What Happened?
- The Breach: A massive data leak, involving over 2.7 billion records, including SSNs, was made public on the dark web. This data was allegedly sourced from National Public Data, a company known for compiling personal information for various uses like background checks.
- Scope of the Breach: While not every detail has been confirmed, the scale suggests that this could potentially affect every American, with records including names, addresses, and SSNs.
- Regardless of the exact details, it is good security practice to protect yourself.
Immediate Actions You Should Take:
1. Credit Freeze:
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- Why: A credit freeze restricts access to your credit report, making it difficult for identity thieves to open new accounts in your name.
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- How:
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- Equifax Call 1-888-378-4329 or click the link
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- Experian Call 1-888-397-3742 or click the link
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- TransUnion Call 1-888-909-8872 or transunion.com.
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It should not cost you anything to place this freeze. You should not have to enroll in any plans to obtain the freeze.
If you want to place a freeze for a minor child or incapacitated adult, you must usually do so by mail. Each agency’s website details the process, such as TransUnions.
2. Obtain an IP PIN from the IRS:
- Why: An Identity Protection Personal Identification Number (IP PIN) is a six-digit number assigned to eligible taxpayers to help prevent tax-related identity theft. It’s required when filing your tax return, adding an extra layer of security.
- How:
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- Visit the IRS website or call them at 1-800-908-4490 to request an IP PIN. You’ll need to verify your identity, which might include providing personal information or answering security questions.
Additional Security Measures:
- Monitor Your Credit Reports: Regularly check your credit reports for any unauthorized activity. You’re entitled to one free report every 12 months from each of the three major credit bureaus.
- Fraud Alerts: Besides a credit freeze, consider setting up a fraud alert. This is less restrictive but still notifies creditors to verify your identity before opening new accounts.
- Use Strong, Unique Passwords: For all your accounts, especially those linked to financial information, use strong, unique passwords or consider using a password manager.
- Two-Factor Authentication (2FA): Enable 2FA wherever possible, and aim for security apps or passkeys, not SMS text messages which are easy for predators to hack. This adds another layer of security beyond just your password.
- Refer to our earlier blog on this topic for more cybersecurity tips.
Conclusion:
The recent SSN breach is a stark reminder of how vulnerable our personal information can be. Taking proactive steps like freezing your credit and securing your tax identity with an IP PIN are not just recommended but necessary in today’s digital landscape. Stay vigilant, update your security practices, and remember, in the realm of cybersecurity, prevention is always better than cure.
If you need assistance with your tax planning, retirement planning, investment management or financial plan, please reach out to our team.
Disclaimer:
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
Milestone Financial Planning, LLC (“Milestone”) is a fee-only financial planning firm and registered investment advisor headquartered in Bedford, NH. Registration does not imply a certain level of skill or training. Milestone works with clients on an ongoing, long-term basis, providing financial planning, tax planning, retirement planning, and investment management services. Fees are based on assets under management and may include a financial planning fee. Milestone receives no commissions or referral fees and, as a fiduciary, is required to act in clients’ best interests. Advisory services are offered only where Milestone and its representatives are properly licensed or exempt from licensure. More information, including fees and principal risks, is available in Milestone’s Form ADV Part 2A. For help with your investments or financial planning, contact one of our fee-only advisors.
