In the digital age, everything is made just a little bit easier. You can hop online or pull up an app to order lunch, shop for groceries, pay a bill, or deposit a check in just a few clicks. But these modern conveniences also come with risks. Is your personal information really safe on the web?
It’s a valid question, given the alarming frequency with which data breaches seem to occur today. When a data breach occurs, cybercriminals gain unauthorized access to sensitive information, leading to compromised privacy, identity theft, and financial loss. In April 2024, nearly 110 million consumers had a scare when AT&T experienced one of the largest data breaches in its history.
And then in August 2024, National Public Data (NPD), a background check company, confirmed a massive data breach stemming from April, that compromised the personal information of nearly 3 billion people. This breach included sensitive data such as names, Social Security numbers, phone numbers, email addresses, and mailing addresses. The cybercriminal group responsible for this attack, known as USDoD, allegedly put the stolen data up for sale on the dark web for $3.5 million.
We currently have no confirmation of any Marine Credit Union member having been breached. However, it’s crucial to understand what a data breach is and how to ensure you’re protected when one occurs.
Here, we’re sharing resources and practices to help you stay informed about potential data breaches and take proactive steps to protect your personal information.
What is a Data Breach?
A data breach occurs when hackers gain unauthorized access to confidential information. This can include personal data such as Social Security Numbers, bank account details, and data like customer records. The consequences of a data breach can be serious and may lead to identity theft, financial loss, and emotional damage.
Common Causes of Data Breaches
Data breaches can occur as a result of security vulnerabilities or human error. Understanding the common causes of these incidents can help you take steps to protect your sensitive information:
Phishing attacks
A phishing attack is one of the most common methods cyber criminals use to gain access to sensitive data. This typically involves fraudulent emails, messages, or websites designed to trick you into revealing your personal information.
Weak passwords
Easily guessed passwords and credentials reused across multiple accounts pose a big security risk. Hackers use automated tools to attack or exploit passwords obtained from data breaches. Failing to use strong, unique passwords and multi-factor authentication (MFA) makes your data more vulnerable. Learn more about password managers in another blog of ours.
Software vulnerabilities
Cyber attackers can exploit weaknesses in applications, operating systems, or networks. These vulnerabilities can happen due to coding errors, missing security patches, or inadequate security settings. Companies with poor vulnerability management practices have an increased risk of data breaches.
Insider threats
Intentional or unintentional actions by individuals who work for an organization can compromise data security. Malicious threats involve the deliberate leak of sensitive information. Unintentional threats often result from human error. Either way, companies must take steps to mitigate these risks through security policies, training programs, and access controls.
The Impact of Data Breaches
Data breaches can have serious, lasting impacts. Understanding the consequences of a data breach can help you be more vigilant about protecting your personal information:
Identity theft
One of the most serious consequences of a data breach is the risk of identity theft. When your personal information is stolen, fraudsters may use this data to impersonate you. This can result in unauthorized financial transactions or accounts in your name. Resolving identity theft can be a lengthy and arduous process, requiring significant time and resources to restore your identity and repair your credit score.
Financial loss
Victims of a data breach may experience financial losses due to fraudulent activities. Hackers may use stolen information to make purchases, withdraw funds from bank accounts, or apply for loans in your name. Resolving disputes with creditors and other companies can be time-consuming and stressful. Plus, the potential damage to your credit score can affect your ability to secure loans or favorable interest rates in the future.
Compromised privacy
Data breaches compromise your privacy by exposing sensitive personal information to potential identity thieves. Once your data is breached, it may be sold on the dark web or used in targeted phishing attacks. This creates a heightened risk of future breaches and identity theft incidents.
Emotional and psychological impact
Beyond the financial implications, data breaches can also take an emotional toll. The sense of violation and vulnerability that results from having your personal information exposed may lead to stress, anxiety, and distrust, and these feelings can linger long after the breach is resolved.
Protecting Yourself from Data Breaches
Preventing a data breach may be outside of your control, but you can take steps to safeguard your personal information:
Change your passwords regularly and use strong, unique passwords for different accounts.
Enable multi-factor authentication to add an extra layer of security to your accounts.
Monitor your accounts regularly to identify any suspicious activity.
Use identity theft protection services that can alert you to potential threats and assist in recovery.
Steps to Take After a Data Breach
If you have confirmation that you were in a data breach, most organizations will provide ‘Free Credit Monitoring’ for a period of time. However, you can also do the following steps to help protect your credit:
Identify the type of information that was breached
Companies are required to inform you if you may have been impacted by a breach and what type of information has been compromised. Whether it’s your name, address, Social Security Number, or account passwords, understanding the information leaked will help your monitoring and recovery efforts.
Change your passwords
Data breaches often result in stolen passwords. To prevent thieves from gaining unauthorized access to your accounts, immediately change your exposed password on every site where you use it. When choosing a new password, avoid using something simple. A strong password should be 8-20 characters and include a mix of upper- and lower-case letters, numbers, and special characters.
Freeze your credit or place a fraud alert on your credit file
If you suspect your personal information has been exposed in a data breach, you can temporarily freeze your credit, making it more difficult for a fraudster to take out new credit in your name. Freezing your credit doesn’t impact your score, there is no fee, and you can unfreeze at any time.
You also have the right to ask the credit bureaus to place a “fraud alert” in your file. This flag lets potential creditors know that you may be a victim of identity theft and cautions them to take extra steps to verify your identity before opening new accounts in your name. To place a freeze or fraud alert on your credit, contact the three major credit bureaus:
If you become the victim of identity theft due to a data breach, file a report online with the Federal Trade Commission (FTC). This is an essential step for disputing fraudulent accounts or transactions with creditors and other companies. Reporting the incident to the FTC creates an official record of the crime, and the agency will provide a personalized recovery plan to help you resolve issues caused by identity theft.
Monitor your accounts
After taking the steps outlined above, continue to monitor your accounts for suspicious activity. Many companies that experience a breach also provide free credit monitoring services for a period of time to their impacted customers. Enroll in these services as soon as they’re offered to you.
Can I find out if my data has been breached?
There are several ways to find out if your personal information has been exposed in a data breach:
Data breach notifications
Companies are required to notify you if your data has been compromised in a breach. Your bank, credit union, and credit card companies may also alert you about suspicious activity associated with your accounts.
Data breach websites
Websites like Have I Been Pwned allow you to check if your personal information has been involved in known data breaches.
Monitoring services
Services like LifeLock offer continuous monitoring of your personal information and alert you if it appears in a data breach. You can also use online privacy scans like this one from Experian to determine if your data has been exposed.
The Best Protection is Prevention
When it comes to ensuring your financial security, the best protection is prevention. At Marine Credit Union, we have your financial security in mind. Download our Identity Theft Workbook and you’ll be prepared to act if you receive a fraud alert, get notified of a data breach, or see a suspicious transaction on your account.
Learn more about how to protect your personal information from identity theft, fraud, data breaches, and more:
