Posts Tagged: Trans Union


24
Oct 17

Dell Lost Control of Key Customer Support Domain for a Month in 2017

A Web site set up by PC maker Dell Inc. to help customers recover from malicious software and other computer maladies may have been hijacked for a few weeks this summer by people who specialize in deploying said malware, KrebsOnSecurity has learned.

There is a program installed on virtually all Dell computers called “Dell Backup and Recovery Application.” It’s designed to help customers restore their data and computers to their pristine, factory default state should a problem occur with the device. That backup and recovery program periodically checks a rather catchy domain name — DellBackupandRecoveryCloudStorage.com — which until recently was central to PC maker Dell’s customer data backup, recovery and cloud storage solutions.

Sometime this summer, DellBackupandRecoveryCloudStorage.com was suddenly snatched away from a longtime Dell contractor for a month and exposed to some questionable content. More worryingly, there are signs the domain may have been pushing malware before Dell’s contractor regained control over it.

Image: Wikipedia

The purpose of DellBackupandRecoveryCloudStorage.com is inscribed in the hearts of countless PCs that Dell shipped customers over the past few years. The domain periodically gets checked by the “Dell Backup and Recovery application,” which “enables the user to backup and restore their data with just a few clicks.”

This program comes in two versions: Basic and Premium, explains “Jesse L,” a Dell customer liaison and a blogger on the company’s site.

“The Basic version comes pre-installed on all systems and allows the user to create the system recovery media and take a backup of the factory installed applications and drivers,”Jesse L writes. “It also helps the user to restore the computer to the factory image in case of an OS issue.”

Dell customer liaison Jesse L. talks about how the program in question is by default installed on all Dell PCs.

In other words: If DellBackupandRecoveryCloudStorage.com were to fall into the wrong hands it could be used to foist malicious software on Dell users seeking solace and refuge from just such nonsense!

It’s not yet clear how or why DellBackupandRecoveryCloudStorage.com got away from SoftThinks.com —  an Austin, Tex.-based software backup and imaging solutions provider that originally registered the domain back in mid-2013 and has controlled it for most of the time since. But someone at SoftThinks apparently forgot to renew the domain in mid-June 2017.

SoftThinks lists Dell among some of its “great partners” (see screenshot below). It hasn’t responded to requests for comment. Some of its other partners include Best Buy and Radio Shack.

Some of SoftThinks’ partners. Source: SoftThinks.com

From early June to early July 2017, DellBackupandRecoveryCloudStorage.com was the property of Dmitrii Vassilev of  TeamInternet.com,” a company listed in Germany that specializes in selling what appears to be typosquatting traffic. Team Internet also appears to be tied to a domain monetization business called ParkingCrew.

If you’re not sure what typosquatting is, think of what sometimes happens when you’re typing out a URL in the browser’s address field and you fat-finger a single character and suddenly get redirected to the kind of content that makes you look around quickly to see if anyone saw you looking at it. For more on Team Internet, see this enlightening Aug. 2017 post from Chris Baker at internet infrastructure firm Dyn.  Continue reading →


24
Sep 17

Equifax or Equiphish?

More than a week after it said most people would be eligible to enroll in a free year of its TrustedID identity theft monitoring service, big three consumer credit bureau Equifax has begun sending out email notifications to people who were able to take the company up on its offer. But in yet another security stumble, the company appears to be training recipients to fall for phishing scams.

Some people who signed up for the service after Equifax announced Sept. 7 that it had lost control over Social Security numbers, dates of birth and other sensitive data on 143 million Americans are still waiting for the promised notice from Equifax. But as I recently noted on Twitter, other folks have received emails from Equifax over the past few days, and the messages do not exactly come across as having emanated from a company that cares much about trying to regain the public’s trust.

Here’s a redacted example of an email Equifax sent out to one recipient recently:

equifaxcare

As we can see, the email purports to have been sent from trustedid.com, a domain that Equifax has owned for almost four years. However, Equifax apparently decided it was time for a new — and perhaps snazzier — name: trustedidpremier.com.

The above-pictured message says it was sent from one domain, and then asks the recipient to respond by clicking on a link to a completely different (but confusingly similar) domain.

