Several weeks back, the shocking news about Target’s security breach sparked public shock and anger. This breach exposed millions of Target shoppers in November and December to the risk of identity theft as hackers had access to their credit card information.
The situation, however, has further escalated. Not only were the credit card details stolen, but hackers also obtained details like customer emails, phone numbers, names, and physical addresses. Target has also acknowledged that the severity of the damage is more than initially anticipated, with potentially up to 110 million customers at risk. Following this, Neiman-Marcus confessed that their buyers also experienced a security breach during the holiday shopping season.
If you’re among the majority of Americans who use credit cards for convenience, how can you safeguard your information? Here are few strategies:
1. USE CASH.
Resultantly reverting to cash transactions eliminates electronic traceability and reduces the likelihood of your information being stolen in retail stores. However, it’s pertinent to remember that information can still be stolen in other scenarios like hospital and student loan services breaches.
2. ANNUALLY ACCESS YOUR CREDIT REPORT.
You are eligible to receive a free annual credit report from annualcreditreport.com. You can obtain one periodic report every year from each of the credit bureaus—TransUnion, Equifax, and Experian. The most effective approach includes spacing out these free reports across the year. For instance, request a report from TransUnion in January, from Equifax in May, and from Experian in September. This strategy ensures regular check-ins for any suspicious activity.
3. INVEST IN A CREDIT MONITORING SERVICE.
For roughly $80 to $100 per annum, you can subscribe to a credit monitoring service. These services alert you promptly upon a suspected identity theft, potentially before significant damage could be done. Additionally, they often provide assistance with restoring your credit if it were stolen.
4. FREEZE YOUR CREDIT.
Though strategies 2 and 3 can help identify if your identity has been stolen, they’re reactionary. It still results in dealing with the fallout of identity theft. The only comprehensive preventive measure is to freeze your credit.
Freezing your credit ensures that no one, including you, can access your credit or open a new credit line. When applying for a credit card or loan, you will need to call the respective reporting bureau and use the assigned pin to unfreeze your credit. You can either unfreeze it indefinitely or for a specific duration, such as a week. Small charges associated with freezing and unfreezing your credit may apply.
If security breaches and potential identity theft concern you, the foolproof preventive measures are using cash or freezing your credit. If these aren’t feasible, consider regularly accessing your credit report or investing in a credit monitoring service for peace of mind.
