Nonprofit

Can you imagine losing $43 billion? It’s hard to imagine losing $43, let alone $43 billion, but that’s what AARP claims American adults lose to identity theft and fraud each year. That’s a staggering number. And it doesn’t matter whether this information is lost by an organization that failed to protect customer data or an individual who fell for a phishing scam—the results are the same. Lost time, lost reputation, and yes, often blame and shame.

Cybercriminals continue to grow increasingly sophisticated in using both technology and psychology to trick victims into disclosing sensitive personal or financial information that can lead to theft and fraud. If you’ve fallen victim, please don’t blame yourself. Instead, act now to recover from the situation.

An Ounce of Prevention

The old saying “an ounce of prevention is worth a pound of cure” is very apt when it comes to identity theft. Many organizations, including the IRS, have published information to help people whose identities were stolen as part of a tax fraud scam. But did you know that there are 20 types of identity theft? Credit and debit card theft, stealing mail to gain access to confidential information, and other types of theft are common ways in which criminals gain access to personal information.

Many credit card companies now have safeguards against such theft by locking cards and contacting the cardholder when card activity suddenly increases past the cardholder’s typical activities. Still, it’s not foolproof. Consumers should monitor their credit cards, bank accounts, and credit scores frequently and guard against phishing emails or phone calls designed to trick the unwary into revealing sensitive information through a sense of urgency or familiarity.

How Do You Know If Your Data Is Compromised?

When personal data is compromised, it can lead to serious consequences, including financial loss, identity theft, and ongoing security risks. Consumers may notice unauthorized transactions, unfamiliar login attempts, or receive password reset emails they didn’t request—all potential signs of a breach. Additionally, a surge in spam calls or phishing emails could indicate that personal information has been leaked to third parties. In some cases, unexplained changes to security settings, such as modifications to two-factor authentication, may suggest that an account has been accessed without permission.

To identify whether personal data has been exposed, individuals can closely monitor their financial accounts, review credit reports for unusual activity, and utilize online tools designed to detect breaches. Many organizations offer data breach notification services that alert users if their information appears in leaked databases. If suspicious activity is detected, immediate action is necessary—this includes updating passwords, enabling additional security measures, and reporting the incident to the relevant financial institutions or authorities.

Recovering from a personal data breach requires a proactive approach. Establishing strong security habits, such as using unique passwords for each account and enabling multi-factor authentication, can help mitigate future risks. Consumers should also remain vigilant against phishing attempts and fraudulent communications, as cybercriminals often exploit compromised data to launch further attacks.

Recovering from a Data Breach

Although there is a lot of information published online to help individuals recover from a data breach, it can feel overwhelming to sort through it all. One helpful tool provided by the Federal Trade Commission is an interactive website, Identity Theft, which can help you create a personalized recovery plan.

If you suspect your personal data has been compromised, acting quickly can help minimize potential damage. Here are the key steps to take:

1. Confirm the breach: Check for unusual activity in your accounts, such as unauthorized transactions, password reset emails you didn’t request, or unfamiliar logins. If a company notifies you of a breach, verify the details through their official website.
2. Secure your accounts: Change passwords for affected accounts. Don’t reuse passwords across multiple sites. Mult-factor authentication also adds another layer of protection.
3. Monitor financial activity: Review your bank and credit card statements for suspicious transactions. You can also place a fraud alert on your accounts or freeze your credit.
4. Watch for phishing attempts: Scammers often use leaked data to send convincing emails or texts asking for personal information. Don’t click links in emails. Instead, close the email and navigate to a new browser tab before logging in and checking to see if the email is legitimate.
5. Check for identity theft: If sensitive information, such as your Social Security number, has been exposed, monitor your credit reports and consider enrolling in an identity theft protection service.
6. Report the breach: Notify your bank, credit card issuer, or relevant authorities if you detect fraudulent activity. If the breach involves your workplace or a service provider, follow their recommended security steps.
7. Stay informed: Keep an eye on updates from the breached company and cybersecurity experts. They may provide additional guidance or offer free credit monitoring services.

Taking these steps can help protect your personal information and reduce the risk of further harm.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.