Planet Money Podcast Summary: "How Useful, Really, Are the Steps You Can Take After a Data Breach?"

Introduction

In the December 2, 2024 episode of Planet Money, NPR hosts Kenny Malone and Amanda Aronczyk delve into the crucial topic of data breaches and the actionable steps individuals can take to protect their personal information. This episode, originally part of Amanda’s broader exploration of data breaches, is presented as a bonus episode, making it accessible to all listeners. The conversation is both informative and relatable, providing practical advice backed by personal anecdotes and expert insights.

Understanding Data Breaches

Amanda Aronczyk introduces the episode by sharing her personal experiences and the anxiety associated with discovering a data breach. She explains how working on the data breach episode led her to uncover valuable strategies for safeguarding personal information. Kenny Malone echoes these sentiments, highlighting the frustration of having strong personal security measures in place only to see massive data breaches compromise that security.

Step 1: Order Your Free Credit Report ([07:12] - [08:00])

The first recommendation is to obtain a free credit report from one of the three major credit bureaus: Experian, TransUnion, or Equifax. Amanda emphasizes the importance of regularly reviewing these reports to monitor any suspicious activity.

Kenny Malone [07:12]: “Get your free credit report. Great.”

Amanda adds,

Amanda Aronczyk [07:26]: “This is a check-in. I mean this is something that people should just do regularly anyway. This is a helpful thing.”

By reviewing credit reports, individuals can detect unauthorized accounts or discrepancies that may indicate fraudulent activity resulting from a data breach.

Step 2: Enroll in Credit and Identity Monitoring Services ([09:02] - [11:35])

The second step involves signing up for credit and identity monitoring services, often offered for free by companies that have experienced a data breach. Amanda points out that while these services can provide alerts on suspicious activities, they come with caveats.

Amanda Aronczyk [09:02]: “Some states actually require that they offer you free credit monitoring if you've been involved in a data breach.”

However, Amanda cautions:

Amanda Aronczyk [09:52]: “I have gotten this offer so many times, I don't pay that close attention to it.”

Kenny raises a critical question about whether these services impact credit scores:

Kenny Malone [10:44]: “Do any of these affect my credit score?”

Amanda reassures him that these services do not affect credit scores but advises vigilance regarding the fine print, as some services may require users to waive their right to sue the credit bureau.

Step 3: Contact the US Federal Trade Commission ([11:51] - [12:54])

The third recommendation is to reach out to the US Federal Trade Commission (FTC). Although the FTC may not provide personalized assistance, Amanda highlights the value of their resources.

Amanda Aronczyk [12:25]: “They have guides for consumers and they also have guides for businesses like they have, you know, so you've been hacked. What should you do for your customers?”

Kenny humorously notes the possibility of receiving impersonal responses:

Kenny Malone [11:58]: “You could try. I mean, the way the FTC is handling this is if they get a lot of complaints about something, they will go and act on that.”

Overall, contacting the FTC is portrayed as a step towards understanding broader protective measures and contributing to systemic responses against data breaches.

Step 4: Place a Fraud Alert on Your Credit File ([12:54] - [14:36])

Amanda elaborates on the importance of placing a fraud alert with one of the major credit bureaus. This alert notifies lenders to take extra steps to verify identity before issuing credit.

Amanda Aronczyk [13:03]: “What this is going to do is if somebody like, let's say you go to Macy's and you decide you're going to go get one of those like Macy's cards or something like that and Macy's calls to see if Kenny is worth giving a Macy's card to. They're probably going to call you up, they're going to contact you and be like, did you actually want this?”

Kenny concurs,

Kenny Malone [13:32]: “Got it.”

Amanda mentions that initiating a fraud alert with one bureau will automatically notify the other two, simplifying the process for individuals.

Step 5: Request a Credit Freeze ([14:36] - [15:41])

The final major step discussed is requesting a credit freeze, which restricts access to your credit report and prevents new credit from being opened in your name without explicit permission.

Amanda Aronczyk [15:08]: “So most things still happen, but your credit is frozen, and so nobody can get a loan in your name.”

