930in716 September 19, 2017 Equifax breach - Need to KNOW!

Tuesday, September 19th

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

It's 93716. All about and with facts and the breach and what it means to you or could. On the podcast. Somebody shop and Ahmad aren't so this is going to be heading. Think about somebody being able to take your data. And before you even get around to filing your tax returns somebody using your data to be able to. File your tax returns and claim a refund. I'm Tim Wenger New York attorney general Eric Schneider man is pressing Trans Union and Experian. For a cyber security update following the recent breach at the other major credit reporting service. The expose sensitive information belonging to 143. Americans hanging in the balance. The Democrat is also asking the two companies whether they'll consider waiving fees for credit freezes. Schneider man's office is investigating the cyber attack which impacted some eight million New York residents. Let the scans begin as we hear from Marci Gonzalez on a new phone scam following that Equifax breach. A new warning about gamers posing as Aqua facts tricking consumers into handing over their personal information to criminals calling and emailing saying after the credit monitoring company's recent data breach they just want to verify account information. The Federal Trade Commission explaining concerned consumers are then asked to share personal and financial deet tails they can be used to steal their identity is the Equifax breached potentially impacting a 143. Million people the hackers accessing Social Security numbers birth dates addresses even some drivers license numbers and credit card numbers Jean king's says someone opened an account in his name's sue after the hack. Somebody shop and my Daryn so this is going to be ahead. Consumers can check the web site Equifax security 2017 dot com to see if they've been potentially impacted the company now also offering free identity theft protection and credit monitoring. And some advice from experts consistently check your credit report and never share information with anyone who calls or emails you. So what do you need to know what should you know. Some really important information today on the podcast is Susan and Brian go in depth with banking expert. Ed Hutton from Niagara University a regular contributor on WB EN some really good stuff. Well personally need to know how extensive it is the information that Equifax has collected on you as well as all of the other credit bureaus so. Going back you think about the first time that you ever got to credit card or ever took out any type of loan. What happened is that all of the financial services companies the banks and credit card companies even the store credit card companies. Have agreed for the last thirty years or so that whenever somebody gets credit. That they would report that information about whether or not you paid on time. How much money you took out how much money you borrowed whether you paid off the loan or open new credit or even if you made it inquiry to open credit. That they would. Share this information in effect sell this information to us at a private companies known as they the credit reporting industry. Now the credit reporting industry serves a really valuable purpose because if all bank wants to open up. Credit for somebody they need to know have you been. Somebody who pays back the loans that you get so it's a really important need that they have to be able to do that we wouldn't be able to. To get credit without it. But in the meantime what's happened is that these three companies that three companies in the United States to do it. Have been able to amass really a lot of information about everybody and it's information that you might not know that they have. How would you know if they vanity it's basically the way you described it. You described just about everybody. And then that's right it's anybody that has ever. To apply for credit. He's going today is going to have this and so there are these. Private companies and I I think we we we forget how on regulated this industry is. These aren't banks so they're not subject to the same. Oversight from regulatory from federal regulatory agencies that we're used to and banks like that. Federal Reserve or others so they're really a very very large industry with a lot of data that really is very very lightly regulated. Why is that why why aren't there would be great relations on these companies that have such vital information on nearly everybody who lives in the country. Well weeks and that's a great question and answer great question this is one of the things that as a result of financial services reform. That Dodd-Frank act that everybody talks about this was one of the things that Dodd-Frank was trying to get to. Well the reason the weather's the consumers consumer protection safety board. That was set up but. What's happened in the last couple years that that. For a lot of different political reasons that really hasn't taken the time to develop any regulations yet will in the meantime we're all vulnerable our right absolutely absolutely if you think about. When you think about what happened to think about somebody maybe opening credit in your name but. What happens is that data that Equifax and the other credit agencies use. Is used for a lot more than that for example to prove who you are to Social Security online. You go through when you have to answer of what's your question anybody's tried this you have to answer about two questions about. When was the last time what was the last time that you borrowed money for a car or what was the amounts of the purchase that you made for house. And all of that information that you use when you verify who you are Social Security is actually coming from one of these credit data as it's coming from Equifax. And so that data is used to establish your identity. And so with having that data compromise means that somebody has a much