Have you ever received one of those letters after a company you deal with gets hacked? They apologize and offer free credit monitoring as a way to “protect” you. It sounds helpful, but what are you really signing up for? Amanda Aronczyk from the Planet Money podcast decided to find out after
getting one of these letters herself.
The Letter
Amanda's letter came from Ticketmaster, notifying her that her personal data might have been stolen. Companies are legally required to send these
notifications under many state data breach laws, according to consumer protection lawyer Jim Francis. The letters often offer free credit monitoring services from a major credit bureau like TransUnion.
The Fine Print
When Amanda examined the terms and conditions with Jim, they uncovered some concerning clauses. Initially, the agreement included an arbitration clause and a class action waiver, meaning she’d waive her right to sue if she signed up for the service. TransUnion later claimed this clause was posted in error and removed it.
Even more alarming, the terms revealed that by activating the credit monitoring service, Amanda would agree to let TransUnion collect and share personal data, such as her ethnicity, marital status, and even how long it took her to fill out the form. TransUnion denied selling personal information but acknowledged their terms of service included broad data-sharing permissions.
A Smarter Alternative
Instead of signing up for the free service, Amanda chose to freeze her credit. A credit freeze prevents anyone from opening new accounts in your name without your consent and is considered one of the best ways to protect yourself after a data breach.
The Takeaway
Those free credit monitoring offers might not be as free or protective as they seem. Always read the fine print carefully, as you could unknowingly waive legal rights or give up even more of your personal
data. Sometimes, taking matters into your own hands—like freezing your credit—may be the better option.
Tips for Protecting Yourself
- Ensure all accounts, particularly those related to finances
and healthcare, are secured with strong, unique passwords. Change your passwords often and whenever possible, activate multi-factor authentication.
- After a breach, threat actors often target victims with phishing emails pretending to offer help. Avoid clicking on unsolicited links or providing personal information.
- Monitor your credit reports and periodically review your medical records to ensure no unauthorized activity has occurred. Federal law allows you to access your health records from providers.