My guess is the reason Equifax registered trustedidpremier.com was to help people concerned about the breach to see whether they were one of the 143 million people affected (for more on how that worked out for them, see Equifax Breach Response Turns Dumpster Fire). I’d further surmise that Equifax was expecting (and received) so much interest in the service as a result of the breach that all the traffic from the wannabe customers might swamp the trustedid.com site and ruin things for the people who were already signed up for the service before Equifax announced the breach on Sept. 7.

The problem with this dual-domain approach is that the domain trustedidpremier.com is only a few weeks old, so it had very little time to establish itself as a legitimate domain. As a result, in the first few hours after Equifax disclosed the breach the domain was actually flagged as a phishing site by multiple browsers because it was brand new and looked about as professionally designed as a phishing site.

What’s more, there is nothing tying the domain registration records for trustedidpremier.com to Equifax: The domain is registered to a WHOIS privacy service, which masks information about who really owns the domain (again, not exactly something you might expect from an identity monitoring site). Anyone looking for assurances that the site perhaps was hosted on Internet address space controlled by and assigned to Equifax would also be disappointed: The site is hosted at Amazon.

While there’s nothing wrong with that exactly, one might reasonably ask: Why didn’t Equifax just send the email from Equifax.com and host the ID theft monitoring service there as well? Wouldn’t that have considerably lessened any suspicion that this missive might be a phishing attempt?

Perhaps, but you see while TrustedID is technically owned by Equifax Inc., its services are separate from Equifax and its terms of service are different from those provided by Equifax (almost certainly to separate Equifax from any consumer liability associated with its monitoring service).

THE BACKSTORY

What’s super-interesting about trustedid.com is that it didn’t always belong to Equifax. According to the site’s Wikipedia page, TrustedID Inc. was purchased by Equifax in 2013, but it was founded in 2004 as an identity protection company which offered a service that let consumers automatically “freeze” their credit file at the major bureaus. A freeze prevents Equifax and the other major credit bureaus from selling an individual’s credit data without first getting consumer consent.

By 2006, some 17 states offered consumers the ability to freeze their credit files, and the credit bureaus were starting to see the freeze as an existential threat to their businesses (in which they make slightly more than a dollar each time a potential creditor — or ID thief — asks to peek at your credit file).

Other identity monitoring firms — such as LifeLock — were by then offering services that automated the placement of identity fraud controls — such as the “fraud alert,” a free service that consumers can request to block creditors from viewing their credit files.

[Author’s note: Fraud alerts only last for 90 days, although you can renew them as often as you like. More importantly, while lenders and service providers are supposed to seek and obtain your approval before granting credit in your name if you have a fraud alert on your file, they are not legally required to do this — and very often don’t.]

Anyway, the era of identity monitoring services automating things like fraud alerts and freezes on behalf of consumers effectively died after a landmark lawsuit filed by big-three bureau Experian (which has its own storied history of data breaches). In 2008, Experian sued LifeLock, arguing its practice of automating fraud alerts violated the Fair Credit Reporting Act.

In 2009, a court found in favor of Experian, and that decision effectively killed such services — mainly because none of the banks wanted to distribute them and sell them as a service anymore. Continue reading →


11
Sep 17

The Equifax Breach: What You Should Know

It remains unclear whether those responsible for stealing Social Security numbers and other data on as many as 143 million Americans from big-three credit bureau Equifax intend to sell this data to identity thieves. But if ever there was a reminder that you — the consumer — are ultimately responsible for protecting your financial future, this is it. Here’s what you need to know and what you should do in response to this unprecedented breach.

Some of the Q&As below were originally published in a 2015 story, How I Learned to Stop Worrying and Embrace the Security Freeze. It has been updated to include new information specific to the Equifax intrusion.

Q: What information was jeopardized in the breach?

A: Equifax was keen to point out that its investigation is ongoing. But for now, the data at risk includes Social Security numbers, birth dates, addresses on 143 million Americans. Equifax also said the breach involved some driver’s license numbers (although it didn’t say how many or which states might be impacted), credit card numbers for roughly 209,000 U.S. consumers, and “certain dispute documents with personal identifying information for approximately 182,000 U.S. consumers.”

