How Do I Avoid Data Breaches?

Summary

The Ramsey Show Highlights: How Do I Avoid Data Breaches?

Release Date: January 4, 2025

Host: Ramsey Network
Guests: Daryl (Identity Protection Expert), John (Privacy Specialist), Steve (Caller)

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Introduction

In this episode of The Ramsey Show Highlights, the focus is on identity theft and data breaches. Steve, a caller, expresses his anxiety over receiving multiple data breach notifications, primarily from hospital vendors and ambulance services. Feeling overwhelmed by the complexity of the high-tech world, Steve seeks advice on how to protect his personal information and reduce his vulnerability to such breaches.

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Caller’s Concern: Overwhelmed by Data Breaches

Steve's Dilemma: Steve shares his frustration about being inundated with data breach letters. Since 2017, he has received five such notifications, all originating from various hospitals and their associated vendors, including an ambulance service.

• Steve (00:12): “I'm being bombarded with data breach letters, and it's all from the hospital or their vendors or ambulance service.”

Steve is not technologically savvy and feels distressed by the constant threat of his personal information being compromised. He wonders if there's a straightforward way to remove himself from the system to prevent future breaches.

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Understanding Data Breaches

Daryl’s Explanation: Daryl clarifies that being "bombarded" might be an overstatement, indicating that Steve has received about three letters. However, he emphasizes the seriousness of data breaches, explaining that even if only a small number of records are accessed, the sheer volume of data makes it likely that individual information will be compromised.

• Daryl (01:30): “Sometimes those letters just say, hey, a big block of things got exposed. It doesn't even mean anybody took anything.”

He reassures Steve that being notified doesn't necessarily indicate that his data was actively exploited but highlights the importance of taking proactive measures to safeguard personal information.

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Strategies to Protect Against Data Breaches

1. Utilizing DeleteMe for Online Privacy:

Daryl recommends the DeleteMe service as a first line of defense. DeleteMe specializes in removing personal information from various online databases, reducing the chances of data being harvested by malicious actors.

• Daryl (02:08): “Get 'DeleteMe'... They'll pull all of your anything on the Dark Web where they're selling your... they pull it all off the Internet and they send you a report every month.”

DeleteMe offers monthly reports and ensures that personal data is systematically removed from the internet, providing peace of mind for users like Steve.

2. Implementing Identity Theft Protection with Xander:

In addition to DeleteMe, Daryl advises subscribing to Xander for comprehensive identity theft protection. Xander monitors personal information, detects potential threats, and offers assistance in recovering from identity theft incidents.

• Daryl (02:38): “Get identity theft protection from our friends at Xander. It's really inexpensive.”

Both services are affordable, costing approximately $20 a month combined, and offer robust protection mechanisms to deter and address identity theft effectively.

John’s Assurance:

John underscores the importance of these services by sharing personal experiences of reduced spam and secure monitoring post-subscription.

• John (03:36): “I've got much fewer text messages and phone calls and spam since signing up for this.”

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Discussion on Alternative Financial Safeguards

Steve’s Suggestion: Burying Money in Gold:

In an attempt to protect his finances, Steve considers converting his money into gold and burying it.

• Steve (04:13): “I was thinking about getting... turning my money into gold and burying it.”

However, Daryl and John quickly discourage this approach.

Daryl's Warning:

• Daryl (04:15): “No, no, don't do that.”
• Daryl (06:22): “A great friend of mine who is a bank executive said the best we can do is the next right thing and we can plan.”

He explains that such extreme measures are impractical and ineffective. In the event of a severe financial collapse, physical assets like buried gold could be worthless or even lead to conflicts with neighbors.

John on Financial Safety:

John advises maintaining money within FDIC-insured banks to ensure safety up to $250,000 per account. He strongly recommends against unconventional storage methods like hiding money under a mattress or burying it.

• John (04:28): “I would not put this money under a mattress or in gold.”

Daryl adds that utilizing high-yield savings accounts with rollover protection can provide additional security, often covering millions in FDIC protection.

• Daryl (04:38): “You can also get some of these high yield savings accounts that have rollover protection that they run to multiple banks.”

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Tax Implications of Alternative Investments

Steve’s Inquiry:

Steve probes further into the tax ramifications of converting gold back into currency.

• Steve (05:00): “How does the tax man get his cut when you turn gold back into currency?”

Daryl’s Response:

Daryl admits uncertainty but suggests that such transactions would likely involve capital gains tax.

• Daryl (05:30): “My guess would be at some point you'll have to report a commodity sale as income.”

John’s Clarification:

John confirms that selling gold might require reporting, referencing IRS Forms 8949 and Schedule D for capital gains tax.

