Best practices to help prevent a data breach

Imagine your social security number, driver’s license number, birthdate and address are compromised. What’s at risk? A lot! How do you protect against these ever-increasing risks? Below are some steps you can take to help protect your identity, your credit, and your peace of mind.

1. Manual credit report monitoring: Check your credit reports on all three credit bureaus—Equifax, Experian, and TransUnion—by going to annualcreditreport.com. If you see accounts listed that you do not recognize, this could indicate identity theft. Notify the credit bureau if you think the account is fraudulent.
2. Automated credit report monitoring: This is an optional add-on. Note that monitoring services provide minimal protection because they merely alert you after a breach has potentially occurred. These firms do provide some protection against loss and remediation, but cyber insurance could be a more beneficial alternative.
3. Credit freeze¹: Freezing your credit makes it more difficult for someone to open new credit in your name. It will not prevent someone from using your existing credit accounts, however. Be aware that a freeze creates additional verification steps when you want to open a new credit account.
4. Fraud alert²: A fraud alert on your identity through the credit reporting agencies will provide an additional layer of protection. The negative is that it has to be renewed every 90 days so it is particularly useful when you learn of an initial identify theft to mitigate further issues. Most credit cards also offer fraud alert protection.
5. Data security investment:
   • A virtual private network (VPN) for network traffic (both home and travel) to encrypt data and provide anonymity of your web traffic
   • Private email servers, even if just for the accounts used for access to financial accounts
   • Digital vault storage for all family data (akin to an independent cloud)
   • Network security monitoring for home/business networks
   • Device kill switch, to disable lost/stolen/hijacked devices
   • Appropriate anti-virus and malware on all devices
   • Dummy phones/email with alternative phone numbers and email addresses forwarded to your device(s). This helps prevent anyone having direct access to your phone number.
6. Strict protocols for releasing data and transferring funds: Instruct family members, trustees, and other advisors to have strict guidelines about who may authorize the movement of your funds and release private information, and how they may do it.
7. Personal and business insurance: Cyber insurance can not only reimburse for losses but also assist with response to data breach, fiduciary loss, and identity restoration. Most reputable insurers will provide an assessment to help identify gaps in your protection. Some insurers who cater to private individuals provide specialized services, such as:
   • Identity theft reimbursement and counseling, as well as monitoring services in the wake of a loss
   • Data restoration, ransomware, and extortion coverage
   • Fraudulent account transfers reimbursement
   • Reputation management to contain potentially damaging press/digital shares

It also helps to keep in mind that business insurance packages could be enhanced to provide cyber coverage for risks like these:

• Breach response and asset restoration
• Third-party notifications
• Regulatory fines and penalties
• Legal defense
• Network interruption/loss of Income
• Reputation management

Identity theft may seem like a remote possibility, but it occurs regularly. Even if all of your money is stashed under your mattress, your credit isn’t. Taking steps to protect yourself against this very real threat can help minimize the risk.

¹ https://www.consumer.ftc.gov/articles/0497-credit-freeze-faqs
 ² https://www.consumer.ftc.gov/articles/0275-place-fraud-alert

SEI Private Wealth Management is an umbrella name for various wealth advisory services offered through SEI Investments Management Corporation (“SIMC”). This presentation is provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice. This information is for educational purposes only and should not be interpreted as legal opinion or advice.