Q: Was the breach limited to Americans?

A: No. Equifax said it believes the intruders got access to “limited personal information for certain UK and Canadian residents.” It has not disclosed what information for those residents was at risk or how many from Canada and the UK may be impacted.

Q: What is Equifax doing about this breach?

A: Equifax is offering one free year of their credit monitoring service. In addition, it has put up a Web site — www.equifaxsecurity2017.com — that tried to let people determine whether they were affected.

Q: That site tells me I was not affected by the breach. Am I safe?

A: As noted in this story from Friday, the site seems hopelessly broken, often returning differing results for the same data submitted at different times. In the absence of more reliable information from Equifax, it is safer to assume you ARE compromised.

Q: I read that the legal language in the terms of service that consumers must accept before enrolling in the free credit monitoring service from Equifax requires one to waive their rights to sue the company in connection with this breach. Is that true?

A: Not according to Equifax. The company issued a statement over the weekend saying that nothing in that agreement applies to this cybersecurity incident.

Q: So should I take advantage of the credit monitoring offer?

A: It can’t hurt, but I wouldn’t count on it protecting you from identity theft.

Q: Wait, what? I thought that was the whole point of a credit monitoring service?

A: The credit bureaus sure want you to believe that, but it’s not true in practice. These services do not prevent thieves from using your identity to open new lines of credit, and from damaging your good name for years to come in the process. The most you can hope for is that credit monitoring services will alert you soon after an ID thief does steal your identity.

Q: Well then what the heck are these services good for?

A: Credit monitoring services are principally useful in helping consumers recover from identity theft. Doing so often requires dozens of hours writing and mailing letters, and spending time on the phone contacting creditors and credit bureaus to straighten out the mess. In cases where identity theft leads to prosecution for crimes committed in your name by an ID thief, you may incur legal costs as well. Most of these services offer to reimburse you up to a certain amount for out-of-pocket expenses related to those efforts. But a better solution is to prevent thieves from stealing your identity in the first place.

Q: What’s the best way to do that?

A: File a security freeze — also known as a credit freeze — with the four major credit bureaus.

Q: What is a security freeze?

A: A security freeze essentially blocks any potential creditors from being able to view or “pull” your credit file, unless you affirmatively unfreeze or thaw your file beforehand. With a freeze in place on your credit file, ID thieves can apply for credit in your name all they want, but they will not succeed in getting new lines of credit in your name because few if any creditors will extend that credit without first being able to gauge how risky it is to loan to you (i.e., view your credit file). And because each credit inquiry caused by a creditor has the potential to lower your credit score, the freeze also helps protect your score, which is what most lenders use to decide whether to grant you credit when you truly do want it and apply for it.

Q: What’s involved in freezing my credit file?

A: Freezing your credit involves notifying each of the major credit bureaus that you wish to place a freeze on your credit file. This can usually be done online, but in a few cases you may need to contact one or more credit bureaus by phone or in writing. Once you complete the application process, each bureau will provide a unique personal identification number (PIN) that you can use to unfreeze or “thaw” your credit file in the event that you need to apply for new lines of credit sometime in the future. Depending on your state of residence and your circumstances, you may also have to pay a small fee to place a freeze at each bureau. There are four consumer credit bureaus, including EquifaxExperianInnovis and Trans Union.  It’s a good idea to keep your unfreeze PIN(s) in a folder in a safe place (perhaps along with your latest credit report), so that when and if you need to undo the freeze, the process is simple.

Q: How much is the fee, and how can I know whether I have to pay it?

A: The fee ranges from $0 to $15 per bureau, meaning that it can cost upwards of $60 to place a freeze at all four credit bureaus (recommended). However, in most states, consumers can freeze their credit file for free at each of the major credit bureaus if they also supply a copy of a police report and in some cases an affidavit stating that the filer believes he/she is or is likely to be the victim of identity theft. In many states, that police report can be filed and obtained online. The fee covers a freeze as long as the consumer keeps it in place. Consumers Union has a useful breakdown of state-by-state fees. Continue reading →


8
Sep 17

Equifax Breach Response Turns Dumpster Fire

I cannot recall a previous data breach in which the breached company’s public outreach and response has been so haphazard and ill-conceived as the one coming right now from big-three credit bureau Equifax, which rather clumsily announced Thursday that an intrusion jeopardized Social security numbers and other information on 143 million Americans.

