Privacy Hacks Could Hurt Credit + What You Won Is it possible to hide?

Privacy seems to be becoming a rare commodity. How often do you hear of security breaches that leak your personal information to a bad actor? It seems like it happens almost every day.

LastPass, the password security application (ironically enough), Chickfil-A and Twitter all had security breaches in recent weeks.

Even if you win a multi-billion dollar lottery, anonymity is not allowed in some states. Privacy is not something you can buy.

Big money = little privacy

Let’s assume you won a million-dollar lotto. Everyone needs to know. You’ll want your family and friends to hear the good news. Telling the world is a different thing. Yikes.

Most states don’t allow you to claim the jackpot anonymously.

Rules vary depending on the laws that are in force in each state. Although the landscape changes frequently, there are only a few states that allow you to keep your identity anonymous. Arizona, Georgia and Kansas, New Jersey, North Dakota. Ohio. South Carolina. Texas. Virginia, Georgia are some of the states that allow you to keep the big story to yourself.

Every other state has similar requirements for large winners. California law requires the release of the winner’s full name as well as where they purchased their ticket. This may explain why the $2 billion Powerball ticket winner in November is still not coming forward.

Some states allow you to establish a trust in order to accept the payout. This can give you some privacy.

If you win the lottery, make sure you check your state laws. You might have to disguise yourself and change your name once you cash in. You can also cash in on the money and move to Pitcairn Island (South Pacific). Said to be one of the most secluded areas in the world, the island is home to only about 50 people — but there’s high-speed internet.

All of your family, friends and food will be required to accompany you. But, Big Winner is there for you. cost is no object.

All credit reports for everyone

OK, so that’s the fun dream-of-winning-the-lottery privacy angle. Credit score is another privacy concern.

Recently, Experian’s website was hacked. Experian is one of three major credit reporting agencies. Brian Krebs, a computer security blogger and reporter, said that identity thieves had been retrieving credit reports for an unknown number consumers.

A glitch apparently allowed anyone to bypass security and gain access to a consumer’s report. All that was needed was a person’s name, address, birthday and Social Security number — items often found on the dark web for a price.

This month, the Consumer Financial Protection Bureau released an analysis of nearly half a million consumer complaints involving credit reporting bureaus — that’s Experian as well as Equifax and TransUnion. Rohit Chopra, Director at CFPB, said that the credit bureaus were “routinely on the top of the list of complaints submitted” by consumers. However the report highlighted improvements in the handling of complaints and the frequency of relief offered to consumers.

According to the bureau, credit reporting agencies should continue to work towards improving consumer financial protection laws compliance and better serving consumers. Chopra stated that the bureau will explore new rules to ensure that agencies follow the law, and not make profit by cutting corners.

The CFPB reported last summer that credit reporting companies “often allowed them to be used to coerce individuals in order to pay medical bills they might not even owe.”

According to the CFPB’s statistics, consumers who had medical bills placed in collections and sent to credit reporting agencies saw their credit scores drop. Lower scores were used as “weapons” by collectors to force people to pay. Some people became so frustrated they paid the money, regardless of whether it was owed. They wanted to stop the collection headaches and protect their credit rating from further damage.

Credit bureaus will cease reporting collections of medical debt below $500 this year. credit scoring models Unpaid medical debt will have a negative impact on your credit score.

False junk data on credit reports

Krebs, security researcher, said that Krebs discovered that Krebs’ Experian credit report had “so many errors” that it would take him a lot of work to fix them.

In October, the CFPB stated that “obviously false junk data” was a common feature of consumer credit reports. One example was the claim that someone had “defaulted on a loan before their birth.”

Keep these recent hacks and breaches in mind.

• You can update your password manager app master password or obtain one if you don’t have one. Additionally, you should change passwords on any financial websites you use.

• Request your credit file from annualcreditreport.com, the government website that allows you to access your three credit reports for free. Find errors and report them to the appropriate bureau.

• Take into account freezing your credit. Make sure your credit is not frozen if it was previously.

NerdWallet has more

Hal M. Bundrick, CFP® writes for NerdWallet. Email: [email protected]. Twitter: @halmbundrick.

The article Privacy Hacks May Hurt Your Credit + You Won! Can You Hide? Original publication: NerdWallet.