• John (07:34): “Steve, I googled it... you will likely have capital gains tax if you make money off of it.”

He encourages Steve to conduct further research to understand the tax responsibilities fully.

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Philosophical Take on Financial Security

Daryl’s Perspective:

Daryl shares a broader view on financial security, emphasizing the unpredictability of economic systems and the importance of community resilience over individual hedging strategies.

• Daryl (06:22): “The greatest hedge you have against an end of time apocalypse is to be really closely connected to your friends and neighbors so that everybody can work together.”

He criticizes reliance on "end of time hedges" advertised in commercials, suggesting that communal support is more effective in ensuring survival during crises.

John’s Agreement:

John concurs, highlighting personal responsibility in safeguarding one’s finances while recognizing the limitations of governmental protections.

• John (07:31): “But the next best thing is we're responsible.”

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Final Recommendations and Closing Thoughts

Recommendations:

1. Subscribe to DeleteMe: For comprehensive removal of personal data from online sources.
2. Enroll in Xander’s Identity Theft Protection: To monitor and recover from potential identity theft incidents.
3. Maintain Funds in FDIC-Insured Banks: Ensuring financial safety up to $250,000 per account.
4. Consider High-Yield Savings Accounts with Rollover Protection: For enhanced financial security.

Notable Quotes:

• Daryl (02:38): “DeleteMe... They'll pull all of your anything on the Dark Web where they're selling your... they pull it all off the Internet and they send you a report every month.”
• John (07:34): “Create your free every dollar budget today. The simplest way to budget for your life.”

Conclusion:

The episode emphasizes proactive measures to protect personal information and financial assets in the digital age. By utilizing specialized services like DeleteMe and Xander, individuals can significantly reduce their vulnerability to data breaches and identity theft. Additionally, maintaining financial assets within established banking systems offers security against economic uncertainties. The guests collectively advocate for responsible personal management of data and finances, underscoring the importance of informed, practical strategies over extreme or unverified solutions.

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Resources Mentioned:

• DeleteMe: joindelete.me/Ramsey for a 20% discount.
• Xander Identity Theft Protection: Affordable plans for comprehensive protection.

Note: Always consult with a financial advisor or tax professional when making significant changes to your financial strategies or when dealing with complex tax matters.

Transcript

[Steve]

Brought to you by the EveryDollar app. Start budgeting for free today. Thanks for taking my call. I'm talking about identity theft.

[John]

Let's talk about it.

[Steve]

I'm being bombarded with data breach letters, and it's all from the hospital or their vendors or ambulance service. And it's really. And for somebody like myself, who doesn't really know that much about. About the high tech world, it's. It's bothering me. It's messing with my head. Yeah. And just want to know if there's an easy way to get to, you know, take yourself out of the system some kind of way.

[Daryl]

When you say bombarded. Sometimes when I get nervous or frustrated or I'm in a world I don't understand, I'll say bombarded or I'm getting blown up. But actually it's like two or three. So how many letters. I mean, how many. How many times have you been the victim of a data breach?

[Steve]

Five times. Since 2017.

[Daryl]

Five times. Okay. And it's. It's like a hospital or an ER or something like that.

[Steve]

Yes, it's hospital. The vendors for the hospital, you know, and. And more than one hospital. And then. And then this ambulance service. That's the latest and the only reason they. They took me on in 2017. That's a long time ago. I thought, you know, I mean, so.

[John]

Are these emails, texts, phone calls? How are they contacting you? Letters, letters, letters in the mail.

[Steve]

All right.

[Daryl]

Yeah. And sometimes those letters just say, hey, a big block of things got exposed. It doesn't even mean anybody took anything. It means somebody hacked into a thing and they may have gotten 10 names, but there was 10 million names in there, and yours was one of the 10 million. So it can be pretty confusing. I've got a couple of routes for you. Here's the thing. Getting quote unquote out of the system at this point, and you're talking to a guy that spent my whole life trying to avoid being on the Internet.

[John]

John is a privacy nerd.

[Daryl]

I am. It's. It's a game for me.

[John]

Like, I don't even know that his real name is John, to be honest.

[Daryl]

It's. It's for sure not. It's Daryl. Right. Is.

[Steve]

But.

[Daryl]

So I don't. I. I have tried to opt out. I have. I've recently relented. There's not a way out. And so I think the things to do is to protect yourself less vulnerable. There you go. So two things that I do and that. And George does, too, is one, I work with A company called Delete Me. And you can go to Delete me or joinedeleteme.com J-O-I-N deleteme.com Ramsey, we'll take you right there. Yeah. Or slash Deloney, because then I get credit for it. But.

[John]

Oh, wow.

[Daryl]

Ramsey.

[John]

Wow.

