Business Bulletin: Here are some steps to protect your credit in wake of Equifax hack


              FILE - This July 21, 2012, file photo shows Equifax Inc., offices in Atlanta. On Monday, Sept. 11, 2017, Equifax said it has made changes to address customer complaints since it disclosed a week earlier that it exposed vital data on about 143 million Americans. Equifax has come under fire from members of Congress, state attorneys general, and people who are getting conflicting answers about whether their information was stolen. Equifax is trying again to clarify language about people’s right to sue, and said Monday it has made changes to address customer complaints. (AP Photo/Mike Stewart, File)
FILE - This July 21, 2012, file photo shows Equifax Inc., offices in Atlanta. On Monday, Sept. 11, 2017, Equifax said it has made changes to address customer complaints since it disclosed a week earlier that it exposed vital data on about 143 million Americans. Equifax has come under fire from members of Congress, state attorneys general, and people who are getting conflicting answers about whether their information was stolen. Equifax is trying again to clarify language about people’s right to sue, and said Monday it has made changes to address customer complaints. (AP Photo/Mike Stewart, File)

Q. I am a victim of the Equifax data breach. What advice does BBB suggest?

A. There were approximately 143 million people impacted by the Equifax data breach. In turn, there is a good chance that you are one. BBB serving Southeast Tennessee and Northwest Georgia is receiving many inquiries from consumers asking how best to protect and avoid possible identity theft.

Approximately 7 percent of U.S. households fall victim to identity theft each year, and those numbers are on the rise. Anyone whose personally identifiable information (PII) has been compromised in a data breach should consider options to protect their credit from being misused.

Better Business Bureau has some suggestions for consumers concerned that their credit or debit cards may have been compromised by a data breach.

1. Stay calm. Consumers are not liable for fraudulent charges on stolen account numbers.

photo Jim Winsett of the BBB.

2. Check with the website of the company that was breached for the latest information. Type the company name directly into your browser. Do NOT click on a link from an email or social media message.

3. If a credit card has been compromised, you will likely hear from the bank or card-issuer first. If you have questions, call the customer service number on your card.

4. Consider putting a credit freeze or fraud alert on your credit reports with the three major credit reporting agencies (go.bbb.org/creditfreeze). A credit freeze will prevent anyone from accessing your credit report or scores. This means you cannot apply for new credit without lifting the freeze. A fraud alert flags your account but does not automatically halt new credit being opened in your name.

5. AnnualCreditReport.com is the only website authorized by the Federal Trade Commission to provide you with a free annual credit report. Be wary of ads, emails, and social media messages for other services. Everyone should check their credit reports annually, whether or not they have been the victim of a data breach.

IF YOUR DEBIT CARD HAS BEEN BREACHED:

Monitor your credit card statements carefully (go online; don't wait for the paper statement).

If you see a fraudulent charge, report it to your bank or credit card issuer immediately so the charge can be reversed and a new card issued.

Keep receipts in case you need to prove which charges you authorized and which ones you did not.

If your debit card has been breached:

Do all of the above as for credit cards, but pay very careful attention to your account. Debit cards do not have the same protections as credit cards and debit transactions withdraw funds directly from your bank account.

Contact your bank for more information, or if you want to pre-emptively request a new debit card or put a security block on your account.

BEWARE OF SCAMMERS

Beware of scammers who may purport to be from the retailer, your bank, or your credit card issuer, telling you that your card was compromised and suggesting actions to "fix" the problem. Phishing emails may attempt to fool you into providing your credit card information, or ask you to click on a link or open an attachment, which can download malware onto your computer.

Considering the magnitude of the Equifax data breach; a credit freeze is suggested for many. First, determine if your personal information has been compromised at www.equifax.com . Also be advised that the volume of consumers telephoning the 800 number and visits to the web site, you may expect some delay in the process.

Consumers in the United States have access to a powerful tool - the credit freeze - to lock down their credit reports and prevent identity thieves from establishing new lines of credit in their names. Alternately, you can place a fraud alert on your credit reports, although that provides less protection than a freeze.

OPTION 1: CREDIT FREEZE

First, a credit freeze will not impact your credit score or impair your ability to use your existing credit cards. A freeze locks down your credit reports, used by lenders to determine your credit worthiness, not your actual credit.

Once you freeze your credit reports, opening new credit will require some advanced planning. You'll need to request a temporary "thaw" with all three credit bureaus to allow lenders to access your reports. The entire online thaw request process for all three bureaus should take about twenty minutes, and your reports can be set to automatically re-freeze on a date you select.

Credit freezes and thaws are generally free for identity theft victims. Nonvictims in all but a handful of states must pay a fee to each credit bureau to implement a freeze (thirteen additional states waive fees for seniors). Fees vary by state, but are generally $3 to $10. For many consumers, a one-time fee to each bureau may provide a lifetime of protection.

You'll need to hold on to your login credentials with each bureau to thaw your reports. A lost PIN or user ID can be difficult and time consuming to retrieve. Credit your login information with each bureau as you would your birth certificate or other important documents.

OPTION 2: FRAUD ALERT

A fraud alert is a less drastic, but potentially less effective, protective measure. A fraud alert flags your credit reports, alerting potential lenders to verify the identity of anyone attempting to open an account in your name. Fraud alerts are free and don't interfere with your ability to receive instant credit. However, fraud alerts rely entirely on the diligence of the person performing the credit check. Fraud alerts are also temporary, and must be reinstated every 90 days in most cases.

It's important to remember that while a credit freeze offers powerful protection, and a fraud alert may also be useful, neither is a guarantee. They will not prevent all forms of identity theft, and will not protect you from misuse of existing accounts. Vigilance is key. Continue to regularly check your credit reports at www.annualcreditreport.com for unauthorized charges or other signs of fraud. This is the only free credit report authorized by the Federal Trade Commission.

Check out BBB's online guide 5 Steps to Better Business Cybersecurity for free information on how to create a data security plan at www.bbb.org/council/for-businesses/cybersecurity/

Jim Winsett is president of the Better Business Bureau in Chattanooga.

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