If you’ve been doomscrolling on social media lately — no judgment, we’re all doing it — you might have heard of a major cybersecurity breach affecting millions of Americans.

Technology website WIRED reports that cybercrime gangs have been stealing consumer data from corporations using software called ransomware. Cybercrime gangs will demand a seven- or eight-figure ransom from corporate leaders in exchange for the safe return of the company’s consumer data. In 2023, victims paid more than $1 billion — that we know of — to cybercrime gangs, according to a report by security firm Mandiant, a Google subsidiary.

This showdown between cybercrime gangs and corporate leaders is fascinating… until you realize that it’s your consumer data being used as a bargaining chip.

For example, Patelco Credit Union, which serves members in Northern California, detected a ransomware attack on June 29 that involved unauthorized access to its databases, according to Patelco’s website. Days later, ABC7 Bay Area News reported that some members’ bank accounts were frozen. At the Patelco location, members were only allowed to take out $500 on the first of the month, when rent is due.

Like most credit unions, Patelco is FDIC-insured, which means that its members are covered for up to $250,000 in the event of a bank failure. Patelco quickly contacted all members whose data was stolen and helped them navigate any losses due to identity theft. The Dublin-headquartered credit union also offered a complimentary two-year membership to a credit monitoring service called Experian IdentityWorks Credit 3B, which offers up to $1 million in identity theft insurance.

Protect your finances by freezing your credit

These data breaches give hackers access to your name, Social Security number, and banking information — every piece of information a hacker needs to fraudulently apply for a loan or credit card under your name.

The only thing you can do as a consumer to protect yourself from cyberattacks is to freeze your credit. When you freeze your credit, you let the big three credit bureaus — Experian, Equifax, and TransUnion — know that you don’t want anyone to access your credit report. When you apply for a credit card, a mortgage, or any kind of line of credit, the institutions that want to lend you money will pull your credit report.

If a hacker tries to apply for a loan or credit card under your name, credit bureaus will refuse to hand over your credit report, thwarting the hacker’s efforts to steal your identity. When you eventually want to apply for a loan or credit card yourself, you can simply unfreeze your credit temporarily and freeze it again when you’re approved for the loan.

Who’s at higher risk of getting their identity stolen?

Technically, everyone is at risk of getting their identity stolen by these cyberattacks. Cybercrime gangs are also targeting companies other than financial institutions.

According to a 2022 report by CybSafe and the National Cybersecurity Alliance, younger generations are particularly vulnerable to various types of cybercrime. This is especially concerning given recent news that Gen Z may be facing even greater financial challenges than their millennial predecessors, with higher spending on essentials like housing and car insurance, and a greater likelihood of being in debt despite higher wages.

The study found that Gen Z participants were nearly three times more likely to fall victim to phishing scams that resulted in loss of money or data compared to older age groups. Millennials aren’t far behind, with 20% reporting they’ve been victims of identity theft. Additionally, over a third of Gen Z respondents reported being victims of cyberbullying. These findings underscore the fact that tech-savvy doesn’t mean scam-proof: young adults urgently need cybersecurity skills to match their online confidence, especially when their financial margins for error are so thin.

For example, tech company Change Healthcare, recently acquired by insurance provider UnitedHealth Group, reported a ransomware attack on February 21. While the attack on Patelco was contained to the members of that particular credit union, Change Healthcare clients may be affected regardless of where they bank.

Additionally, a lack of transparency from affected companies leaves consumers vulnerable.Change Healthcare knew of the ransomware attack on February 21, but the company did not notify affected clients until July 29 via mail. In this instance, even though Change Healthcare’s cybersecurity team took swift action on the backend to control the attacks, affected clients were left defenseless for five months.

Should I freeze my credit?

In a perfect world, every American would freeze their credit to prevent identity theft because we’re all at risk.

However, people who plan on taking out loans — like mortgages, home equity lines of credit, car loans, and personal loans to cover big personal milestones such as IVF for queer couples — have the most to lose.

Some examples of worst-case scenarios: You’ve saved thousands of dollars for a down payment on a home. When you’re ready to apply for a mortgage, you might find out your credit score has dropped dramatically because of fraudulent charges on your card or unaccounted items on your credit report. Suddenly, your dreams of owning a home are out of reach.

Or maybe, you’re a queer couple ready to have children. You’ve crossed your t’s and dotted your i’s on the insurance front, and now you need a personal loan to pay for the IVF treatments not covered by insurance. When your lender pulls your credit report, they might find fraudulent lines of credit that would make you ineligible for the IVF loan.

Even if you aren’t preparing for a big financial milestone, it’s still a good idea to freeze your credit. Those working hard to pay off credit card debt and improve their credit might find their efforts canceled out by hackers stealing their identity.

How do I freeze my credit?

Visit the websites of the big three credit bureaus below, or call their customer service line to freeze your credit:

Remember, freezing your credit is a simple yet powerful step you can take to protect your financial future from the growing threat of cybercrime.

Leo Aquino (he/they) is an award-winning independent journalist covering anti-capitalist personal finance at Queer & Trans Wealth. Leo is also a trauma-informed financial coach and educator who provides affordable services for queer, trans, and BIPOC communities.