WEB SITE WOES

As noted in yesterday’s breaking story on this breach, the Web site that Equifax advertised as the place where concerned Americans could go to find out whether they were impacted by this breach — equifaxsecurity2017.com
is completely broken at best, and little more than a stalling tactic or sham at worst.

In the early hours after the breach announcement, the site was being flagged by various browsers as a phishing threat. In some cases, people visiting the site were told they were not affected, only to find they received a different answer when they checked the site with the same information on their mobile phones.

phonelaptopequifax

Others (myself included) received not a yes or no answer to the question of whether we were impacted, but instead a message that credit monitoring services we were eligible for were not available and to check back later in the month. The site asked users to enter their last name and last six digits of their SSN, but at the prompting of a reader’s comment I confirmed that just entering gibberish names and numbers produced the same result as the one I saw when I entered my real information: Come back on Sept. 13.

Who’s responsible for this debacle? Well, Equifax of course. But most large companies that can afford to do so hire outside public relations or disaster response firms to walk them through the safest ways to notify affected consumers. In this case, Equifax appears to have hired global PR firm Edelman PR.

What gives me this idea? Until just a couple of hours ago, the copy of WordPress installed at equifaxsecurity2017.com included a publicly accessible user database entry showing a user named “Edelman” was the first (and only?) user registered on the site.

Code that was publicly available on equifaxsecurity2017.com until very recently showed account information for an outside PR firm.

I reached out to Edelman for more information and will update this story when I hear from them.

EARLY WARNING?

In its breach disclosure Thursday, Equifax said it hired an outside computer security forensic firm to investigate as soon as it discovered unauthorized access to its Web site. ZDNet published a story Thursday saying that the outside firm was Alexandria, Va.-based Mandiant — a security firm bought by FireEye in 2014.

Interestingly, anyone who happened to have been monitoring look-alike domains for Equifax.com prior to yesterday’s breach announcement may have had an early clue about the upcoming announcement. One interesting domain that was registered on Sept. 5, 2017 is “equihax.com,” which according to domain registration records was purchased by an Alexandria, Va. resident named Brandan Schondorfer.

A quick Google search shows that Schondorfer works for Mandiant. Ray Watson, a cybersecurity researcher who messaged me this morning on Twitter about this curiosity, said it is likely that Mandiant has been registering domains that might be attractive to phishers hoping to take advantage of public attention to the breach and spoof Equifax’s domain.

Watson said it’s equally likely the equihax.com domain was registered to keep it out of the hands of people who may be looking for domain names they can use to lampoon Equifax for its breach. Schondorfer has not yet returned calls seeking comment.

EQUIFAX EXECS PULL GOLDEN PARACHUTES?

Bloomberg moved a story yesterday indicating that three top executives at Equifax sold millions of dollars worth of stock during the time between when the company says it discovered the breach and when it notified the public and investors.

Shares of Equifax’s stock on the New York Stock Exchange [NSYE:EFX] were down more than 13 percent at time of publication versus yesterday’s price.

The executives reportedly told Bloomberg they didn’t know about the breach when they sold their shares. A law firm in New York has already announced it is investigating potential insider trading claims against Equifax. Continue reading →


14
Mar 16

From Stolen Wallet to ID Theft, Wrongful Arrest

It’s remarkable how quickly a stolen purse or wallet can morph into full-blown identity theft, and possibly even result in the victim’s wrongful arrest. All of the above was visited recently on a fellow infosec professional whose admitted lapse in physical security led to a mistaken early morning arrest in front of his kids.

The guy police say stole Miller's wallet and got him wrongfully arrested was himself apprehended earlier this month.

The guy police say stole Miller’s wallet and got him wrongfully arrested was himself apprehended earlier this month.

On the morning of Feb. 20, Lance Miller was arrested in front of his two children by local sheriffs in Golden, Colo. Miller, a managing partner at cybersecurity recruitment firm Curity, had discovered his wallet was missing three days prior to his arrest, reported it to the local police and canceled his credit cards. In the meantime someone had drained his checking account of approximately $5,000, and maxed out his credit cards for almost another $5,000.

