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Equifax and Credit Protection, Blog from Matthew J Mulholland

On Friday, September 8th, Equifax (NYSE: EFX) announced a “cybersecurity incident,” where the birth dates, credit card numbers, and Social Security numbers for approximately 143 million U.S. customers were released to malicious hackers. With the U.S. population at an estimated 323.1 million, 4 out of every 9 Americans were affected.

Exposed users are at risk of having their identity stolen, with the possibility of risking financial loss. The Federal Trade Commission estimates that up to 9 million Americans have their identities stolen every year (before this unprecedented privacy leak).

Equifax claims to have discovered the breach on July 29th, with workforce solutions president Rodolfo Ploder, U.S. information solutions president Joseph Loughran, and CFO John Gamble Jr. selling a combined $1.7 million in shares in the trading days following the discovery. 

In the uproar following the announcement, Equifax established a resource that allows you to check if you were affected. Attached to that resource was an agreement that by utilizing the website, you (the consumer) relinquish your right to sue Equifax directly, or participate in a class action lawsuit. Alternatively, you can use this chatbot to assist in suing Equifax, or you can wait to participate in a class-action lawsuit that will most likely be established in the upcoming months.

Unfortunately, you, as a consumer, are subject to the safety standards of the Consumer Data Industry Association, a trade organization representing the four national traditional consumer reporting agencies, Equifax, Experian, TransUnion, and Innovis. While these four companies help determine your overall creditworthiness and track your repayment history and behavior, they are for-profit with no government affiliation. You, as the consumer, don’t get to choose which of these agencies get access to your data, so you can’t insure individually against any one of their data breaches.

Because of this, our team at Hotaling recommends you check your credit report immediately and individually enact credit freezes at each of the four agencies.

While many credit reports are advertised with catchy jingles on primetime television, the only site that is endorsed by USA.gov is www.annualcreditreport.com. This site does not ask for credit card information, nor do they provide any service beyond providing your credit report. The US Government requires that the three major credit agencies give you a free copy of your credit report every year.

Freezing your credit prevents the use of your credit report by anyone. This means new credit cards and loans are immediately rejected due to inability to access credit scores. The freeze itself comes with a small cost (usually around $10 but varies state by state). In order to resume normal credit-seeking activities, a small fee (also usually around $10 but varies state by state) unlocks the credit report, either for short times or permanently. Four states (Kentucky, Pennsylvania, Nebraska, and South Dakota) mandate that these credit freezes fall off after seven years automatically.

Below are the individual links (with supplemental material) to begin these freezes.

Equifax Freeze Link:
(Equifax is allowing anyone to freeze their credit for free for the next 30 days)

Experian Freeze Link: (Experian State Fee Info)

TransUnion Freeze Link: (TransUnion State Fee Info)

Innovis Freeze Link: (No Charge!)

 

Matthew J Mulholland, Investment Advisor, Hotaling Investment Management, LLC