[Daryl]

But here's the deal. They go through and pull all of your anything on the Dark Web where they're selling your like spammers and scammers and people trying to steal your data. They pull it all off the Internet and they send you a report every month. It's pretty amazing what they do. The second thing is to get identity theft protection from our friends at Xander. I've got it. George has it. And it's really inexpensive. In the rare case that you get your identity stolen and even money stolen, money's taken out of your account. It's very rare. If it happens. It happened to George once.

[John]

Yep.

[Daryl]

Never happened to me. If. If it does happen, they've stolen, fund recovery. They go chase it down for you. So. So if a world like I'm like you, man. I don't know how any of this stuff works. I don't get it. If you told me to log into the Dark Web, I don't even know what that is. I don't even know what that is. I don't even know how Twitter works. Right. But I trust these folks that if something does happen, they're going to chase it down and help me out. So those are the two ways I protect me and my family right now.

[Steve]

And what the story. What's the name of that place again?

[John]

We'll make sure to get you the links. Hang on the line. But it's. If you go to join delete me.com Ramsey, you'll get 20% off their plans. And they're real affordable. We're talking like nine bucks a month, Steve. And then same with Xander. ID theft, Very affordable. About the same price. And they do two different things, but they're both wise to have. And it'll give you peace of mind for that 20 bucks a month you're spending for all this, you're going to sleep better at night. And I'll tell you anecdotally, Steve, I've got a lot. I've much fewer text messages and phone calls and spam since signing up for this.

[Steve]

All right, well, I was thinking about getting. Turning my money into gold and burying it.

[Daryl]

No, no, don't do that.

[John]

The banks are not the issue, Steve. So keep your money in a bank. It's Much safer there if it's FDIC insured which most banks are using are going to be same with your savings accounts. I would not put this money under a mattress or in gold.

[Daryl]

Don't bury in the yard.

[Steve]

Although up to, up to $250,000, it's, it's safe.

[Daryl]

Well, sure.

[John]

That's one, that's one account.

[Daryl]

Yes. You can also get some of these high yield savings accounts that have rollover protection that they run to multiple banks and it can be millions and millions. And my high yield savings account has millions of dollars in FDIC protection on it.

[Steve]

So. Okay, so I guess, but if I. Let's just assume that I had some gold buried up here and, and I took a 1 ounce deal out and once out 1 ounce of gold and took it and got turning to money. How does the tax man get his.

[John]

Cut when you buy gold or when.

[Daryl]

You convert it to money?

[Steve]

When I'm turning gold back into currency. I got a point in that transaction there. When do I, did I get it initially or what?

[John]

I don't know the tax ramifications of selling gold and turning it into dollars.

[Daryl]

Yeah. From your yard. I don't know, man.

[Steve]

Yeah.

[Daryl]

My guess would be at some point you'll have to report a commodity sale as income.

[John]

You just, you're just, it's like me going to London and, and getting some pounds out of my dollars. You're just converting it. So I don't know. That's one to Google, Steve, if you can do that. But as far as your safety goes, gold is not going to keep you any safer than having your, your money in the bank.

[Daryl]

Yeah. My guess is on money. If you got money and then you bought gold with it and buried it in your yard and then you took that gold out and, and converted it to cash, you would have probably already been taxed on that money when you got it the first time.

[Steve]

Well, I tell you what, I think Germany before World War II, when they printed printing presses, they're printing money all over the place. Just because he was they guaranteed so much of it, doesn't mean it's worth anything.

[Daryl]

That's right. That's right. But I'll tell you this. A great friend of mine who is a, is a bank executive said the best we can do is the next right thing and we can plan. But if we spend our time trying to avoid meteorites, like I don't have a meteorite plan. If suddenly the United States is not able to ensure its federal deposits and the banking system collapses, the gold that I've buried in my backyard will be worthless because my neighbor's going to come over and try to fight me for my water. And so what happens a lot is these, these, these stupid commercials come on these news channels trying to sell you end of time hedges. And end of time hedges don't work. The greatest hedge you have against an end of time apocalypse is to be really closely connected to your friends and neighbors so that everybody can work together not to have.

[Steve]

I really wish that the government was more responsible and they didn't put us, they didn't put us in this situation where we have to be so concerned about it. I know.

[John]

But the next best thing is we're responsible. Yes.

[Daryl]

If they can't and it just isn't the case. They spend money like it's going out of style. So.

[John]

And Steve, I googled it. Check this out. There are reporting requirements for gold sales and you will likely have capital gains tax if you make money off of it. You want to get real nerdy. Form 8949 and Schedule D. There you go. There's your nerdery for the day. Create your free every dollar budget today. The simplest way to budget for your life.