“I was standing there in front of my kids saying, ‘You guys are crazy. Do I look like a burglar?'” Miller recalled. “The cop goes, ‘Well, I don’t know what a burglar looks like,’ and they put me in cuffs and in the car.”

Miller said it wasn’t until the 30-minute, handcuffed drive to police station that the local police and the local sheriff’s office began comparing notes, discovering in the process that they’d grabbed the wrong guy and removing the cuffs. Miller soon learned the thief who’d stolen his wallet had impersonated him during multiple traffic stops. A car the impostor was driving also was spotted speeding away from the scene of a burglary, but Miller said the police in that case didn’t give chase in that case because it wasn’t a violent crime. Continue reading →


28
Jan 16

FTC: Tax Fraud Behind 47% Spike in ID Theft

The U.S. Federal Trade Commission (FTC) today said it tracked a nearly 50 percent increase in identity theft complaints in 2015, and that by far the biggest contributor to that spike was tax refund fraud. The announcement coincided with the debut of a beefed up FTC Web site aimed at making it easier for consumers to report and recover from all forms of ID theft.

In kicking off “Tax Identity Theft Awareness Week,” FTC released new stats showing that the agency received more than 490,000 identity theft complaints last year, a 47 percent increase over 2014. In a conference call with the news media, FTC Chairwoman Edith Ramirez called tax refund fraud “the largest and fastest growing ID theft category” that the commission tracks.

Tax refund fraud contributed mightily to a big spike in ID theft complaints to the FTC in 2015. Image: FTC

Tax refund fraud contributed mightily to a big spike in ID theft complaints to the FTC in 2015. Image: FTC

Those numbers roughly coincide with data released by the Internal Revenue Service (IRS), which also shows a major increase in tax-related identity theft in 2015.

Incidence of tax-related ID theft as of Sept. 2015. Source: IRS.

Incidence of tax-related ID theft as of Sept. 2015. Source: IRS.

Ramirez was speaking to reporters to get the word out about the agency’s new and improved online resource, identitytheft.gov, which aims to streamline the process of reporting various forms of identity theft to the FTC, the IRS, the credit bureaus and to state and local officials.

“The upgraded site, which is mobile and tablet accessible, offers an array of easy-to-use tools, that enables identity theft victims to create the documents they need to alert police, the main credit bureaus and the IRS among others,” Ramirez said. “Identity theft victims can now go online and get a free, personalized identity theft recovery plan.”

Ramirez added that the agency’s site does not collect sensitive data — such as drivers license or Social Security numbers. The areas where that information is required are left blank in the forms that get produced when consumers finish stepping through the process of filing an ID theft complaint (consumers are instructed to “fill these items in by hand, after you print it out”).

The FTC chief also said the agency is working with the credit bureaus to further streamline the process of reporting fraud. She declined to be specific about what that might entail, but the new and improved identitytheft.gov site is still far from automated. For example, the “recovery plan” produced when consumers file a report merely lists the phone numbers and includes Web site links for the major credit bureaus that consumers can use to place fraud alerts or file a security freeze.

The "My Recovery Plan" produced when I filed a test report claiming the worst possible scenario of ID theft that I could think up. The FTC requests that consumers not file false reports (I had their PR person remove this entry after filing it).

The “My Recovery Plan” produced when I filed a test report claiming the worst possible scenario of ID theft that I could think up. The FTC kindly requests that consumers not file false reports (I had their PR person remove this entry after filing it).

Nevertheless, I was encouraged to see the FTC urging consumers to request a security freeze on their credit file, even if this was the last option listed on the recovery plan that I was issued and the agency’s site appears to do little to help consumers actually file security freezes.

I’m also glad to see the Commission’s site employ multi-factor authentication for consumers who wish to receive a recovery plan in addition to filing an ID theft report with the FTC. Those who request a plan are asked to provide an email address, pick a complex password, and input a one-time code that is sent via text message or automated phone call. Continue reading →


20
Jan 16

The Lowdown on Freezing Your Kid’s Credit

A story in a national news source earlier this month about freezing your child’s credit file to preempt ID thieves prompted many readers to erroneously conclude that all states allow this as of 2016. The truth is that some states let parents create a file for their child and then freeze it, while many states have no laws on the matter. Here’s a short primer on the current situation, with the availability of credit freezes (a.k.a “security freeze”) for minors by state and by credit bureau.