better chance to be able to impersonate you too not just. A bank but also to Social Security so it's much more than just somebody stealing your credit card number and using Mac aren't Aaron anywhere else it's somebody stealing information and being able to do and who knows one well yes and especially now we we we don't think about it because so we're sort of batted that season right now but think about tax returns. OK so think about somebody being able to take your data. And before you even get around to filing your tax returns. Somebody using your data to be able to file your tax returns and claim a refund. On your tax returns now by impersonating who you are and having that directed to a bank account that they've set up. And then when you get around I don't know about you but I don't. I don't really rush to file my tax return guy usually good about last minute and then when I do that finding that somebody else has already submitted. And taken my reef so we haven't even really seen the ramifications of this yes that's right that's right and one of the problems that happens is that. I think the people that have engineered this breach the people I are pretty sophisticated. And they understand that we there's a lot of there's a lot of talk about it right there are people going to be very sensitive to it. But then people tend to forget they tend to forget they other things come up. And I I think it where we need to be really vigilant maybe isn't so much in the next thirty days in the next sixty days through the next ninety days. But next year in the year after that because that's when. I I think a sophisticated. Guy hacker that would engineer this made might. Trying to exports of its own abilities. We've got F Hutton in studio professor and director of the financial markets laboratory at Niagara University right all of this information now about this act affects breach. I guess we know what should somebody do and we just heard Dave mention freeze your credit a lot of people are asking about that. He had an and I would agree with that data is probably one of it. Most important things that you can do right now I went ahead and I did it last night with my accounts and again remember that it's not just death at a fast but there are three different credit depth. Experian Trans Union inept offense or three different so. Credit reporting agencies that you need to do this with it's really it it took about an hour it wasn't that bad. I was able to do it all online. In a couple of times I think maybe their servers were a little bit overwhelmed so I had to tried two or three times day get on but. Within an hour or so. I was able to go to the website here's the way that it works. You go onto the website and you have to give some information. In order to prove who you are so there's the first things that make sure that your you've got to the right site. And that you haven't been the victim about Phishing site or or somebody else you know doing that so I didn't see that I saw that the look like they were taking me to the rightly so once you do that you go on and you place a freeze on your credit now. When you do that what happens is that you get a pin number. Personal identification code and it's not just a four. Number code that is easy to remember is how long complicated code. And what happens is that before any. Bank or any type of credit. My gay agency. Would be able to pull your credit report you have to unlock it. By using this pit now here's the problem. Unlike some other pins if you lose this page and there's no easy way to get it back. Because remember that's one of the things that you're trying to guarantee is that to make it very very difficult for anybody to impersonate you. So when you get this can really make sure you put in a safe place so. Saved the pin. Anytime that you go to get credit remember that you're not going to be able to get credit unless you unlock your credit to report. And then once you do that once that credit report has been poll Lackey back up again. And we left off last time talking a little bit about a credit. Threes and how you do it some of the steps. A bull with some people might wanna know if they are undergoing credit monitoring or I have to do work credit reports soon I have to give their credit information now it's. Should everybody be doing a credit freeze is it right for everybody. Well I. I don't see a real big downside. To aid getting a credit freeze has long because it puts you in control of who has your information. And it's going to be a lot of times when you want somebody detectable credit report. I just went through the process of buying a new house. In order to get that mortgage today at the bank that I got the gap now mortgage from had to access my credit so yes they're going to be situations but what I wanna do is I want have control over who sees that information. So by doing a credit freeze you do that. The second thing though. Is to make sure are a couple years ago about fifteen years ago there was a law passed that said that everybody has free access. Once a year to their credit reports from each of the three major credit reporting agencies. So take advantage of that. Make sure hey you know what maybe pick on your birthday. And your birthday I've doesn't sound like a lot of fun but I'm a finance professor so yeah this is what I do on my birthday I download my credit reports. OK you can get one from each of the credit reporting agencies. Go through is there anything that you see on that credit report that you don't remember doing and it's always gonna be easy because sometimes you don't know. Who might be pulling your credit and a lot of times. Companies will pull your credit to make those unsolicited credit card offers you know you write you an hour talking about in the mail you get all of those things you know if you qualify for free credit report if I free credit card. That's because they've pulled your credit report without you knowing about it and now they're extending credit