Posts Tagged: ID Experts

Dec 15

OPM Breach: Credit Monitoring vs. Freeze

Many readers wrote in this past week to say they’d finally been officially notified that their fingerprints, background checks, Social Security numbers, and other sensitive information was jeopardized in the massive data breach discovered this year at the Office of Personnel Management (OPM). Almost as many complained that the OPM’s response — the offering of free credit monitoring services for up to three years — won’t work if readers have taken my advice and enacted a “security freeze” on one’s credit file with the major credit bureaus. This post is an attempt to explain what’s going on here.

OPM offices in Washington, DC. Image: Flickr.

OPM offices in Washington, DC. Image: Flickr.

Earlier this week I got the following message from a reader:

“I just received official notification that I am affected by the OPM data breach. I attempted to sign up for credit monitoring services with the OPM’s contractor ID Experts at, but was denied these services because I have a credit security freeze. I was told by ID Experts that the OPM’s credit monitoring services will not work for accounts with a security freeze.”

The reader continued:

“This supports my decision to issue a security freeze for all my credit accounts, and in my assessment completely undermines the utility and value of the OPM’s credit monitoring services when individuals can simply issue a security freeze. This inability to monitor a person’s credit file when a freeze is in place speaks volumes about the effectiveness of a freeze in blocking anyone — ID protection firms or ID thieves included — from viewing your file.”

I reached out to my followers on Twitter to gauge their reactions to this. I wrote: “Finish this sentence: Lifting a freeze to enable credit monitoring is like….” Here were some of the notable responses:

@sdweberg 10:22pm …shooting your rottweilers and paying the neighbors a monthly fee to “keep an eye on” your house.

@shane_walton 10:15pm …installing flash to watch a flash video about the evils of flash.

@danblondell 10:13pm …leaving the storm doors open to keep an eye on the tornado

@flakpaket 12:48am …leaving your doors and windows unlocked so that burglars can set off your indoor motion sensors.

@ShermanTheDad 8:25am …taking your gun off safety to check and see if it’s loaded.

Removing a security freeze to enable credit monitoring is foolhardy because the freeze offers more comprehensive protection against ID theft. Credit monitoring services are useful for cleaning up your credit file *after* you’re victimized by ID thieves, but they generally do nothing to stop thieves from applying for and opening new lines of credit in your name.

As I discussed at length in this primer, credit monitoring services aren’t really built to prevent ID theft. The most you can hope for from a credit monitoring service is that they give you a heads up when ID theft does happen, and then help you through the often labyrinthine process of getting the credit bureaus and/or creditors to remove the fraudulent activity and to fix your credit score. Continue reading →

Sep 15

OPM (Mis)Spends $133M on Credit Monitoring

The Office of Personnel Management (OPM) has awarded a $133 million contract to a private firm in an effort to provide credit monitoring services for three years to nearly 22 million people who had their Social Security numbers and other sensitive data stolen by cybercriminals. But perhaps the agency should be offering the option to pay for the cost that victims may incur in “freezing” their credit files, a much more effective way of preventing identity theft.

Not long after news broke that Chinese hackers had stolen SSNs and far more sensitive data on 4.2 million individuals — including background investigations, fingerprint data, addresses, medical and mental-health history, and financial history — OPM announced it had awarded a contract worth more than $20 million to Austin, Texas-based identity protection firm CSID to provide 18 months of protection for those affected.

Soon after the CSID contract was awarded, the OPM acknowledged that the breach actually impacted more than five times as many individuals as originally thought. In response, the OPM has awarded a $133 million contract to Portland, Ore. based ID Experts.

No matter how you slice it, $133 million is a staggering figure for a service that in all likelihood will do little to prevent identity thieves from hijacking the names, good credit and good faith of breach victims. While state-sponsored hackers thought to be responsible for this breach were likely interested in the data for more strategic than financial reasons (recruiting, discovering and/or thwarting spies), the OPM should not force breach victims to pay for true protection.

As I’ve noted in story after story, identity protection services like those offered by CSID, Experian and others do little to block identity theft: The most you can hope for from these services is that they will notify you after crooks have opened a new line of credit in your name. Where these services do excel is in helping with the time-consuming and expensive process of cleaning up your credit report with the major credit reporting agencies.

Many of these third party services also induce people to provide even more information than was leaked in the original breach. For example, CSID offers the ability to “monitor thousands of websites, chat rooms, forums and networks, and alerts you if your personal information is being bought or sold online.” But in order to use this service, users are encouraged to provide bank account and credit card data, passport and medical ID numbers, as well as telephone numbers and driver’s license information.

The only step that will reliably block identity thieves from accessing your credit file — and therefore applying for new loans, credit cards and otherwise ruining your good name — is freezing your credit file with the major credit bureaus. This freeze process — described in detail in the primer, How I Learned to Stop Worrying and Embrace the Security Freeze — can be done online or over the phone. Each bureau will give the consumer a unique personal identification number (PIN) that the consumer will need to provide in the event that he needs to apply for new credit in the future.

But there’s a catch: Depending on the state in which you reside, the freeze can cost $5 to $15 per credit bureau. Also, in some states consumers can be charged a fee to temporarily lift the freeze. Continue reading →