What exactly is a data breach and why should I care?

Data breaches have become common, and if you’ve actively used online services in the past year, you might have been affected by them. For example, the Advance Auto Parts breach exposed more than 2.3 million users’ personal information, while a recent AT&T incident allowed hackers to access around six months of customer call and text interactions. But what do bad actors do with all this data?

John from Jackson, Mississippi, asked a similar question that I want to highlight and address because it helps all of us:

What do you mean when you say a company has exposed 2.3 million or whatever in a data breach? This happens often but there is never any follow up. It’s like throwing address labels in a trash can and then they are carried to the landfill. So? What really happens with a data breach?

I get what you’re saying, John. Data breaches make headlines, but you rarely hear about the fallout. It’s tough to link a specific breach to a specific problem later on. Below is a detailed look at what a data breach actually means.

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Data breach explained

A data breach occurs when an unauthorized person gains access to information that is meant to be confidential, private, protected, or sensitive. Think of it this way: You have personal information that you trusted a friend with, but while sharing it, someone who wasn’t supposed to know it overheard it.

A real-life example is the AT&T data breach mentioned earlier. Your call logs and text interactions that were meant to be private and which you trusted AT&T to protect ended up in the hands of hackers. These details can now be used by the bad actors to scam you.

Data breaches can happen in a few ways. Hackers might target specific organizations or launch broad attacks hoping to steal certain kinds of data. They can also use targeted cyberattacks to go after specific individuals.

Sometimes, data breaches occur due to honest mistakes or oversights by employees. Weaknesses in an organization’s systems and infrastructure can also leave them vulnerable to data breaches.

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What happens once the hackers have the data?

Once the hackers obtain protected and confidential data, they have various ways to profit from it. They can use compromised data for illegal activities, including identity theft, financial fraud, spamming, or even extortion. Information such as email addresses and phone numbers can be used in phishing scams.

Sometimes, this data is also posted on dark web forums for sale. It can be purchased by other criminals, who may use it for various illicit activities. Just as you don’t hear about every burglary, homicide, or battery, you don’t hear about each instance of these criminal activities.

They only make headlines when something significant occurs, such as the incident where hackers scammed a Colorado woman out of $25,000 or when a man was arrested for scamming a Kalispell woman of $150,000.

Data breaches impact not only customers but also the companies involved. These companies may face government fines or lawsuits. For example, AT&T is currently dealing with a class-action lawsuit due to a security breach in 2022 that exposed months’ worth of data from nearly all its customers. Similarly, T-Mobile is facing a lawsuit related to a data breach that affected millions of people.

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How to protect yourself from data breaches?

It’s primarily the responsibility of companies or online services to keep your data safe, but if it gets exposed, here are some tips to keep in mind:

1) Change your passwords

If hackers have recorded your passwords, they could access your online accounts and steal your data or money. ON ANOTHER DEVICE (i.e., your laptop or desktop), you should change your passwords for all your important accounts, such as email, banking, social media, etc. You want to do this on another device so the hacker isn’t recording you setting up your new password on your hacked device. And you should also use strong and unique passwords that are hard to guess or crack. You can also use a password manager to generate and store your passwords securely.

2) Enable two-factor authentication

Activate two-factor authentication (2FA) for an extra layer of security on all your important accounts, including email, banking, and social media. 2FA requires you to provide a second piece of information, such as a code sent to your phone, in addition to your password when logging in. This makes it significantly harder for hackers to access your accounts, even if they have your password. Enabling 2FA can greatly reduce the risk of unauthorized access and protect your sensitive data.

3) Monitor your accounts and transactions

You should check your online accounts and transactions regularly for any suspicious or unauthorized activity. If you notice anything unusual, immediately report it to the service provider or authorities. You should also review your credit reports and scores to see if there are any signs of identity theft or fraud.

4) Contact your bank and credit card companies

If hackers have obtained your bank or credit card information, they could use it to make purchases or withdrawals without your consent. You should inform your bank and credit card companies of the situation. They can help you freeze or cancel your cards, dispute any fraudulent charges, and issue new cards for you.

You should also contact one of the three major credit reporting agencies (Equifax, Experian, or TransUnion) and request a fraud alert to be placed on your credit file. This will make it more difficult for identity thieves to open new accounts in your name without verification. You can even freeze your credit if need be.

5) Use personal data removal services

Consider investing in personal data removal services that specialize in continuously monitoring and removing your personal information from various online databases and websites. These services employ advanced tools and techniques to identify and eliminate your data from people-search sites, data brokers, and other platforms where your information might be exposed. By using a data removal service, you can minimize the risk of identity theft and fraud, especially after a data breach. Additionally, these services often provide ongoing monitoring and alerts, keeping you informed of any new instances of your data appearing online and taking immediate action to remove it.

A service like Incogni can help you remove all this personal information from the internet. It has a very clean interface and will scan 195 websites for your information and remove it and keep it removed.

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6) Sign-up for identity theft protection

Identity Theft protection companies can monitor personal information like your home title, Social Security Number (SSN), phone number, and email address and alert you if it is being used to open an account.  They can also assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals.

One of the best parts of using Identity Guard includes identity theft insurance of up to 1 million dollars to cover losses and legal fees and a white glove fraud resolution team where a US-based case manager helps you recover any losses.

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7) Alert your contacts

If hackers have accessed your email or social media accounts, they could use them to send spam or phishing messages to your contacts. They could also impersonate you and ask for money or personal information. You should alert your contacts and warn them not to open or respond to any messages from you that seem suspicious or unusual.

Kurt’s key takeaway

The impact of a data breach may not be immediate, but once your data is on the internet, it can be misused by bad actors. They can steal your hard-earned money, cause emotional and mental harm, or affect your loved ones. So, even if you don’t see the immediate impact of a data breach, take action. Ensure your devices are protected, and keep a close eye on your bank accounts.

Have you ever noticed unusual activity in your accounts after a data breach was reported? Let us know in the comments below.

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