepage. If the site collects personal data, they often provide instructions on how to opt out. For example, if you're shopping online and notice the site tracks your browsing habits, find their privacy policy and follow the steps to opt out of data tracking.
- Create a personal data breach response plan to act quickly if your information is compromised. Write down steps like contacting your bank to monitor for fraudulent activity, changing passwords for online accounts, and setting up fraud alerts with credit bureaus. For instance, if you learn your email has been part of a data breach, you would immediately change your email password and then proceed with the other steps in your plan.
- ...
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Potential impacts and risks to individuals from the data breach
In light of a recent data breach, individuals affected are at risk of financial damage and identity theft as their personal information, including social security numbers, is exploited by hackers.
With stolen social security numbers, hackers could open credit cards or loans in the victim's name, leading to financial damage and identity theft.
Victims worry that with access to their social security numbers, hackers have the potential to inflict significant financial harm. They could open credit cards, apply for loans in the victims' names, or even sell the sensitive data to identity thieves who could further misuse the credit.
Hackers could use the stolen social security numbers to get jobs, potentially causing issues with the IRS for unreported wages.
The risks extend beyond credit fraud as victims express concern that their social security numbers might be used by perpetrators to secure employment. Such actions could lead to victims being wrongfully targeted by the IRS for unreported wages, further complicating their financial and legal standing.
Hackers could also use the stolen information to open utility accounts or bank accounts in the victim's name, leading to further fraud and financial crimes.
The stolen social security numbers could also be used to open utility accounts or bank accounts, setting the stage for a broad range of financial cr ...
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Potential impacts and risks to individuals from the data breach
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Clarifications
- A data breach can lead to financial damage and identity theft for individuals, as hackers can exploit stolen personal information like social security numbers. This can result in fraudulent activities such as opening credit cards, applying for loans, or even creating utility or bank accounts in the victim's name. Beyond financial harm, victims may also face emotional distress and a sense of violation, as their personal space and control over their information are compromised.
- When hackers exploit personal information, they use it for malicious purposes like identity theft or financial fraud. This can involve using stolen data to open credit cards, apply for loans, or even sell the information to other criminals. The exploitation of personal information can lead to serious consequences for individuals, affecting their financial stability and personal security. Hackers may also use stolen information to commit various types of fraud, such as opening utility or bank accounts in the victim's name.
- Stolen social security numbers can lead to various financial crimes like opening fraudulent credit cards or loans, unauthorized employ ...
Counterarguments
- While the risks of financial damage and identity theft are real, it's important to note that not all data breaches result in such outcomes, and many individuals may not experience any negative consequences.
- There are systems in place, such as fraud alerts and credit freezes, that can help mitigate the risk of someone opening credit cards or loans in a victim's name.
- Employers typically use more than just a social security number for job verification, which may reduce the likelihood of employment-related fraud.
- Financial institutions have sophisticated fraud detection systems that can sometimes prevent the opening of unauthorized accounts.
- The emotional impact of a d ...
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Steps individuals can take to protect themselves
In today’s digital age, protecting personal information is crucial. Here are some proactive steps individuals can take to safeguard their financial identity.
Credit Freeze with Major Bureaus
One of the key measures individuals can take to protect their financial identity is to freeze their credit with the three major credit bureaus: Equifax, Experian, and TransUnion.
How a Credit Freeze Works
Freezing credit is distinct from canceling a credit card. It locks your credit report, which prevents creditors and others from accessing it. This effectively stops any new accounts from being opened in your name without your consent.
Temporarily Thawing Your Credit
Should you need to make a significant purchase like a house or a car, you can temporarily lift the credit freeze, a process known as "thawing" your credit. It is just as easy to thaw your credit as it is to freeze it, offering flexibility when you need access to credit.
Additional Protective Measures
Beyond a credit freeze, there are several other steps you can take to further shield yourself from identity theft and fraud:
Employment Data Freeze
Placing a freeze on your employment data with E-Verify can prevent identity thieves from misusing your information to gain employment.
Utilities Freeze
A utilities freeze with the National Consumer Telecom and Utilities Exc ...
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Steps individuals can take to protect themselves
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Counterarguments
- Credit freezes may not protect against all types of identity theft, such as tax-related fraud or medical identity theft.
- Freezing credit can be inconvenient, as it requires the individual to remember to thaw their credit each time they need to authorize a new credit inquiry.
- Not all lenders use the three major credit bureaus, so a credit freeze might not provide complete protection.
- Employment data freezes and utilities freezes are less commonly known and may not be as straightforward to implement for many individuals.
- Freezing bank accounts with Chex Systems might not prevent all forms of banking fraud, especially with institutions that do not use Chex Systems for background checks.
- Services like LifeLock require a subscription fee, which may not be feasible or desirable for all individuals.
- Over-reliance on fr ...
Actionables
- You can create a personalized checklist of all your financial accounts and assets to monitor for any unauthorized activity. Start by listing all your bank accounts, credit cards, loans, and investments, then set calendar reminders to check each one monthly for accuracy and signs of fraud. This habit ensures you're the first to spot discrepancies, rather than relying solely on freezes for protection.
- Develop a habit of reviewing your credit report regularly, beyond the freezes, to catch any unauthorized changes or accounts. You can sign up for a credit monitoring service that alerts you to changes in your credit report, or you can use the annual free credit report service provided by law to check for discrepancies and address them promptly.
- Engage in proactive pass ...
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