3 smart ways to protect your identity right now

In an age where personal information is increasingly digitized and interconnected, identity theft has become a serious and widespread threat. After all, cybercriminals are constantly on the lookout for new ways to steal your identity, and it's surprisingly easy to fall victim to their attempts — whether you're tricked by a sophisticated phishing scam or mistakenly enter your information on an unsecured website. Data breaches can also be a real threat to your identity — and, in turn, your finances. 

And, if the information outlined in a new lawsuit is correct, billions of Americans' identities are currently at risk due to precisely that issue: a data breach. The lawsuit, filed by California resident Christopher Hofmann earlier this month, alleges that hackers have gained access to a massive amount of unencrypted personal information held by National Public Data (NPD), a background check company. The breach allegedly includes 2.7 billion records, each containing a person's full name, address, date of birth, Social Security number and phone number.

What makes this situation particularly alarming is the comprehensive nature of the data. With access to this type of information, fraudsters could potentially infiltrate financial accounts, take out loans or commit other financial crimes with relative ease. That, in turn, underscores the need to take proactive steps in safeguarding your identity. 

Find out how to keep your personal information out of the hands of cybercriminals.

3 smart ways to protect your identity right now

Here's how you can help protect your personal information and mitigate the risk of identity theft:

Freeze your credit

One way to protect yourself from identity theft is to freeze your credit, which is free and easy to do. By freezing your credit, you restrict access to your credit report, which can create a significant barrier against unauthorized access to your credit information. Even if someone has your personal details, they won't be able to open new credit accounts without first lifting the freeze.

To do this, you need to contact each of the three major credit bureaus individually (Equifax, Experian and TransUnion) and request a credit freeze. This can typically be done online or by phone. After your credit is frozen, you are still able to apply for new credit when you need to. You just temporarily lift the freeze using a PIN provided by each bureau.

Learn more about how to keep your personal information safe online now.

Set up credit and Social Security alerts

While monitoring your credit and Social Security number activity won't stop someone from accessing your personal information, it is crucial for early detection of potential identity theft. By setting up these alerts, you'll be notified promptly of any suspicious activity, allowing you to take immediate action if your identity is compromised.

Setting up alerts is simple, too. Here's how you can do it:

• Credit alerts:
• Sign up for free credit monitoring services, which are typically offered by credit card companies and banks.
• These services will notify you of any significant changes to your credit report, such as new account openings or hard inquiries.
• Consider setting up alerts with all three major credit bureaus for comprehensive coverage.
• Social Security number alerts:
• Create a my Social Security account at ssa.gov if you haven't already.
• Enable notifications for any activity related to your Social Security number.
• The Social Security Administration will alert you to any changes or attempted changes to your account information.

Use an identity theft monitoring service

For more comprehensive protection, you may want to consider using an identity theft monitoring service instead. These services offer a range of features that go beyond basic credit monitoring and can include:

• Dark web monitoring: The service scans the dark web for your personal information, alerting you if it's found on illegal marketplaces.
• Identity restoration services: If your identity is stolen, these services assist in restoring your identity and resolving issues.
• Insurance coverage: Many identity theft monitoring services offer insurance to cover financial losses and legal fees associated with identity theft.
• Credit monitoring across all bureaus: These services typically monitor your credit reports from all three major bureaus, providing a comprehensive view of your credit activity.
• Public records monitoring: Some services will also scan public records for signs of identity theft, such as address changes or court records in your name.

While these services come at a cost, they can offer peace of mind and save you significant time and stress if you become a victim of identity theft. They essentially act as a watchdog for your personal information across multiple platforms and databases, making them well worth the extra monthly charge for many people.

The bottom line

The potential NPD data breach serves as a stark reminder of the vulnerability of our personal information in the digital age. By taking these three smart steps — freezing your credit, setting up alerts, and using an identity theft monitoring service — you can significantly reduce your risk of becoming a victim of identity theft. Remember, though, that protecting your identity is not just a one-time task but an ongoing process. Stay vigilant, regularly review your credit reports and don't hesitate to investigate any suspicious activity. Your identity is one of your most valuable assets; safeguarding it should be a top priority.