Not all data breaches result in fraud or identity theft.  Here’s how you can protect yourself.

Companies that handle your personal information are required by law to protect your personal information.  Unfortunately, companies sometimes lose records containing your information or are deliberately hacked by criminals.

These data breaches present a risk to consumers, but the risk depends on a number of factors.  For example, was the breach accidental or intentional? If digital information was compromised, was it encrypted (converted to a format that can’t be read by other people)?   Did the breach compromise account numbers, or information that can be used to commit identity theft, such as social security numbers and dates of births?

Companies will often notify you in the event of a data breach, or offer you a service that will monitor your accounts and notify you in the event of unusual activity.

The best thing you can do in the event of a breach is to monitor your accounts online for unusual.  Don’t wait for a paper statement – it might be too late to stop the damage to your account.

If you notice suspicious activity in your accounts – an ATM withdrawal or credit card purchase you didn’t make – contact the financial institution and follow the steps.

For more information, read the FTC's consumer alert, What to do if your personal information is compromised.