Data Breach Compensation Free Credit Protection And Identity Services

In the wake of major data breaches affecting hundreds of millions of consumers, companies have offered various free services and compensation to affected individuals. These "data breach freebies" include credit monitoring services, identity protection programs, credit freezes, and cash settlements. This article examines the types of free protection services available to consumers following major data breaches, eligibility requirements, and how to access these benefits.

Major Data Breaches and Their Impact

Several significant data breaches have occurred in recent years, exposing sensitive personal information of millions of Americans. The Equifax data breach affected approximately 147 million people, exposing Social Security numbers, birth dates, and other personal information. The Marriott/Starwood brand property breach impacted 500 million customers as of September 10, 2018, while a TransUnion data breach affected more than 4 million people nationwide, including approximately 69,000 residents of Wisconsin alone. These breaches exposed personal information that could potentially be used for identity theft, making free protection services essential for affected consumers.

The TransUnion breach, which occurred on July 28, involved the unauthorized access of Social Security numbers and birth dates. The company is offering free credit monitoring to individuals whose information was compromised. Official notifications about the breach are being sent via postal mail, with the company warning consumers to be cautious of potential scams via email or text messages that may attempt to mimic official communications.

Free Credit Freezes

A significant development in consumer protection following data breaches is the availability of free credit freezes. The Economic Growth, Regulatory Relief and Consumer Protection Act, which took effect on September 21 (year not specified in sources but context suggests 2018), requires all three major credit reporting agencies—Equifax, Experian, and TransUnion—to offer credit freezes at no charge to consumers.

A credit freeze restricts access to an individual's credit file, preventing criminals from opening new credit accounts in the victim's name. This protection is particularly valuable in the wake of data breaches where Social Security numbers and other identifying information have been compromised.

The law also expanded free credit freeze eligibility to include: - Parents who can obtain free credit freezes for children under age 16 - Guardians, power of attorney holders, or conservators who can request free credit freezes for the adults they oversee with proper documentation

While beneficial for most consumers, credit freezes may not be appropriate in all situations. Individuals who anticipate applying for new credit—such as mortgages, auto loans, or student loans—may want to delay placing a freeze, as they would need to temporarily lift it to allow lenders to access their credit reports. Additionally, certain entities including insurers and employers are exempt from credit freezes and may still access credit reports even when a freeze is in place.

Free Credit Monitoring Services

Following major data breaches, affected companies often provide complimentary credit monitoring services to impacted consumers. These services monitor credit reports for suspicious activity and alert consumers to potential signs of identity theft.

In response to its data breach, Equifax launched a new "Lock & Alert" product that allows consumers to quickly lock and unlock their Equifax credit report online or via a mobile app. This service is available for free to all adult U.S. consumers with an Equifax credit report and remains free for the life of the account.

Similarly, TransUnion is offering free credit monitoring to individuals affected by its data breach. These services typically include monitoring of credit reports from one or more credit bureaus, notification of new accounts opened in the consumer's name, and alerts to significant changes in credit reports.

Identity Protection Services

In the aftermath of the Equifax data breach, the company offered free TrustedID Premier identity protection services to victims and any other U.S. consumer who wished to enroll. This service was available for one year and included features such as credit monitoring, identity theft insurance, and assistance with identity theft recovery.

The deadline for signing up for TrustedID Premier was January 31 (year not specified in sources but context suggests 2018), after which the service was no longer available to new customers. Equifax specifically designed TrustedID Premier in response to the breach and discontinued it altogether on January 31, 2019, one year after the enrollment deadline.

For consumers seeking identity protection services beyond what is offered through breach settlements, various paid options are available on the market. However, these typically require ongoing subscription fees rather than being provided free of charge.

Settlement Payouts

The Equifax data breach resulted in a settlement that allocated $425 million to address the harm caused to affected consumers. While the majority of these funds were designated for free credit monitoring services, $31 million was set aside for cash payouts to consumers.

The settlement structure creates a sliding scale for cash payments: - If all 147 million affected individuals filed for cash payments, each person would receive approximately $0.21 - If only one million people claimed cash payments, each would receive $31

Consumers directly affected by the breach may be eligible for additional compensation beyond the standard $125 maximum. This includes reimbursement for expenses incurred and time spent dealing with the breach-related issues. Eligibility for these enhanced payouts varies based on individual circumstances and documentation.

To determine eligibility and file a claim, consumers can visit the Equifax settlement website. Even individuals who are not interested in cash payments or credit monitoring are encouraged to complete the claims process to formally document their status as breach victims.

Additional Free Cybersecurity Tools

Beyond the specific services offered by breached companies, several free cybersecurity tools can help consumers protect themselves in the wake of data breaches:

Have I Been Pwned, created by cybersecurity expert Troy Hunt, allows users to enter their email addresses to check if their information has been exposed in any known data breaches. The service maintains a database of billions of usernames, passwords, email addresses, and other information that hackers have stolen and published online.

Other free cybersecurity resources include Defendify Cybersecurity Essentials, which provides basic protection tools, and Gophish, an open-source program that helps organizations test employee susceptibility to phishing attacks through simulated campaigns.

Steps to Take After a Data Breach

For consumers affected by data breaches, several immediate steps can help mitigate potential harm:

1. Check credit reports from all three major credit bureaus (Equifax, Experian, and TransUnion). Reputable sites for obtaining annual free credit reports include annualcreditreport.com and freecreditreport.com.

2. Monitor credit card statements carefully for unauthorized transactions. If fraudulent charges are discovered, contact the card issuer immediately.

3. Consider requesting new payment card numbers from financial institutions, especially if payment card information was compromised in the breach.

4. If unknown accounts appear on credit reports, visit identitytheft.gov for guidance on addressing potential identity theft.

5. Place a credit freeze with each of the three credit bureaus to prevent new accounts from being opened in your name.

6. Enroll in any free credit monitoring or identity protection services offered by the breached company.

7. File a claim for any settlement funds to which you may be entitled.

Conclusion

Data breaches have become increasingly common, exposing sensitive personal information of millions of consumers. In response, affected companies and federal regulations have made various free protection services available to help individuals safeguard their financial identities. These include credit freezes, credit monitoring, identity protection services, and sometimes cash settlements.

Consumers affected by data breaches should take advantage of these free services, as they provide valuable protection against identity theft and financial fraud. By understanding what options are available and taking appropriate action, individuals can significantly reduce their risk of harm following a data breach.

The most effective approach combines the free services offered by breached companies with ongoing personal vigilance, including regular monitoring of credit reports and financial statements. As personal information continues to be vulnerable to breaches, these protection measures remain essential tools for financial security.

Sources

1. Breach Assistance Guide
2. Equifax Free ID Protection Information
3. Credit Freeze Information
4. Free Cybersecurity Tools
5. Equifax Settlement Details
6. TransUnion Breach Information