2.9 billion records, including millions of Social Security numbers, leaked as background checker suffers massive data breach

National Public Data (NPD) obtains personal information from public and court records and other sources to provide online background checks and fraud prevention services. The company confirmed a few weeks ago that it had suffered a data breach involving 2.9 billion records spanning at least three decades. According to a Class action lawsuit The data hack filed by Schubert, Jonckheer & Kolber in early August included millions of Social Security numbers (SSN) and other personal information such as names, email addresses and phone numbers. The leak reportedly occurred in April, around the same time cybercriminal group USDoD put the stolen information up for sale on the dark web for $3.5 million.

Although NPD is working with investigators to enforce stricter security measures, leaked Social Security numbers can be grossly misused by threat actors to file fake tax returns, make investments, or apply for loans and credit cards in your name. The consequences can be unforeseen tax liabilities or outstanding debts on your credit profile. Additionally, poor credit affects your chances of getting loans, low-premium insurance, renting an apartment, and even getting a job. Cases of identity theft are increasing rapidly in the United States as cybercriminals use increasingly sophisticated methods, including synthetic identity theft tactics, to steal personal information for financial fraud. The Federal Trade Commission (FTC) announced this today half a million Cases of identity theft were reported in the first half of this year, with credit card fraud being the most common form.

How to check if your SSN information has been exposed

Cybersecurity company Pentester.com has developed one Tool to immediately verify whether your Social Security number, date of birth, or other personal information was affected by the data breach. Richard Glaser, co-founder of Pentester.com, believes the security incident poses a significant risk to American citizens. To prevent misuse of SSNs, he even urged people to freeze their credit reports with agencies like TransUnion or Equifax, especially because SSNs don't change. However, the Social Security Administration can be a problem In some cases, you will receive a new SSN if your current SSN is misused even though you have done everything to prevent this.

Meanwhile, the NPD recommends consumers monitor their financial accounts and credit reports for unauthorized activity. Credit reporting platforms like Credit Sesame allow you to check your credit score and set up fraud alerts for free. While placing a fraud alert on your credit report can help you report suspicious credit inquiries or account entries, Odysseas Papadimitriou, CEO of WalletHub, thinks a credit freeze is better. “A fraud alert is more of a warning to lenders that they can easily ignore. In practice it doesn’t do much,” says Papadimitriou said USA Today. “A freeze, on the other hand, prevents fraud by preventing identity thieves from opening accounts in your name.” He explained that these steps were necessary because the leaked data was likely with the hackers.

What to consider before freezing your credit profile

A credit freeze prevents identity theft attempts by preventing credit reporting agencies from sharing your credit report information with lenders or anyone requesting the information. This way you can prevent new credit accounts from being opened in your name. A credit freeze is free and will not affect your credit score. However, you must contact each reporting agency individually to issue or lift a freeze. Additionally, a credit freeze remains in place indefinitely, so every time you want to open a new credit account, you'll need to plan ahead and request a temporary freeze release.