The latest Equifax breach has many people considering measures to protect their financial health and well-being, and for a very good reason.
As one of the three largest credit reporting agencies, the amount of private information Equifax has access to is astronomical. The fact that its databases were breached has shown many people just how vulnerable they may be in this highly competitive, tech-driven world.
Now, the main goal is learning how to effectively protect sensitive information and making sure it doesn’t fall into the wrong hands. The very first line of defense starts with you and how well you safeguard your information.
Know Who Has Access to Credit Information
With today’s advancements in technology, almost anyone can gain access to your information if they have the right information and technological tools.
Credit reporting companies have created strict safeguards to help protect your information. While these are firmly in place, they still require you to complete the process using specific security passwords, codes, and protective measures. This prevents unwanted intruders from accessing your information without your permission.
Protect yourself by keeping these safeguards up to date.
Review Your Credit Report Frequently
You should review your credit report as often as you can. This will tell if anyone is trying to access your information or if you have companies performing hard inquiries without permission. B
By reviewing your report, you will be able to identify any new activity, how much you owe, and what companies still appear on your report. It will also provide you with your FICO score that is a good representation of your financial health at any given moment.
Shred Financial Documents
While it’s natural to just toss unwanted papers in the trash, avoid this practice with any type of financial paperwork.
Once your trash hits the curb, it becomes public and anyone can legally go through it. Instead of placing your financial papers in the circular file, shred them. This makes it almost impossible to retrieve any private or secure information and dramatically reduces your risk of identity theft.
On an unrelated note, shredding also saves space and makes it easy to recycle.
Update Your Passwords
Update your passwords at least twice a month. While this may seem a monotonous task, it can go to great lengths to protect your sensitive information. It’s also important to avoid using names, dates, and locations that are familiar to you.
If someone knows you, it won’t be difficult to figure out that type of information. This can leave you vulnerable to both identity theft and financial loss. Use both numbers and letters in your passwords.
Many websites are now requiring the use of symbols as an additional level of difficulty. The use of both symbols and numbers makes it much harder for hackers to identify passwords. You should also avoid using reusing old passwords.
Consider Freezing Your Credit
If you are worried about who is looking at your credit report without your permission, you may want to consider freezing your credit.
A credit freeze makes your credit reports inaccessible. A freeze will normally remain in place until you remove it, but some states may allow it to drop off after a certain amount of time.
A credit freeze does not mean you can’t get credit. It only means that no one else has access to your information without your explicit permission.
Security Alerts
An additional level of protection is the placement of security alerts. A security alert can be added to your credit report that protects you from accounts being opened in your name without your permission. A security alert means you will be notified anytime someone attempts to access your information or tries to open a new line of credit.
Before an account can be opened, you will receive a phone call or message that requires you to give verbal permission to the company opening the line of credit. Without your permission, no new credit can be established and the account will be shut down.
Protecting yourself from security breaches such as the one that impacted Equifax isn’t difficult, but it does take diligence. Constantly being aware of your financial standing is extremely important when it comes to security. Never leave your financial stability to chance. A few safety measures and carefully monitoring your credit report can save you from financial loss.
Regards,
Ethan Warrick
Editor
Wealth Authority
