Sage Rutty & Co.,
Inc.
Victoria Chase Ferren, CFP®
Director of Financial Planning
100 Corporate Woods
Suite 300
Rochester, NY 14623
585-512-2340
On
September 7, 2017,
Equifax
announced a
massive
data breach that
exposed
vital personal
identification
data on as
many as
143 million
consumers,
roughly 55% of
Americans
age 18 and older.
On September 7, 2017,
Equifax, one of the three main credit reporting agencies, announced a massive
data security breach that
exposed vital personal identification data — including names, addresses, birth
dates, and Social Security
numbers — on as many as 143 million consumers, roughly 55% of Americans age
18 and older.1
This data breach was
especially egregious because the company reportedly first learned of the breach
on
July 29 and waited roughly
six weeks before making it public (hackers first gained access between
mid-May and July) and three
senior Equifax executives reportedly sold shares of the company worth nearly
$2 million before the breach
was announced. Moreover, consumers don't choose to do business or share
their data with Equifax;
rather, Equifax — along with TransUnion and Experian, the other two major
credit
reporting agencies — unilaterally
monitors the financial health of consumers and supplies that data to
potential lenders without a
consumer's approval or consent.2
Equifax has faced widespread
criticism following its disclosure of the hack, both for the breach itself and
for
its response, particularly
the website it established for consumers to check if they may have been
affected.
Both the FBI and Congress are
investigating the breach.3 In the meantime, here are answers to questions
you might have.
1. What's
the deal with the website Equifax has set up for consumers?
affected by the breach. Once
on the site, click on the button "Potential Impact" at the bottom of
the main
page. You then need to click
on "Check Potential Impact," where you will be asked to provide your
last
name and the last six digits
of your Social Security number — a request that was widely mocked on social
media as being too intrusive
when the standard request is for only the last four digits.
Equifax has stated that
regardless of whether your information may have been affected, everyone has the
option to sign up on the
website for one free year of credit monitoring and identity theft protection.
You can
do so by clicking the
"Enroll" button at the bottom of the screen. Note: Just clicking this
button does not
mean you're actually
enrolled, however. You must follow the instructions to go through an actual
enrollment
process with TrustedID
Premier to officially enroll.
More wrath was directed at
Equifax when some eagle-eyed observers noted that enrolling in the free year
of credit protection with
TrustedID Premier meant that consumers gave up the right to join any
class-action
lawsuit against the company
and agreed to be bound by arbitration. But an Equifax spokesperson has
since stated that the binding
arbitration clause related only to the one year of free credit monitoring and
not
the breach itself; Equifax
has since removed that language from its site.4
2. What is
TrustedID Premier?
Equifax's response to the
data breach is to offer consumers one free year of credit file monitoring
services
through TrustedID Premier.
This includes monitoring reports generated by Equifax, Experian, and
TransUnion; the ability to
lock and unlock Equifax credit reports with a credit freeze; identity theft
insurance;
and Social Security number
monitoring.
Consumers who choose to
enroll in this service will need to provide a valid email address and
additional
information to verify their identity.
A few days after enrolling, consumers will receive an email with a link to
activate TrustedID Premier.
The enrollment period ends November 21. After the one free year is up,
consumers will not be automatically charged or enrolled in further monitoring;
they will need to sign up
again if they so choose (some
initial reports stated that consumers would be automatically re-enrolled after
the first year).5
3. What
other steps can I take?
It is always a good idea to
monitor your own personal information and be on the lookout for identity theft.
Here are specific additional
steps you can take:
• Fraud alerts: Your first
step should be to establish fraud alerts with the three major credit reporting
agencies. This will alert you
if someone tries to apply for credit in your name. You can also set up fraud
alerts for your credit and
debit cards.
• Credit freezes: A credit
freeze will lock your credit files so that only companies you already do
business
with will have access to
them. This means that if a thief shows up at a faraway bank and tries to apply
for credit in your name using
your address and Social Security number, the bank won't be able to access
your credit report. (However,
a credit freeze won't prevent a thief from making changes to your existing
accounts.) Initially,
consumers who tried to set up credit freezes with Equifax discovered they had
to pay
for it, but after a public
thrashing Equifax announced that it would waive all fees for the next 30 days
(starting September 12) for
consumers who want to freeze their Equifax credit files.6 Before
freezing
your credit reports, though,
it's wise to check them first. Also keep in mind that if you want to apply for
credit with a new financial
institution in the future, or you are opening a new bank account, applying for
a
job, renting an apartment, or
buying insurance, you will need to unlock or "thaw" the credit
freeze.
• Credit reports: You can
obtain a free copy of your credit report from each of the major credit agencies
877-322-8228. Because the
Equifax breach could have long-term consequences, it's a good idea to start
checking your report as part
of your regular financial routine for the next few years.
• Bank and credit card
statements: Review your financial statements regularly and look for any
transaction
that seems amiss. Take
advantage of any alert features so that you are notified when suspicious
activity
is detected. Your vigilance
is an essential tool in fighting identity theft.
4. How
can I get more information from Equifax?
Consumers with additional
questions for Equifax can call the company's dedicated call center at
866-447-7559. The call center
is open seven days a week from 7 a.m. to 1 a.m. Eastern time. Equifax said
it is experiencing high call
volumes but is working diligently to respond to all consumers.7
1, 3-5, 7) The Wall Street
Journal, September 8, 2017, September 10, 2017
2) CNNMoney, September 8,
2017
6) The New York Times, September
12, 2017
IMPORTANT
DISCLOSURES
Broadridge Investor
Communication Solutions, Inc. does not provide investment, tax, legal, or
retirement
advice or recommendations.
The information presented here is not specific to any individual's personal
circumstances.
To the extent that this
material concerns tax matters, it is not intended or written to be used, and
cannot be
used, by a taxpayer for the
purpose of avoiding penalties that may be imposed by law. Each taxpayer
should seek independent
advice from a tax professional based on his or her individual circumstances.
These materials are provided
for general information and educational purposes based upon publicly
available information from
sources believed to be reliable — we cannot assure the accuracy or completeness
of these materials. The information in these
materials may change at any time and without notice.
