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)
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.
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.
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.
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.”
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.”
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.
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.”
Final Recommendations and Closing Thoughts
Recommendations:
- Subscribe to DeleteMe: For comprehensive removal of personal data from online sources.
- Enroll in Xander’s Identity Theft Protection: To monitor and recover from potential identity theft incidents.
- Maintain Funds in FDIC-Insured Banks: Ensuring financial safety up to $250,000 per account.
- 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.
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.