Equifax Gets Hacked

Episode 1420 (02:02)


The news broke this week that credit reporting agency Equifax had been hacked, and that 143 Million credit files had been stolen. This is prompting a huge class action lawsuit. Leo says the three big credit agencies have a very high duty to keep customer information safe, and they failed. Leo says not to trust Equifax's explanation on this because some of the company's executives have sold stock for millions of dollars and that they didn't notify anyone of the security breach until five weeks after it happened. Additionally, Equifax's website is filled with security holes. Leo also says that since Equifax is pushing their credit monitoring service, they will no doubt profit from this.

Leo says to assume your information has been compromised and your options are to 1) put a fraud alert on all three credit reporting agencies, forcing them to contact you if a credit application is made in your name. They will hate that, but it's really your best line of defense. 2) Put a credit freeze on your accounts that will prevent ANY credit application from being approved without a PIN number. You will have to review these every 60-90 days and regularly monitor your credit report. Your bank probably has a credit monitoring service - Leo uses LifeLock, for example.

Here's some information on what to do now, as explained by the FTC.

Why the Equifax breach is very possibly the worst leak of personal info ever (Ars Technica)