Picture this:

You check your mail and find that you’ve received a letter notifying you that your mortgage provider has experienced a data breach. You’ve trusted this company with your personal information, but now that trust feels shaken. These types of provider hacks are happening more frequently at banks, utility providers, and even your doctors office, and they’re putting a lot of your personal data on the line. Knowing how to respond quickly and effectively can make all the difference in protecting yourself from potential fallout. Here’s what you need to know to secure your data, manage risks, and stay ahead of potential threats.

How Do These Breaches Happen?

Provider hacks can seem sudden, but most result from a mix of systemic weaknesses, advanced hacking techniques, and even simple human error.

Even companies with the most advanced security can have weak points. Hackers exploit these system vulnerabilities using methods like phishing, malware, or ransomware attacks to gain entry to the weakened system. A single unpatched software vulnerability can be enough to give a hacker entry. Keeping systems up to date helps to prevent attackers at the door.

Even when your provider has done everything possible to prevent intruders into their systems, they probably work with multiple third-party vendors (think payment processors, IT support, or customer service platforms). If one vendor is compromised, hackers can use that access to find more valuable data with all of the vendors customers and partners.

Some providers are much more attractive to cybercriminals than others, based on the kind of information they store. Banks and healthcare providers, for example, hold financial and medical data that can be easily monetized, making them high-profile targets. Utility providers and employers may also hold sensitive data (like Social Security numbers), putting them in the crosshairs for attacks. Unfortunately, the nature of their business makes attackers seek them out more frequently.

Immediate Steps to Take When You’re Notified of a Breach

As soon as you hear about a breach, quick action is key. Here’s what to do right away:

• Verify the Breach Notification: First things first—make sure the notification is real. Scammers often take advantage of real breaches to send out fake alerts, hoping people will click on phishing links. Go directly to the provider’s official website or contact them through verified channels to confirm the breach before taking any action. Ensure that your verification is done through a different means than the initial notification was provided. If the business’ email has been compromised, you should verify via phone or vice versa.
• Update Passwords (Especially Shared Ones): Change your password immediately and make it unique. If the breach affects an account where you’ve reused a password, you will need to change your password anywhere else you’ve used that same password. Reused or weak passwords are easy for hackers to leverage across multiple accounts. Create a strong, unique password for the affected account and any other accounts where that password was reused. Don’t forget to update your records as well! You don’t want to lose access to your accounts later because you forgot to notate the new password. If this all sounds overwhelming, please consider using a password manager to keep everything strong, unique, and recorded securely.
• Enable Two-Factor Authentication (2FA): Adding an extra layer of security to your accounts can stop hackers in their tracks, even if they’ve got your password. If the compromised account doesn’t already use 2FA, set it up now. Better yet, if the provider offers passkeys, switch to those for the best security. If your provider does not offer 2FA, it would be a good time to push them for better security or to consider changing providers.
• Monitor Financial Accounts: Keep a close eye on your bank and credit card accounts for any unusual activity. Setting up transaction alerts through your bank’s app or website is a good way to catch fraudulent transactions early. Reviewing recent statements can also help you spot anything suspicious that might have slipped by. Fraudulent charges can only be reversed for a limited time depending on your bank.

Protecting Your Identity and Data Post-Breach

After a breach, your personal information could be at risk, so it’s essential to take steps to safeguard your identity and minimize future risks.

If financial information like your Social Security number or banking details were exposed, a credit freeze is a smart move. It stops new accounts from being opened in your name without your authorization, effectively blocking attempts at identity theft. You can also place a fraud alert on your credit reports to make lenders verify your identity before opening any new accounts.

This is a good time to make sure any physical documents containing personal details are safely stored. Things like your Social Security card, birth certificate, and passport should be kept in a secure place, like a locked drawer or a safe. Making sure that you know where your identifying documents are will make it easier when providers need to ensure your identity during the recovery period.

Many providers will offer identity monitoring services for free after a breach. These services can notify you if your data appears on suspicious sites or if someone tries to use your information. Some of these services will even attempt to negotiate information take downs when your data is discovered on the dark web. Even if you don’t usually use monitoring services, it’s worth considering if your provider offers it for free as part of their response to the breach.

Stay Alert for Future Red Flags

After a breach, hackers may try to exploit the stolen information to trick or impersonate you. Here’s what to watch out for:

• Phishing and Impersonation Scams: Once data is out there, cybercriminals often use it to send phishing emails or scam calls, trying to trick you into giving up more information or clicking on malicious links. Double-check sender information on emails, and don’t click on links unless you’re sure they’re legitimate. If you receive an unusual message from a familiar source, reach out to confirm it was really them before you engage.
• Account Lockouts and Login Attempts: Keep an eye out for unusual account activity, like multiple login attempts or notifications about account lockouts. These are often signs that someone is trying to access your account. If you see anything unusual, update your password immediately, enable 2FA if you haven’t already, and contact the provider for further assistance. Similarly if you receive 2FA login requests when you are not expecting them, that may be a sign that an attacker is actively trying to access your accounts.
• Unusual Communications or New Account Openings: Hackers often try to use breached data to open new accounts or make changes to existing ones. Stay vigilant for unexpected emails, like welcome messages from services you didn’t sign up for, or confirmation emails about changes you didn’t make. Contact the relevant company immediately if you receive suspicious emails about new accounts or major changes.

Strengthen Your Security: Stay Proactive Against Future Threats

When a provider is hacked, it’s a reminder of the importance of maintaining personal security. Taking proactive steps now can limit the impact of future breaches. Check out my resources page for tools and tips to build up your security, or browse my other posts to stay informed on the latest strategies. The stronger your defenses, the safer you’ll be online!