5/30/2019

Free Telstra Credit Hack

As widely reported, the credit reporting bureau Equifax was recently hacked. If you have a credit report, you’re likely one of the 143 million Americans whose data may have been exposed, according to the Federal Trade Commission.

For this reason, consumers should also enroll in several free credit score services. I use several of them and receive email alerts when changes appear on my credit report. You can find a list of free credit score services here.

Next, check your credit reports now so that you have a baseline. You can get your free annual credit reports from www.annualcrediterport.com. You can also get your reports along with your credit scores directly from FICO.

If you see any items on your credit reports that you don’t recognize, contact the creditor and the reporting bureau immediately. You’ll need to follow steps to report the potential identity theft and get the account removed from your credit report. Visit www.identitytheft.gov to get started on a plan to remedy this issue.

Think about placing a freeze on your credit. This will make it very difficult for someone to open a new credit account in your name. Placing a credit freeze may cost money, and removing it can cost, too. If you’re at a low risk of credit theft, this can be a hassle. But if you’re at high risk, it can be a wise move. In some states, if you’ve already been the victim of credit fraud, you can place and lift the credit freeze for free.

Place an extended fraud alert on your file. If you’ve been a victim of identity theft, you can place an extended fraud alert on all three of your major credit bureau files. This will let you get two free credit reports within twelve months. It will also require credit reporting companies to take your name off of marketing lists for prescreened credit offers. This isn’t as airtight as a credit freeze, but it may help.

You can also set a type of fraud alert that will warn potential creditors to get extra identification from you. It can’t require that they do so. But this type of alert will tell them that you’ve been the victim of fraud. Then, they’re more likely to ask for additional authentication when someone tries to open a new account in your name.

This kind of fraud alert could be helpful if you know you’ll need to apply for credit in the near future, and don’t want to place a freeze on your credit. It gives you an extra layer of protection without the freeze, which also prevents you from opening new accounts.

Keep monitoring your accounts. If you have an old credit card you haven’t used in a while, start looking at the monthly statements. Sign up for email alerts for potentially fraudulent activity with your creditors and banks. Keep looking at all of your statements with a fine-tooth comb. Even if you’ve placed a freeze on your account, it won’t keep identity thieves from charging to your existing accounts.

Make a plan to file your taxes next year. It’s possible that the Equifax hackers will sit on Social Security numbers until tax filing season. Then they’ll try to use your tax information to file for a tax return in your name before you can. The best way to beat this tactic is to file your taxes as early as possible.

Generally, these are all steps you should take on a regular basis, anyway. Whether or not your information was compromised in the Equifax breach, you need to consistently monitor your credit report to ensure that you don’t become the victim of identity theft in the future.

A monitor displays Equifax Inc. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Sept. 8, 2017. The dollar fell to the weakest in more than two years, while stocks were mixed as natural disasters damped expectations for another U.S. rate increase this year. Photographer: Michael Nagle/Bloomberg

According to Equifax, the breach lasted more than a month, from mid-May until July of this year. The hackers gained access to people’s names, Social Security numbers, birth dates, addresses, and even some driver’s license numbers. They also got credit card numbers for 209,000 people and dispute documents with personal information for 182,000 consumers.

Unfortunately, at least some of your information was likely involved in this breach if you had a credit file with Equifax. I can tell you that my data was compromised. Let's walk through what you need to do to first determine whether your information was compromised. Then we'll look at what you can do about it.

The first step is to visit www.equifaxsecurity2017.com to find out if your information was exposed. The site includes a Potential Impact tab, where you can enter your last name and the last six digits of your social security number. (Be sure you’re on a secure computer and internet connection when you’re doing this!) This will tell you whether or not your information was compromised.

Enroll in free credit monitoring even if the site doesn’t say you were affected. You’ll be able to find out when you can enroll at the site linked above. You’ll have from that date until November 21, 2017 to enroll for a free year of credit monitoring.

