Your Data's Been Stolen. Don't Panic
Losses from identity theft are down, but we're still $45 billion in the hole.

Beth Givens is director of the Privacy Rights Clearinghouse.
So-called breach letters -- news that your personal data has been compromised -- are a dime a dozen now. Should they go straight into the circular file?
Every adult should expect to get a letter if they haven't already. I've received three. Indications are that the situation is getting worse, but we don't know whether that's because there are more reports or because there are more breaches.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Don't ignore a breach letter if you receive one. Read it carefully. If the breach involves an existing account, I recommend that people simply monitor their monthly statements. It's more serious if your Social Security number has been compromised.
How so?
Your Social Security number is the key piece of data that identity thieves need to open new accounts in your name. That's more difficult to recover from, and it takes more time. We still tell people not to panic -- there's not a lot of evidence that connects the dots between data breaches and ID theft. There's little likelihood that you'll become a victim because of a security breach. Even so, you should take steps to protect yourself.
What steps?
Establish a fraud alert for 90 days. That's a statement on your credit report that says you may be a victim of fraud and should be contacted before any credit is issued. All you do is make a toll-free phone call to one credit bureau and it has to contact the others. The problem with fraud alerts, we've learned, is that merchants don't always pay attention.
What's the next step?
A security freeze is the ultimate identity-theft prevention. It essentially renders your credit report inaccessible, so a merchant won't open a new account.
Before you establish a freeze, ask yourself whether you'll be entering into any credit transactions in the near future, including refinancing a mortgage, buying a new car, opening a new credit card -- or even applying for a job. You'd have to unfreeze your credit report, then refreeze it, each time paying a fee to each of the three credit bureaus.
What can consumers do preventively?
Assume that your personal information is at risk and build protection strategies into your life, such as ordering your free credit reports every year.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Anne Kates Smith brings Wall Street to Main Street, with decades of experience covering investments and personal finance for real people trying to navigate fast-changing markets, preserve financial security or plan for the future. She oversees the magazine's investing coverage, authors Kiplinger’s biannual stock-market outlooks and writes the "Your Mind and Your Money" column, a take on behavioral finance and how investors can get out of their own way. Smith began her journalism career as a writer and columnist for USA Today. Prior to joining Kiplinger, she was a senior editor at U.S. News & World Report and a contributing columnist for TheStreet. Smith is a graduate of St. John's College in Annapolis, Md., the third-oldest college in America.
-
Stock Market Today: It's 'All Sectors Go' Ahead of Independence Day
The resilience trade continues to work, even for sectors and stocks with specific uncertainties.
-
Nissan Recalls Over 440,000 Vehicles for Risk of Engine Failure
Hundreds of thousands of cars are being recalled over safety concerns. Here's how to check if your vehicle is affected and what steps to take next.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online Bargains
Feature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
How to Guard Against Identity Theft in 2025
Scammers are getting better at impersonating legitimate businesses.
-
Roth IRA Contribution Limits for 2025
Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
Social Media Scams Cost Consumers $2.7B, Study Shows
Scams related to online shopping, investment schemes and romance top the FTC's social media list this year.
-
How Much Life Insurance Do You Need?
insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Is Amazon Prime Day? Everything We Know So Far, Plus Early Deals
Amazon Prime Here are the key Amazon Prime Day dates and details you need to know, plus some of our favorite early deals to shop ahead of the sale.