Credit Report Websites are Being Hacked

If it isn’t enough that hackers get into credit card processors databases and other company databases, what about the sites that offer your credit report for a fee or free?  According to MSNBC.com, hackers from a fraud ring in Russia have been infiltrating certain sites and are selling the credit reports for a fee depending upon the credit score.  This information can be used to open up new accounts in your name, which takes time and money to resolve.

Websites

There are overseas websites that host online bazaars where hackers buy and sell stolen data and share tips on cracking secure sites that offer credit reports to consumers.  Most of these websites are located in the former Soviet Union, with the domain of .su, which stands for the former Soviet Union.   On these sites, they even brag about how easy it is to infiltrate some of very popular credit reporting websites.

These overseas websites share tips on how to guess the authentication answers and share the most common questions, such as who holds your mortgage and previous street address.   MSNBC.com was the first to raise the alarm on this and reviewed dozens of stolen credit reports.

The sites offering credit reports and scores are suppose to be secure and ask a series of multiple choice questions to authenticate the consumer.  These questions are usually about information on the credit report.  Unfortunately, most sites ask some of the same questions, and hackers are getting better at guessing the answers by process of elimination.

Selling credit reports

The advertisements on these websites list prices for reports with credit scores.  The higher the score, the more they charge for the credit report.  Credit scores in the 701 to 750 range were $80, those in the 751 to 799 were $85, and 800 and over were $90. Those buying these reports use the credit report information to open new accounts.

You may not know that they have looked at your report unless you obtain a copy of your report. This inquiry would be listed as an inquiry initiated by you when you monitor or review your credit report.  This inquiry does not display on the credit reports that the credit grantor receives, only those requested by consumers. Another sign will be a new account opened on your credit report that you didn’t authorize.

Hackers are getting more aggressive.  One way to protect yourself is to freeze your credit report so that no new accounts can be opened in your name without your knowledge.

Credit Expert Witness, John Ulzheimer, is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry.  Follow him on Twitter here.

Categorised in: Credit Monitoring, Credit Report, Credit Score, Debt, Identity Theft, Money & Identity

This post was written by John Ulzheimer