Here I should add that one year of free credit monitoring is totally inadequate. The Equifax data theft can have life-long consequences for consumers. When a credit card number is stolen, you simply get a new card with a new number. You can't, however, get a new date of birth or Social Security number.

Dear Lifehacker,
I recently discovered several unauthorized charges on my credit card. I called the credit card company and they're investigating, but what other steps do I need to take to protect myself?

Signed,
Fed up with Fraud

Dear Fed up,

We're sorry that's happened to you. Unfortunately, about 4 out of 10 US cardholders report having had the same nerve-wracking experience as you. Identity theft and credit card fraud have been on the rise in recent years, thanks to the growing horde of hackers who are smarter and more capable than ever. All hope is not lost, though. With time and patience—and the steps below—you can secure your accounts and credit information, and get back your peace of mind.

Step 1. Call the Credit Card Company

This is the very first step to take (so kudos on acting quickly). In some cases, your liability for fraudulent charges depends on how soon you report them to the bank. Besides that, the sooner you notify the bank, the quicker they can start working on your case and getting this resolved.

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During the investigation, the credit card company will usually reverse the charges (so you won't have to pay for some stranger's $5000 shopping spree on your billing statement). They should also issue you a new card (with a new account number) and close the old one so further fraudulent charges can't be made to it.

When you get your new card, remember to update any accounts where the card is used for automatic or recurring billing.

This process should only take a couple of days (sometimes just one day waiting for the new card), but in some cases it could take a month to resolve.

Step 2. Monitor Your Credit Card Accounts

In most cases, putting a stop to the charges and getting a new account number are all you need to do, but you should also monitor all your credit card accounts just in case this is more than just a singular event or a sign of even more damaging identity theft.

To monitor your accounts, you just need to keep an eye on your statements or regularly check recent activity. Be especially on the lookout for even small charges. Fraudsters know that amounts under $10—like the recent $9.84 scam—often go unnoticed.

There are also other easy ways to stay vigilant, long after your credit card fraud case is resolved:

Set up activity alerts on your accounts. Most bank and credit card online accounts let you set text or email alerts for all kinds of activity, such as charges over a certain limit.
Use free financial tracking apps.Previously mentioned BillGuard watches for charges flagged by other BillGuard members, and notifies you if your card(s) have similar ones; it also now tracks your finances, Mint-like. Speaking of Mint, the financial tracking app can also alert you to unusual activity on your accounts. If you usually only spend $50 a week on shopping, for example, Mint will let you know if a charge greatly exceeds that. (If you're—understandably—concerned about security for these credit card and bank tracking services, know that both use bank-level encryption and only have read-access to your account activity, so money transfers and changes to your account aren't possible even if someone could hack into one of those accounts.)
Use free credit monitoring services.Previously mentionedCredit Karma and Credit Sesame keep an eye on not just your credit score, but also new credit inquiries and balance changes. (Credit Sesame's report is from Experian, while Credit Karma provides scores from TransUnion.)

Step 3. Know the Signs of Bigger Identity Theft—and What to Do If Someone's Stolen Your Identity

Fraudulent charges on your credit card don't necessarily mean a data thief also has access to other personal information that could do more damage, like drawing down your bank account or social security fraud, but it still pays to know how identity theft works so you don't end up with even bigger issues.

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To clarify: Credit card fraud is a form of identity theft that happens when the thief uses your card number to buy things. That can happen when someone gleans your credit card number (and signature) from a receipt, gets access to any other document with your account number on it, or your card comes into contact with fake ATM or other skimmers.

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Even more debilitating identity theft happens when someone uses your personal information (which can include your credit card number) to not just make charges, but also perhaps open other financial accounts, get government documents, and/or otherwise impersonate you for their benefit. It's even less funny than the Jason Bateman movie Identity Thief and can be terribly expensive and trying to repair.

