The largest data breach in recent history stole sensitive information from over three billion people. An almost unfathomable number. But what do fraudsters do with all that information? How do they sort through billions of identities and when they find what they’re looking for, what do they do with it? Essentially what’s the end goal for fraudsters once they steal your data? And where does it go? We’ve got the answers.

Here’s What You Need to Know About Stolen Data

Let us preface that Members 1st and most other financial institutions have numerous security layers to prevent data breaches. Banking systems use up-to-date and complex technology to ward off would-be fraudsters, and we have systems in place to help you recover from data breaches.

Typically, data breaches are tied to activity on the dark web. The dark web is the section of the internet that search engines like Google don't show you. When a website is created, it goes through a process called indexing. Once a site is indexed, it's findable via search engines.

Websites on the dark web are non-indexed and unregulated, and they're made to foster anonymity and fraud.

Data thieves buy and sell your stolen data and plan other software attacks via these unindexed, dark websites. And due to their technical savvy, when one of these sites is shut down by authorities, another pops up in its place. 

What Do Fraudsters Do With Your Information?

Here are the most common ways your stolen data is used and what you can do to counteract them.

Fraudulent Bank Accounts

The most common thing fraudsters do once they steal an identity is open new bank accounts. This includes credit cards, loans, or siphoning money from your checking and savings. Ultimately, most forms of identity theft, including the methods listed below, end in fraudulent accounts. And unless you keep a close eye on your accounts and credit history, they can use your identity for months or until the first bill or credit application ends up at your doorstep. 

Limit the spread of fake bank accounts by reviewing your real accounts for suspicious charges. And review your credit report monthly for any unauthorized changes. Setting up transaction alerts can help you stay on top of changes to your accounts. 

Resold

Some fraudsters resell your information to other fraudsters on the dark web. They may sell it for currency, bitcoin, or even trade for other information. While you can't prevent your data from being sold once it's stolen, you can add additional security layers to your accounts to stop further use. This includes changing passwords, investing in fraud protection services, and contacting the credit bureaus to place a freeze on your credit. 

Learn more about credit freezes and how to recover your stolen identity by clicking here. 

Ransomware

Ransomware is software maliciously installed on your computer. Hackers will claim to remove the software once their demands are met. Ransomware stops systems from working correctly and is often used to steal additional data. The term ransomware is often used interchangeably with malware, although the two have subtle differences.

Ransomware hackers make their presence known to further their own goals. In comparison, malware is a broader term that applies to any malicious software, including viruses, illegal monitoring, etc.

Fake Identities

Fraudsters may use your personal information to create fake identities to commit other crimes digitally or in real life. To prevent this, report your stolen identity to your local police once it's confirmed you've been compromised. This helps law enforcement build a case against fraudsters in the event they're caught.

 Stealing The Identities of Others

Chances are you've had a friend on social media have their account hacked in the past. The first thing fraudsters do is post a status or send a private message with a link to click. That's because you're far more likely to click a link from a trusted friend/profile than a brand-new account. This is just one way fraudsters use someone else's info to steal more data. You can curb the spread of this by reporting spam and deleting the messages. Under no circumstances should you click a random link sent to you out of the blue. 

How to Limit Your Risk of a Data Breach 

Here are a few quick tips to limit the risk of your identity being stolen.

Choose Secure Websites

Be wary of which sites you give your card information to if you shop online. It's not just fraudulent sites that steal your info. Some sites need better security. If they're hacked, then fraudsters can steal their customer payment information. 

Also, take note of any typos in a website link. Thieves will often create fake websites that look like real websites. This is called spoofing. These sites will redirect your information to fraudsters. This is especially important for social media users as it's not uncommon to receive messages encouraging users to click a fraud link or risk their profile being banned.

If you're unsure if a link is real or fake, err on the side of caution and contact the company directly. At Members 1st, we'll never call or text you and request your password or personal information. Give us a call at (530) 222-6060 or call the number on the back of your debit or credit card.

Passwords

Choose secure passwords to prevent fraudsters from stealing your information. Don't choose easily guessable passwords like birthdays, pet names, nicknames, etc. 

Safeguard Sensitive Info

Sensitive information is anything with your full legal name, birthday, address, passwords, PIN, etc. Safeguard it by storing it securely or destroying it. For example, your social security card should be kept behind lock and key - as should checkbooks and anything with your account number.

Be sure not to write passwords down, as they could fall into the wrong hands. Digital information can be stored safely behind firewalls and other digital protection services. Consult an IT professional to find the right software for your needs.

Having your identity stolen and put on the dark web is a hassle. But it’s one you can overcome with a little patience. Alternatively, you can limit the risk of it happening to you by practicing due diligence. Don’t click suspicious links, avoid shady websites, and keep your personal information close.