2.9 billion records, including millions of Social Security numbers, leaked as background checker suffers massive data breach

National Public Data (NPD) collects personally identifiable data from public and court records and other repositories to provide online background checks and fraud prevention services. The company confirmed several weeks ago that it had suffered a data breach involving 2.9 billion records dating back at least three decades. According to a class action Filed by Schubert, Jonckheer & Kolber in early August, the data hack included millions of Social Security numbers (SSNs) and other personal information such as names, email addresses and phone numbers. The leak reportedly took place in April, around the same time the stolen information was put up for sale for $3.5 million by cybercriminal group USDoD on the dark web.

Although NPD has worked with investigators to implement stronger security measures, disclosed Social Security numbers can be grossly misused by malicious actors to file false tax returns, make investments or apply for loans and credit cards in your name. The consequences could be unexpected tax obligations or unpaid debts in your credit profile. Additionally, a bad credit score impacts your chances of getting loans, low-premium insurance policies, renting an apartment, and even getting a job. Identity theft cases are rapidly increasing in the United States as cybercriminals use increasingly sophisticated methods, including synthetic identity theft tactics, to steal personal information for financial fraud. The Federal Trade Commission (FTC) revealed that more half a million cases of identity theft were reported in the first half of this year, where credit card fraud was the most prevalent type.

How to check if your SSN data has been exposed

The cybersecurity company Pentester.com has developed a tool to instantly check if your SSN, date of birth or other personal information was involved in the data breach. Pentester.com co-founder Richard Glaser believes this security incident poses a significant risk to American citizens. To prevent misuse of SSNs, he even urged people to freeze their credit reports with agencies like TransUnion or Equifax, mainly because SSNs don’t change. However, the Social Security Administration can emit You will receive a new SSN in some cases if your current SSN is misused despite everything you have tried to prevent it.

During this time, NPD recommends that consumers monitor their financial accounts and credit reports for unauthorized activity. Credit reporting platforms like Sesame credit Let you check your credit score and set fraud alerts for free. While placing a fraud alert on your credit report can help you flag suspicious loan applications or account entries, WalletHub CEO Odysseas Papadimitriou thinks a credit freeze is better. “A fraud alert is more of a warning to lenders, which they can easily ignore. In practice, it does not serve much purpose,” says Papadimitriou. told USA Today. “A freeze, on the other hand, stops fraud by preventing identity thieves from opening accounts in your name.” He explained that these steps are necessary because the leaked data is likely in the hands of hackers.

Things to Keep in Mind Before Freezing a Credit Profile

A credit freeze will prevent identity theft attempts by preventing credit reporting agencies from sharing your credit report data with any lender or person requesting this information. This way you can prevent new credit accounts from being opened in your name. The credit freeze facility is free and does not impact your credit score, but you must contact each reporting agency individually to issue or lift a freeze. Additionally, a credit freeze will remain in place indefinitely, so you should plan ahead and request a temporary lifting of the freeze each time you want to open a new credit account.