It's sad, but true! Data breaches, identity theft, and hacking have become a part of our lives. As we rely on the convenience of technology, we also have to take the responsibility of protecting our personal information.
Ruth to the Rescue has heard from plenty of consumers who worry about identity theft and those who know they have to deal with this frustrating pitfall of modern life.
Recommended Videos
"I don't tend t worry about it too much. I know it can happen and you have to be careful," said Jordan Malokofsky of Farmington Hills.
President Obama is now proposing legislation to make that battle a little easier for all of you. The president has proposed strengthening laws against identity theft by requiring notification when consumer information is hacked and protecting students' private data.
"This is a direct threat to the economic security of American families and we've got to stop it," Obama said in a speech at the Federal Trade Commission. "If we're going to be connected, we need to be protected."
Notification in 30 Days!
The president's plan would require all businesses to notify consumers within 30 days if their information has been hacked. Right now, each state has it's own policy. That requirement is part of the Personal Data Notification and Protection Act.
Consumers in downtown Detroit like the 30 day rule.
"It gets you prepared and you know makes you check into your finances because some people don't check every day," said Tracie Fugate of Detroit as she walked through a chilly Campus Martius.
While Jordan Malokofsky of Farmington Hills says he thinks retailers may have been a little slow in the past. "The faster you know the information, the more you can respond to it and the less damaging it is."
"Businesses actually like this. They don't like to have to comply with 48 different laws," said attorney Michael Khoury who works with Jaffe Raitt Heuer & Weiss in Southfield.
Khoury says other proposals have been talked about, but have never materialized. He says this is the first notification policy with some actual teeth.
What About Free Credit Reports?
President Obama also called for more free access to consumer credit reports. While customers can get annual credit reports free once a year, FICO scores typically cost money to obtain, although some banks have been offering them free to customers. Obama praised banks JP Morgan Chase and Bank of America for offering that information. However, Khoury wonders if seeing your overall score is good enough.
"The concept is that if you see your credit score go down, something must have happened. That's a little bit too late, " said Khoury, of Jaffe Raitt Heuer & Weiss in Southfield.
In fact, if your credit score has taken a dive, you may already be in some trouble if someone has been applying for credit in your name. Currently, you can and should be reviewing your credit report once a year (for free).
The CEO of CreditHub.com was even tougher on the president. Odysseas Papadimitriou released a statement saying in part, "It makes far more sense for the White House to propose legislation that would require free ongoing access for all consumers to their three major credit reports. This would facilitate the absolute best type of credit monitoring possible as well as correct the obvious injustice that exists in terms of the relationship between consumers and credit bureaus."
He went on to say," Not only are consumers tasked with monitoring their own credit data for signs of fraud or the inaccuracies for which bureaus are known, but they have to pay for the privilege. There is no service that offers free ongoing access to all three credit bureaus. The President had a chance to change that, but he blew it."
If you are hacked, the president also wants to crackdown on the people trying to make money off your identity.
"In addition, we're proposing to close loopholes in the law so we can go after criminals who steal and sell the identities of Americans, even when they do it overseas," he said as he outlined his policy.
The Student Digital Privacy Act would prohibit companies from selling student data to third parties, a move spurred by the increased use of technology in schools that can scoop up personal information.
"Data collected on students in the classroom should only be used for educational purposes to teach our children, not to market to our children," Obama said.
Protecting Yourself, Protection Your Information
There's little doubt we will see more data breaches in the future. Working with the Better Business Bureau, Ruth to the Rescue has come up with these
guidelines to help you protect your credit or debit cards before, or after, you suspect they've been involved in a breach.
1) Stay calm. Consumers are not liable for fraudulent charges on stolen account numbers.
2) Check with the website of the retailer for the latest information. Type the store name directly into your browser. Do NOT click on a link from an email or social media message.
3) On that note- beware of emails that may come into your inbox, claiming to help you deal with the crisis. Those emails could be fake, hoping you'll click on a dangerous link or share personal information.
4) If your card was compromised, you will likely hear from the bank or card-issuer first. If you have questions, call the customer service number on your card.
5) Consider putting fraud alerts on all your accounts. Check with each bank or financial institution on how to do so. You can usually set a dollar amount that will spark a fraud warning, if the company sees suspicious activity.
6) Monitor all your financial accounts carefully. If you have computer access, try checking your account weekly. Do not wait for the monthly statement.
7) If you see a fraudulent charge, report it to your bank or credit card issuer immediately so the charge can be reversed and a new card issued.
8) Keep receipts so you can prove which charges are legitimate.
9) Be careful about how often you use your debit card. If you debit card is hacked, thieves will be stealing your money, and debit cards do not have the same protections as credit cards. Make sure you know what kind of protection your account will offer.
10) Consider having a "dirty" credit card. This card would be used for all public transaction and online purchases. Ideally, you can pay it off each month, and if it's hacked you'll have better protection. Use your debit card for getting cash, and use other credit cards for major purchases.
11) Change your passwords on financial accounts frequently. Also, make sure you create "strong" passwords that will not be easily guessed.
12) When you hear about a date breach, share that information with family and friends, so they can also follow these steps to protect themselves.