Our information is everywhere, from social media to utility companies. Every company we provide information to houses our personal information in some type of cloud or computer software. We trust that our information is kept safe, but there are still data leaks.
Data leaks can have potential consequences, especially when it comes to our personal finances. If you are notified that your information was part of a data leak, you must immediately take action to protect yourself.
Here are five essential steps to take to protect yourself after a data leak.
5 Essential Steps to Take After a Data Breach
Step 1: Confirm the Breach and Understand the Scope
The first thing to do if your personal information is part of a data breach is to confirm that your data was leaked and the full scope of the information was exposed.
There will be news stories if a major company is involved in a data breach. If you are a current or previous customer or current or previous employee of that breach, keep an eye out for the news. If there is confirmation that information was leaked, this will be on the news.
This company will send out mail to anyone who was or is suspected to be involved in the leak. It’s important to wait for this information because, in this mail, you will get more detail about what information was exposed.
This information will contain the following:
- When and what happened
- What information is involved
- What the company is doing
- What you can do
- Where to find out more information
Once you have this confirmation, you can proceed with the rest of the steps.
Step 2: Contact Your Financial Institutions
When you have been notified that your private information has been compromised, you should immediately notify your banks and credit card companies.
Every financial institution has different ways that they can assist after a data leak. For example, they may have credit monitoring, ID protection, or other options that you can utilize.
Step 3: Monitor Your Financial Accounts and Credit Reports
After a data breach, it’s important to consistently monitor your accounts. Apps like Credit Karma are a great place to start to quickly see if you have any new accounts that have been opened or unknown spending on your credit cards. Request an official credit report from AnnualCreditReport.com as well.
Most companies will provide credit monitoring to those impacted by a data breach. Read any paperwork about this to make sure you are properly enrolled.
To protect yourself from a data breach, make sure to sign up for:
- Credit monitoring
- Identity protection services
- Identity theft insurance
- Identity restoration services
If you are not provided with this by the company, great companies like Zander Insurance can help you.
Step 4: Consider a Credit Freeze
A credit freeze allows you to be in control of when and how your credit is used.
You can set up a freeze on your credit so that no new accounts can be opened until you unfreeze it. This will comfort you that if someone other than yourself tries to open up an account with your personal information, they will not be able to.
Most credit freezes would give you fraud alerts if your information was used while you froze your credit.
Step 5: Change Passwords and Update Security Questions
After you have done your due diligence to notify your banks, set up credit monitoring, and possibly freeze your credit, you will want to update all of your online security information.
Change your passwords to secure passwords. Avoid using words or phrases that can easily be found out about you. Instead, use random letters, numbers, and symbols to make it hard for someone to guess your password.
You will also want to change your security questions. This information could have been part of the leak, and if you used it for one company, you would probably use it for all of your security questions.
These changes can give you extra protection from someone hacking into your bank or credit card accounts.
Final Thoughts
Finding out your personal information was stolen after a data leak can be frustrating. When you are notified that this impacted you, it’s crucial to take prompt action to protect yourself. Any stolen information can be used and negatively impact your financial situation.
To prevent this, set up credit monitoring, freeze your credit, notify your banks, and change all passwords and security questions. Continue to be vigilant after a data breach so you can take action if your information was used without your consent.