Equifax Hack: NY Officials Seek Credit Agency Info, Oversight

In response to the Equifax data breach that exposed the personal private data of eight million New Yorkers, officials are working on ways to make state residents' financial information safer online. They also urge residents to protect themselves, taking steps to check and guard their credit reports and also being wary of financial security scams from con artists.

Monday, Gov. Andrew Cuomo proposed a new regulation to make credit reporting agencies register with the Department of Financial Services. On Tuesday, Attorney General Eric T. Schneiderman announced that his office has sent formal inquiries regarding data security to Experian and TransUnion, the nation's two other major credit reporting agencies.

Equifax announced the massive breach involving 143 million consumers nationwide on Sept 7. Hackers had accessed names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers. Approximately 209,000 individuals had their credit card numbers stolen. (To get important stories like this, SIGN UP for Patch’s Daily Newsletter and Real Time News Alerts.)

The proposed annual reporting obligation would provide New York with the authority to deny and potentially revoke a consumer credit reporting agency's authorization to do business with the state's regulated financial institutions and consumers if the agency is found to be out of compliance with certain prohibited practices, including engaging in unfair, deceptive or predatory practices.

"A person's credit history affects virtually every part of their lives and we will not sit idle by while New Yorkers remain unprotected from cyberattacks due to lax security," Cuomo said in the announcement. "Oversight of credit reporting agencies will help ensure that personal information is less vulnerable to cyberattacks and other nefarious acts in this rapidly changing digital world. The Equifax breach was a wakeup call and with this action New York is raising the bar for consumer protections that we hope will be replicated across the nation."

Under the proposed regulation, all consumer credit reporting agencies that operate in New York would have to register annually with DFS beginning on or before Feb. 1, 2018 and by February 1 of each successive year for the calendar year thereafter. The registration form would include an agency's officers or directors who will be responsible for compliance with the financial services, banking, and insurance laws, and regulations.

Meanwhile, in letters sent to the CEOs of Experian and TransUnion, the Attorney General’s office asks them to detail the security measures that were in place before they learned of the Equifax breach; steps the companies have taken since learning of the breach to ensure that they haven’t already suffered similar intrusions and won’t experience breaches moving forward; and how they will further assist consumers in protecting their personal information.

Click here to read the full letters.

View the proposed regulation here.

Schneiderman opened an investigation immediately after learning of the Equifax breach.

“The Equifax breach has left millions of New Yorkers vulnerable to identity theft and major financial issues,” he said. “Credit reporting agencies have a fundamental responsibility to protect the personal information they’re entrusted with. As we continue our investigation into the Equifax breach, it’s vital to ensure that consumer data at the other major credit reporting agencies is safe.”

Take action to protect yourself following the Equifax hack:

• Check your credit reports from Equifax, Experian, and TransUnion by visiting annualcreditreport.com. Accounts or activity that you do not recognize could indicate identity theft. This is a free service.
• Consider placing a credit freeze on your files. A credit freeze makes it harder for someone to open a new account in your name. It will not prevent a thief from using any of your existing accounts.
• Monitor your existing credit card and bank accounts closely for unauthorized charges. Call the credit card company or bank immediately about any charges you do not recognize.
• Since Social Security numbers were affected, there is risk of tax fraud. Tax identity theft happens when someone uses your Social Security number to get a tax refund or a job. Consider filing your taxes early and pay close attention to correspondence from the IRS.
• Since hackers may have access to personal contact info, New Yorkers should remain vigilant against possible hacking and phishing attempts by cybercriminals.

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SEE ALSO:

• Protect Yourself From Equifax Hack: NY AG
• New Yorkers Beware of Hack Scams: AG
• Equifax Leadership Dumped Stock Before Announcing Data Breach
• Equifax Data Breech: 'Nuclear Option' In Play For Consumers

Photo credit: Mike Stewart/Associated Press via Atlanta Patch