2008 Boasts Most Data Breaches Ever

Last month the largest case of identity theft to date was reported. One identity theft ring succeeded in stealing the personal information of over 40 million people. If that news alone isn’t enough to cause panic, a report that shortly followed might be. The Identity Theft Resource Center, a non-profit group based out of San Diego, CA, recently reported that as of August 22, the first eight months of this year boasted more security and data breaches than all of 2007 combined.

By 9:30 am on August 22 there had been 449 reported cases of data breaches in 2008. The 2007 total for January-December totaled only 446. With a little over four months left in the year this could signify that id theft is getting worse and not better despite an increased public awareness of the crime. The Identity Theft Resource Center also suspects that this new number is not exactly accurate due to variables like under reporting of data breaches and incidents that involve multiple businesses being reported as a single incident. In reality, the number of data and security breaches for the year could be much higher.

Currently, this report indicates that 22 million identities have been compromised in 2008, but the Identity Theft Resource Center calls this number “grossly incomplete” because in 40% of the documented cases the number of compromised identities was not reported. So, the only factual truth it is safe to conclude is that more identities have been compromised this year than ever before.

The nature of the breaches ranged from dishonest employees stealing employee or client data, to lost or stolen laptops and even computer software or technology systems that allowed thieves to steal other people’s information. The variety of agencies and companies affected was even more diverse.

Banks, hospitals, high schools and colleges, gas stations, retail outlets, airlines and government and military offices have all been compromised. From hardware stores to gas pumps, anywhere you may have swiped your card could have easily been a target. Or anywhere you may have sought medical attention or applied for school for that matter. If this report teaches us anything it’s simply that your personal information is no longer safe anywhere.

What You Can Do About It

1. Check your bank and credit card statements regularly. One of the quickest ways you can learn about identity theft on existing accounts (or credit card fraud as it is commonly known) is to check your monthly statements carefully. If someone has been spending and charging in your name it will be evident in the unauthorized purchases that show up on these statements. However, if someone opened a new account in your name (by stealing your social security number) it will not show up on existing account statements.

2. Check your credit report at least once a year. The government has made allowances for consumers to have access to one free credit report from each of the three credit reporting agencies (Experian, TransUnion and Equifax) each year. In the very least, it is advisable that you visit annualcreditreport.com and obtain your reports so you can see if there are any accounts you don’t recognize that have been opened in your name. But it is also important to realize that if someone has used your social security number—but a different name—to open a new account or to apply for a job it will not show up on these reports.

3. Purchase ID Secure. One of the most comprehensive ways to monitor your credit and your identity is to hire a professional service to do it for you. ID Secure might greatly increase your peace of mind as well as the level of protection guarding your identity. For just $1 for the first month, and just $12.99 a month after that, a professional identity monitoring company will use advanced web crawling technology to search the internet and public records to make sure that your social security number, credit and ATM cards and other personal information isn’t being fraudulently used in any way. ID Secure makes sure your identity is being monitored 24 hours a day seven days a week helping to keep it safe. If fraudulent activity is suspected, you will be informed immediately. You can learn more by clicking here. 

4. Stop using your debit card. If an ATM or debit card is reported lost or stolen before any fraudulent activity takes place, then you will not be held responsible for any fraudulent charges made to your account. In the event that a card is reported lost or stolen two days after fraudulent purchases are made, you cannot be held responsible for more than $50. But, if it takes between two and sixty days for you to notice the fraudulent activity and report it you may be responsible for up to $500.

But considering that not all fraudulent activity is the result of a stolen card (but is the result of a stolen card number) it might be harder to notice this type of fraud within the two day window unless you check your bank statements every single day. It’s also important to note that banks have eleven days or longer to credit the money back to your account depending on how quickly your investigation moves. So, you might be susceptible to bouncing checks or running out of cash in the interim.

Credit cards, however, seem to have more to offer a victim. As long as the fraudulent activity is noticed within 90 days, the victim cannot be held responsible for more than $50 in purchases. Because cash was not stolen from you, although credit was abused in your name, you don’t have to fight to have actual funds returned to you. And, most people check their credit card statements more consistently than they check their bank statements since credit card bills need to be paid every month, so the theft is easier to detect.

5. Be selective about who you give your social security number to. Although many places claim to need your social security number—the doctor, your child’s school and even your cable company—not all of them actually do. Most of these places cannot legally decline you service if you abstain from divulging your social security number. The fewer people who have your social security number on file, the lower your chances of that number being stolen. So don’t be shy about asking companies why exactly they need it and if there is any other information you can substitute instead. You only get one social security number, so guard it carefully. Unlike bank accounts, you can’t just go and get a new one if something happens to the one you have.

Data breaches are a growing problem. Now you don’t just need to worry about how you handle your information, but also about how others handle it as well. Chances are your important information isn’t quite as important to someone else as it is to you. So, make sure you do everything in your power to protect yourself in case those you trust don’t succeed at protecting you.