to. All right so by locking that you can prevent that from happening is there a downside. To freezing your credit. Downside is that when you go to law applied for credit they credit card be their financial institution will not be able to easily access so really when you go into a store and they say you'll get 10% off by signing up for our credit card. They actually run a credit report it takes only a few seconds for them access your credit report and decide yes we'll give you that discount you lose out on that. If you have frozen your credit. That's a good thinkers if I asked about maybe it's a lot of MD calls. Are we are joined by Ed Hutton who lives in studio director of the financial markets laboratory. And Niagara university and we've been talking about freezing your credit in wake of the Equifax breach yet but there's also. Plenty of services out there. That promise to do a sort of credit monitoring to protect you against whether it's. People stealing your credit card information Social Security number any of those things. I even things from banks were they I know I've gotten several emails from my bank saying. They've paid a small the every month animal protect your data and saying they shouldn't you be protected and I did anyway. I'll what do you think of those kinds of solicitations. I think there's a couple of different things that are going on right now. And is it talked about earlier that for the credit monitoring industry this is not a regulated industry. Hey so a lot of the same protections regulatory protections that we get from banks don't apply to the current credit monitoring industry so I would tell you. Bad I feel a lot safer if I'm going to sign up for a service like dad if I do that with me. Regulated industry like the banking industry so at least for me I know. I know the kind of slow regulations and that kind of regulatory scrutiny there are based and that makes me feel a lot better about dealing with the bank. If I get days solicitation from aid. In email or something. I don't really know who daddy is I don't know who that company is I don't know if they're gonna take. This same care or at this I'm just gonna be getting myself and at the same sort of situation so. I would say if it's a company that you've done business with if it's one of our local banks if it's one of the national banks yet in a lot of cases that might be worth that it might be worth it to pay. That a few dollars a month. Just to have that protection especially over the next year because this is before we don't really know what's happening. Right now with this information how it's being used. Do it with somebody you trust duet with an institution dad is going to be highly regulated that that gives me a lot of comfort. Well there's some reports of X gamers that are out now they're randomly calling people and asking you to verify your account information you should never do that no absolute absolutely now that that's right. Because this is. This is going to be the situation where and what we call Phishing attacks. You know where people saying. Please verify this information is basically just another way to be able to. To steal your identity so deal with. That's somebody you trust OK and again going back to the we have a great banking industry Wednesday or you have. People you can go into and talk to and I know we ought to do a lot of things over the Internet but you know what. Sometime it's just going into a bank in talking to a person. It you know in the that you trust and its ban on the corner there for the last. A couple of decades is worth it. Thank you mention freezing your credit debt Equifax at some of the other credit services doing that maybe your best case scenario especially because. Actually knowing if you spend impacted by this breach that's going to be pretty tough to figure out. It is and what I'd recommend people would take take a couple of steps first step dues that you should do is. Freeze your credit OK like I said before doesn't take all that long you've got to invest the time it probably takes an hour. Or so to be able to do some do that with each of the three credit monitoring agencies second thing after you do that. Pull your credit reports so from each of the different credit monitoring agencies you can get your full credit report. Hey you know what it's actually kind of fun to look back and say oh yes you know there's things from 25 or thirty years ago. That are on there make sure it's accurate. And at that point you can. No no that you've got to freeze on and know that you know what credit has been extended to you and and go from there take the steps to protect your passwords set up a secure password use what we call two factor identification where. They have to contact you either on a cell phone or some other type of thing to be able to verify your identity. Do that take the time in any kind of use this as as as a springboard for being much more secure that use credit freezing your credit. Is free right you're not paying to do that you should not have to pay any money to freeze your credit it's your credit. What you're doing is you're not allowing somebody to access that information without your permission and you're freezing your credit you're now freezing your credit cards that's right role and answer the attacks I knew he had that's right it doesn't do anything to your existing credit doesn't make it more. Difficult for you to be able to. To use your credit card what it would speak it more difficult to do is if you apply for a credit line increase. So if you apply for providing increased that's gonna require them to go ahead and pull another credit report and you're gonna have to remember. That pin that you got when you froze your credit. So that you can call and basically unfreeze your credit let them do the extension. And then freeze again. Great and useful info for sure. We're back terror. That's 930 and 716. We're back tomorrow with a net a radiation from the studios of WD EA and buffalo law.