Data Breaches: How They Happen & What to Do

A data breach happens when your private information – for example, passwords, Social Security numbers, banking and credit card information, medical and other personal details – is stolen or taken from a company’s computers or databases by cybercriminals. Think of it like thieves breaking into a filing cabinet full of sensitive documents, but in the digital world.

You or someone you know has most likely received a data breach notice in the last year. Data breaches are increasingly commonplace for several reasons including the fact that companies are often unwilling to invest money and time into proactively securing their networks and training their employees.

Received a Data Breach Notice? Take Action!

If you received a NOTICE OF DATA BREACH letter recently, contact the Almeida Law Group data breach attorneys for a free consultation, at (916) 241-3084 to discuss your legal rights and options, or fill out this form and we will reach out.

The Value of Your Information

Your information is incredibly valuable. When hackers get hold of it, they can use it for all kinds of crimes. They can get loans or credit cards in your name, steal money from your bank accounts, engage in identify theft, use your health insurance to obtain medical care or even sell this sensitive private information to other cybercriminals.

Some examples of your information that may be at risk in a data breach can be found below:

• Financial Information: credit card numbers and bank account details. These details can be used for direct financial theft or fraud and may be resold on dark web markets for use in illicit activities.
• Personal Identification Information: names, Social Security Numbers, date of birth, and government IDs. Identity theft is a significant risk when this information is exposed. Fraudsters can use these details to create fake identities, open bank accounts, apply for loans, or file false tax returns.
• Health Information: medical records and insurance numbers. Health-related data can be used to commit medical fraud, prescribe drugs under someone else’s identity, or for blackmailing purposes. It is often more valuable on the black market than financial information.
• Email Addresses and Passwords: These can be used for spam, phishing campaigns, or credential stuffing (trying passwords across multiple accounts). If they are tied to accounts with sensitive data, the value increases.

Data Breaches Are on the Rise

Data breaches present very serious risks to consumers, especially the risk of identity theft. In addition to financial losses and dangers to their healthcare, victims also experience emotional distress and worry that their information may be out there in the hands of criminals for many years to come.

The number of data breaches in the U.S. has significantly increased, from a mere 447 in 2012 to more than 3,200 in 2023. And 2024 saw the biggest healthcare breach of all time. Hackers stole personal health information of about 100 million US individuals from Change Healthcare.

The ransomware attack resulted not only in the theft of patient information, but also caused huge disruptions, causing outages across the US healthcare system and even preventing patients from filling their prescriptions. This breach happened because the company – a subsidiary of the behemoth United Healthcare –failed to implement basic safeguards, like multifactor authentication protocols.

How to Protect Yourself After a Data Breach

If your information was or may have been stolen in a data breach, you need to protect yourself. If you have received a data breach notice, do not throw it out. Read it carefully.

If the company offers free credit monitoring, follow the steps in the letter to sign up for the identify fraud monitoring services they are offering. Doing so will not affect your rights to pursue a data breach lawsuit in the future.

Once you sign up for credit monitoring, check your credit report frequently to look for potential signs of fraud. If your financial account was compromised, change all passwords and security questions to it and continue to monitor the affected account closely.

Are You Entitled to Compensation?

If you received a data breach notice from any company, you may be entitled to compensation from the entity that failed to keep your data secure, even if you have not seen any fraudulent activity on your accounts. It is important to contact attorneys experienced in data breach litigation, who know how to hold negligent parties accountable, can navigate complex privacy laws, and secure compensation for the victims of a data breach.

Our Experience in Data Breach Cases

The Almeida Law Group attorneys specialize in bringing class action lawsuits against corporations and institutions that mishandle sensitive private information. We hold them accountable and make sure victims get the benefits and compensation they deserve. Our firm has been court-appointed lead and co-lead class counsel in many important data breach class actions, recovering millions for the victims.