Data Breaches: Protecting Yourself

By
ELISABETH LEAMY
June 13, 2006, 8:50 PM ET
3 min read

June 9, 2006— -- This week brought fresh concerns about identity fraud and national security after revelations that millions of soldiers' personal financial records were breached. The massive theft is a good reminder to all Americans to take the necessary steps to keep personal data as safe as possible.

The military exposure occurred after a Veterans' Affairs employee took the records home without authorization, and burglars stole his laptop computer. At first, the Pentagon thought the theft affected only veterans' records, but now it's clear the birth dates and Social Security numbers of 80 percent of the active military are in jeopardy.

"I just think whoever's in charge of protecting needs to step it up a bit," Sgt. David Drafton told ABC News.

Brigadier Gen. Steve Patton of the U.S. Marine Corps added: "I think its a serious problem we're going to have to address as a nation."

More than 2 million members of the active service, guard and reserves are at risk after the computer theft. What's maddening for all military families is that they don't yet know which service members were affected because the veterans' administration hasn't told them yet. Of course, that means all the families need to be on guard. They are just the latest. In the past year, more than 55 million consumers' records have been breached.

Just as military families are in the dark about this data breach, most Americans don't know when they have reason to worry. Only 23 states require companies to inform customers when their information has been exposed. They are Arkansas, California, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Louisiana, Maine, Minnesota, Montana, New Jersey, New York, Nevada, North Carolina, North Dakota, Ohio, Pennsylvania, Rhode Island, Tennessee, Texas and Washington.

So how do you protect yourself? Here are some basic steps to follow:

  • Be alert to suspicious financial activity. Things like receiving credit cards in the mail when you didn't apply for any or failing to receive your monthly bills because a crook has changed your address are enough to raise your suspicions.
  • Sign up for a free fraud alert. If you feel you're at risk, you can ask the credit bureaus to place a free 90-day fraud alert on your file. Businesses are then supposed to call you before issuing any new credit in your name.
  • Next, take advantage of free credit reports. Requesting a fraud alert entitles you to one from each of the three credit bureaus -- Equifax, Experian and TransUnion. Order those now. And check back again in six months using the free credit report all Americans can now get once a year. (See contact information below.)
  • Finally, file a police report if you do find fraudulent accounts. Some departments are reluctant to do the paperwork, but you should insist. It's the law. With that police report, the credit bureaus are required to delete fraudulent accounts from your record.

    • Despite a string of high-profile data breaches that started almost a year ago, Congress has not passed any new legislation to protect consumers. Consumer groups are pressing Congress to make the 90-day fraud alert last longer. They also want something that a handful of states already have -- it's called a credit freeze, which would require your permission for anyone to view your credit. That means nobody can open a new account.

    To file a free 90-day fraud alert and get free credit reports available to victims of fraud:

    www.equifax.comwww.experian.comwww.transunion.com

    To get the free annual credit report every American is entitled to:www.annualcreditreport.com or (877) 322-8228

    For more information about identity theft:www.consumer.gov/idtheft/

    External links are provided for reference purposes. ABC News is not responsible for the content of external Web sites.