(If there's any silver lining to your credit card fraud experience, it may be that kick in the butt to check if any of your other information is compromised. According to Daily Finance, most people don't spot identity theft on their own; most of the time, financial institutions notify the victims. 20 percent of people do find it after spotting fraudulent charges on their statements, but only 8 percent of other identity theft victims discover the fraud themselves.)

Besides suspicious credit card charges, identity theft red flags include: withdrawals from your bank account that don't make sense, applications for credit or other accounts being turned down, collection notices for debts that aren't yours, and unfamiliar accounts on your credit report (which you can check for free every year at annualcreditreport.com). See a whole list of red flags at the Identity Theft Resource Center.

If you suspect you might be a victim of identity theft, in addition to contacting your credit card about fraudulent charges and monitoring your credit card and bank accounts, you should take action to correct the problems immediately:

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Place a fraud alert or credit freeze with the three credit bureau agencies (Experian, Equifax, or TransUnion). A credit freeze is generally more foolproof, as it usually stops all access to your credit report, whereas a fraud alert simply requires more verification of your identity before granting credit in your name. There may be a cost to place or lift the freeze, though, depending on your state laws. Learn more about these two protections at the FTC.
Review your credit reports from the three bureaus. If you placed a fraud alert or credit freeze, you should get a free copy. Dispute all inaccuracies.
File a police report and a report with the FTC. Depending on the nature of the identity theft, you might need records of the police report and information you report to the FTC to show creditors and others proof of the crime.
Contact any company that might have been affected. For example, if your Social Security Number might have been compromised, contact the Social Security Administration and the IRS. Also contact companies that have a fraudulent account open in your name to have the account frozen.
Keep good records of each communication with creditors, credit reporting agencies, and other companies while trying to fix this problem.

What about identity theft protection services? In general, the ones offered by credit card issues aren't worth the money. The Wall Street Journal notes that third-party services like LifeLock and Trusted ID will run you at least $150 a year, but their most common tactics are setting up fraud alerts and credit freezes on your credit reports—things you can do yourself. (Note, however, that if you were a victim of a breach, like the Target one, you could be eligible for free credit monitoring, in which case go ahead and use it.)

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Step 4. Stay Safe Going Forward

Most people never find out exactly how their credit card numbers (or other personal information) got into the wrong hands. While some things, like data breaches, are beyond your control, there are several things you can do to minimize your security risks.

We've talks about most of these online and offline protections before, but consider this a security checklist review:

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Only shop on secure HTTPS sites belonging to merchants you trust (we recommend using the HTTPS Everywhere extension for Firefox, Chrome, and Opera).
Use virtual credit card numbers if your bank offers them—or consider switching to one. A virtual number hides you actual account when you shop online and can also limit additional charges.
Don't save your credit card information with online merchants. This is a hassle, because you have to enter the card manually every time you shop online, instead of saving the card in the account, but it's an extra precaution that could give you more peace of mind.
Make sure your computer is up-to-date with anti-malware protection. Our favorite for Windows is Avast, but we also recommend occasionally manually running another anti-malware tool like Malwarebytes Anti-Malware to catch and fix anything that's slipped through.
Check ATMs and other card readers for signs of tampering. These include obscured flashing lights on a reader, cameras above the machine, or loose keypad or other parts. You should also always cover your hand when you enter your PIN in the machine
Consider getting a RFID-blocking wallet. Thieves can scan your cards that have radio-frequency identification chips (RFID) without you even noticing. There are lots of RFID-blocking wallets you can buy or you can make your own(even an Altoid tin could work).
Never give our your social security number unless you trust the organization and know it's necessary (for example, for your tax forms).
Shred all sensitive documents before you toss them out, and keep those you can't shred safely locked up. (If you've gone paperless, make sure those files are encrypted on your computer.) Sensitive documents include financial account statements, medical information, anything with your social security number on it, tax documents, and so on.

Stay safe.

Love,
Lifehacker

Photos by evryka (Shutterstock), PSDgraphics, Alliance (Shutterstock), Credit Karma.