Kenny reflects on the importance of this measure,

Kenny Malone [15:29]: “It seems obvious to me that a security freeze is useful. It is. It is an armor plate against someone doing one of the worst things they can do when they steal your identity, which is tank your credit by taking out a giant line of credit in your name.”

Amanda reassures listeners that implementing a credit freeze is a straightforward process with the major bureaus.

Additional Protective Measures ([16:06] - [19:58])

Beyond the primary five steps, Amanda and Kenny discuss several supplemental strategies:

1. Use Privacy Services:

   • Amanda Aronczyk [16:06]: “We at NPR have a service called Deleteme, which is like a privacy service that helps scrape you off of the Internet.”

2. Monitor Financial Statements:

   • Regularly check credit card and bank statements for unauthorized transactions.
   • Kenny shares his personal experience with fraudulent TikTok purchases to illustrate the repercussions of data breaches.

3. Strengthen Password Security:

   • Change passwords regularly, especially for critical accounts like email, banking, and credit cards.
   • Use strong, unique passwords for each account. Amanda discusses the pros and cons of using password managers, highlighting concerns about centralized data security but acknowledging their benefits in managing complex passwords.

4. Implement Two-Factor or Multi-Factor Authentication (2FA/MFA):

   • Enable 2FA or MFA wherever possible to add an extra layer of security.
   • Amanda Aronczyk [18:01]: “Just make sure you do the big ones. You do your email, change that all the time. You do your bank, you do your credit card...”

Kenny offers a motivational perspective on the inconvenience of 2FA:

Kenny Malone [19:06]: “Think of it not as an annoying sort of extra hurdle. Think of it as a fun little scavenger hunt... It’s like an escape room of your own life.”

Systemic Reflections on Data Security

Throughout the conversation, Amanda and Kenny reflect on the broader implications of data security in the digital age. They express frustration over the burden placed on individuals to protect their data amidst widespread breaches and the commodification of personal information.

Amanda Aronczyk [20:02]: “The sad part for me in all of this though, is how much is put on you, Kenny. How much was put on me? I think this is some real bs.”

Kenny adds,

Kenny Malone [20:16]: “A lot for a password manager. Yes, that's right.”

They conclude that while personal vigilance is essential, there is a need for systemic changes to better protect consumer data without overburdening individuals.

Conclusion

Kenny and Amanda wrap up the episode by reinforcing the importance of the discussed steps and providing resources for listeners. They mention that links to all recommended services and further information will be available in the show notes, guiding listeners on where to find more detailed instructions and support.

Kenny Malone [21:01]: “We're gonna put links to the resources and websites that we talked about or that Amanda talked about. She's gonna do all that work... in the show notes.”

They also promote Amanda’s original episode on the illegal and legal markets for data, encouraging listeners to explore the topic further.

Notable Quotes

• Kenny Malone [19:06]: “Think of it not as an annoying sort of extra hurdle. Think of it as a fun little scavenger hunt... It’s like an escape room of your own life.”

• Amanda Aronczyk [15:08]: “So most things still happen, but your credit is frozen, and so nobody can get a loan in your name.”

• Kenny Malone [15:29]: “It seems obvious to me that a security freeze is useful. It is. It is an armor plate against someone doing one of the worst things they can do when they steal your identity, which is tank your credit by taking out a giant line of credit in your name.”

Resources Mentioned

Listeners are encouraged to visit the show notes for direct links to:

• Free credit report services from Experian, TransUnion, and Equifax.
• Credit and identity monitoring services.
• The US Federal Trade Commission’s consumer protection guides.
• Fraud alert and credit freeze procedures with the major credit bureaus.
• Deleteme privacy service.

Final Thoughts

This episode of Planet Money serves as an essential guide for individuals navigating the aftermath of a data breach. Through comprehensive discussions and practical advice, Kenny Malone and Amanda Aronczyk equip listeners with the knowledge to safeguard their personal information effectively. By breaking down each step and providing personal insights, the hosts make a complex and often stressful topic accessible and actionable.