The lighter-colored states have some type of law permitting parents and/or guardians to place a freeze or flag on a dependent's credit file.

The lighter-colored states have laws permitting parents and/or guardians to place a freeze or flag on a dependent’s credit file.

A child’s Social Security number can be used by identity thieves to apply for government benefits, open bank and credit card accounts, apply for a loan or utility service, or rent a place to live. Why would ID thieves wish to assume a child’s identity? Because that child is (likely) a clean slate, which translates to plenty of available credit down the road. In addition, minors generally aren’t in the habit of checking their credit reports or even the existence of one, and most parents don’t find out about the crime until the child approaches the age of 18 (or well after).

A 2012 report on child identity theft from the Carnegie Mellon University CyLab delves into the problem of identity thieves targeting children for unused Social Security numbers. The study looked at identity theft protection scans done on some 40,000 children, and found that roughly 10 percent of them were victims of ID theft.

The Protect Children from Identity Theft Act, introduced in the House of Representatives in March 2015, would give parents and guardians the ability to create a protected, frozen credit file for their children. However, GovTrack currently gives the bill a two percent chance of passage in this Congress.

So for now, there is no federal law for minors regarding credit freezes. This has left it up to the states to establish their own policies.

Credit bureau Equifax offers a free service that will allow parents to create a credit report for a minor and freeze it regardless of the state requirement. The minor also does not have to be a victim of identity theft. Equifax has more information on this offering here.

Experian told me that company policy is not to create a file for a minor upon request unless mandated by state law. “However, if a file exists for the minor we will provide a copy free to the parent or legal guardian and will freeze it,” said Experian spokesperson Susan Henson.

Henson added that depending on state law, there may be a fee ranging from $3 to $10 associated with the minor’s freeze. However, if the minor is a victim of identity theft and the applicant submits a copy of a valid police or incident report or complaint with a law enforcement agency or the Department of Motor Vehicles (DMV), the fee will be waived.

Trans Union has a form on its site that lets parents and guardians check for the presence of a credit file on their dependents. But it also only allows freezes in states that reserve that right for minors and their parents or guardians, and applicable fees may apply.

Innovis, often referred to as the fourth major consumer credit bureau, allows parents or guardians to place a freeze on their dependent’s file regardless of state laws. Continue reading →


2
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 opm.myidcare.com, 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 →


2
Oct 15

Experian Breach Affects 15 Million Consumers

Kicking off National Cybersecurity Awareness Month with a bang, credit bureau and consumer data broker Experian North America disclosed Thursday that a breach of its computer systems exposed approximately 15 million Social Security numbers and other data on people who applied for financing from wireless provider T-Mobile USA Inc.

experianExperian said the compromise of an internal server exposed names, dates of birth, addresses, Social Security numbers and/or drivers’ license numbers, as well as additional information used in T-Mobile’s own credit assessment. The Costa Mesa, Calif.-based data broker stressed that no payment card or banking details were stolen, and that the intruders never touched its consumer credit database.

Based on the wording of Experian’s public statement, many publications have reported that the breach lasted for two years from Sept. 1, 2013 to Sept. 16, 2015. But according to Experian spokesperson Susan Henson, the forensic investigation is ongoing, and it remains unclear at this point the exact date that the intruders broke into Experian’s server.

Henson told KrebsOnSecurity that Experian detected the breach on Sept. 15, 2015, and confirmed the theft of a single file containing the T-Mobile data on Sept. 22, 2015.

T-Mobile CEO John Legere blasted Experian in a statement posted to T-Mobile’s site. “Obviously I am incredibly angry about this data breach and we will institute a thorough review of our relationship with Experian, but right now my top concern and first focus is assisting any and all consumers affected,” Legere wrote.

WHAT YOU CAN DO

Experian said it will be notifying affected consumers by snail mail, and that it will be offering affected consumers free credit monitoring through its “Protect MyID” service. Take them up on this offer if you want , but I would strongly encourage anyone affected by this breach to instead place a security freeze on their credit files at Experian and at the other big three credit bureaus, including Equifax, Trans Union and Innovis.

Experian’s offer to sign victims up for its credit monitoring service to address a breach of its own making is pretty rich. Moreover, 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 →


8
Jun 15

How I Learned to Stop Worrying and Embrace the Security Freeze

If you’ve been paying attention in recent years, you might have noticed that just about everyone is losing your personal data. Even if you haven’t noticed (or maybe you just haven’t actually received a breach notice), I’m here to tell you that if you’re an American, your basic personal data is already for sale. What follows is a primer on what you can do to avoid becoming a victim of identity theft as a result of all this data (s)pillage.

Click here for a primer on identity theft protection services.

Click here for a primer on identity theft protection services.

A seemingly never-ending stream of breaches at banks, healthcare providers, insurance companies and data brokers has created a robust market for thieves who sell identity data. Even without the help of mega breaches like the 80 million identities leaked in the Anthem compromise or last week’s news about 4 million records from the U.S. Office of Personnel Management gone missing, crooks already have access to the information needed to open new lines of credit or file phony tax refund requests in your name.

If your response to this breachapalooza is to do what each of the breached organizations suggest — to take them up on one or two years’ worth of free credit monitoring services — you might sleep better at night but you will probably not be any more protected against crooks stealing your identity. 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.

In short, if you have already been victimized by identity theft (fraud involving existing credit or debit cards is not identity theft), it might be worth paying for these credit monitoring and repair services (although more than likely, you are already eligible for free coverage thanks to a recent breach at any one of dozens of companies that have lost your information over the past year). Otherwise, I’d strongly advise you to consider freezing your credit file at the major credit bureaus. 

There is shockingly little public knowledge or education about the benefits of a security freeze, also known as a “credit freeze.” I routinely do public speaking engagements in front of bankers and other experts in the financial industry, and I’m amazed at how often I hear from people in this community who are puzzled to learn that there is even such a thing as a security freeze (to be fair, most of these people are in the business of opening new lines of credit, not blocking such activity).

Also, there is a great deal of misinformation and/or bad information about security freezes available online. As such, I thought it best to approach this subject in the form of a Q&A, which is the most direct method I know how to impart knowledge about a subject in way that is easy for readers to digest.

Q: What is a security freeze?

A: A security freeze essentially blocks any potential creditors from being able to view or “pull” your credit file, unless you affirmatively unfreeze or thaw your file beforehand. With a freeze in place on your credit file, ID thieves can apply for credit in your name all they want, but they will not succeed in getting new lines of credit in your name because few if any creditors will extend that credit without first being able to gauge how risky it is to loan to you (i.e., view your credit file). And because each credit inquiry caused by a creditor has the potential to lower your credit score, the freeze also helps protect your score, which is what most lenders use to decide whether to grant you credit when you truly do want it and apply for it. 

Q: What’s involved in freezing my credit file?

A: Freezing your credit involves notifying each of the major credit bureaus that you wish to place a freeze on your credit file. This can usually be done online, but in a few cases you may need to contact one or more credit bureaus by phone or in writing. Once you complete the application process, each bureau will provide a unique personal identification number (PIN) that you can use to unfreeze or “thaw” your credit file in the event that you need to apply for new lines of credit sometime in the future. Depending on your state of residence and your circumstances, you may also have to pay a small fee to place a freeze at each bureau. There are four consumer credit bureaus, including Equifax, Experian, Innovis and Trans Union

Q: How much is the fee, and how can I know whether I have to pay it?

A: The fee ranges from $0 to $15 per bureau, meaning that it can cost upwards of $60 to place a freeze at all four credit bureaus (recommended). However, in most states, consumers can freeze their credit file for free at each of the major credit bureaus if they also supply a copy of a police report and in some cases an affidavit stating that the filer believes he/she is or is likely to be the victim of identity theft. In many states, that police report can be filed and obtained online. The fee covers a freeze as long as the consumer keeps it in place. Equifax has a decent breakdown of the state laws and freeze fees/requirements. Continue reading →