In September 2017, Equifax, one of the three major credit reporting bureaus in the United States, experienced a massive data breach that exposed the personal information of approximately 147 million Americans. This breach was one of the largest in history and included sensitive data such as names, birth dates, addresses, Social Security numbers, and in some cases, credit card information.
Unfortunately, where money is involved, scammers quickly follow. Since the announcement of the settlement, numerous scams have emerged targeting those affected by the breach. These scams aim to steal personal information or money from people who are simply trying to claim their legitimate compensation.
The Federal Trade Commission (FTC) and other consumer protection agencies have issued multiple warnings about these scams, which continue to evolve and target vulnerable consumers. Understanding these scams and knowing how to protect yourself is essential to ensure you don’t become a victim twice – first from the breach and then from scammers trying to exploit it.
Key Takeaways About Equifax Settlement Scams
- The legitimate Equifax settlement website is www.equifaxbreachsettlement.com – be wary of similar-looking domains
- Official settlement emails only come from distribution@equifaxbreachsettlement.com or info@equifaxbreachsettlement.com
- Scammers create fake websites and send phishing emails mimicking official Equifax communications
- Never provide your full Social Security number, banking details, or passwords to verify your identity for settlement claims
- Legitimate settlement notices will address you by your full name and won’t ask for payment to process your claim
- If you’re unsure about a communication, verify through official channels like the FTC website or by calling the settlement administrator at 1-833-759-2982
- Report suspected scams to the FTC at ReportFraud.ftc.gov
- The settlement administrator began sending additional payments in November 2024 to eligible claimants from leftover funds
- Be especially vigilant about unsolicited calls, as the settlement administrator does not make cold calls about your claim
- Always check official sources like ftc.gov/Equifax before responding to any settlement-related communications
The Legitimate Equifax Settlement Details
Before discussing scams, it’s important to understand what the genuine Equifax settlement entails. This knowledge will help you identify when something doesn’t seem right.
In July 2019, Equifax agreed to a settlement to resolve multiple lawsuits brought by consumers, state attorneys general, and the Federal Trade Commission. The settlement received final approval in January 2020 and included several key components:
- A Consumer Restitution Fund of at least $380.5 million, later increased to up to $425 million
- Free credit monitoring services for up to 10 years
- Identity restoration services for at least 7 years
- Cash payments for time spent dealing with the breach (up to $25 per hour)
- Reimbursement for out-of-pocket losses related to the breach
The initial deadline to file claims was January 22, 2020, but an extended claims period for certain benefits ran until January 22, 2024. Settlement benefits for eligible out-of-pocket losses and time spent began issuing in December 2022, with additional payments sent in late 2024 due to leftover funds in the settlement.
The settlement has been administered by a court-appointed third party, not by Equifax directly. This is an important detail to remember when identifying potential scams.
Common Equifax Settlement Scam Tactics
Scammers have developed numerous tactics to trick consumers into sharing personal information or sending money, all while pretending to be associated with the Equifax settlement. Here are the most common approaches:
Fake settlement websites that mimic the official site have proliferated since the settlement announcement. These sites often have URLs that look similar to the legitimate equifaxbreachsettlement.com, using variations like “claim,” “settlement,” or “equifax” in different combinations.
These impostor websites are designed to collect personal information that can be used for identity theft or to install malware on your device. Some even request payment information for “processing fees” – a clear red flag since the legitimate settlement never requires payment to file a claim.
Phishing emails and text messages represent another major scam tactic. These communications claim to be from Equifax or the settlement administrator and typically contain urgent messages about “claiming your settlement” or “verifying your eligibility.” They often include links to fake websites or attachments containing malware.
These messages frequently create false deadlines or claim that you’ll lose your payment if you don’t act immediately – tactics designed to make you act without thinking carefully.
Phone scams have also emerged, with callers claiming to represent Equifax or the settlement administrator. They may ask for personal information to “verify your identity” or request payment information to “process your claim.” The legitimate settlement administrators do not make unsolicited calls asking for sensitive information or payments.
Warning Signs of Equifax Settlement Scams
Knowing the warning signs of Equifax settlement scams can help you avoid becoming a victim. Be on alert for these red flags:
Requests for upfront fees or payments should immediately raise suspicion. The legitimate settlement process never requires you to pay money to receive your benefits or to file a claim. If anyone asks for payment to help you get your settlement money, it’s a scam.
Urgent deadlines and pressure tactics are common in settlement scams. Messages claiming “this is your last chance” or “act within 24 hours” are designed to make you respond without thinking critically. The legitimate settlement process provides reasonable deadlines and doesn’t use high-pressure tactics.
Requests for complete Social Security numbers are another warning sign. While the official eligibility verification tool asks for the last six digits of your Social Security number, scammers often request the full number, which can be used for identity theft. Similarly, requests for account passwords or PIN numbers are never part of the legitimate process.
Generic greetings like “Dear Claimant” or “Dear Consumer” instead of your actual name can indicate a mass-sent scam message. Legitimate communications from the settlement administrator will address you by your full name.
Poor grammar and spelling errors are often present in scam communications. While not always a definitive sign, these errors can indicate that the message didn’t come from a professional organization.
Unusual sender email addresses that don’t match the official addresses (distribution@equifaxbreachsettlement.com or info@equifaxbreachsettlement.com) are a clear warning sign. Always check the full email address, not just the display name, which can be easily spoofed.
How to Verify Legitimate Equifax Settlement Communications
With scammers becoming increasingly sophisticated, it’s critical to know how to verify whether communications about the Equifax settlement are legitimate. Here are steps you can take:
Check the official website at www.equifaxbreachsettlement.com for information. This is the only legitimate website for the settlement, operated by the court-appointed settlement administrator, not by Equifax.
Verify your eligibility through the official tool at eligibility.equifaxbreachsettlement.com, which requires only your last name and the last six digits of your Social Security number.
Contact the settlement administrator directly if you’re unsure about a communication. You can reach them at 1-833-759-2982 or by emailing info@EquifaxBreachSettlement.com.
Check the FTC’s website at ftc.gov/Equifax for official information and updates about the settlement. The FTC has been actively monitoring and warning about settlement-related scams.
For email communications, check that they come from one of the two official addresses: distribution@equifaxbreachsettlement.com or info@equifaxbreachsettlement.com. Legitimate emails will address you by your full name and won’t ask for sensitive information or payment.
If you received a notification about additional settlement payments in late 2024, know that these are legitimate distributions from leftover funds. The settlement administrator began sending these notifications in November 2024, with payments distributed through December 2024.
Steps to Take If You’ve Been Targeted by a Scam
If you believe you’ve encountered an Equifax settlement scam, taking quick action can help protect yourself and others. Here’s what to do:
Stop all communication with the suspected scammer immediately. Don’t click on any links, download attachments, or provide any information.
Report the scam to the Federal Trade Commission at ReportFraud.ftc.gov. The FTC uses these reports to identify trends and take enforcement actions against scammers.
Contact your state attorney general’s office, as they often have consumer protection divisions that investigate scams and can provide additional assistance.
If you shared financial information like credit card or bank account numbers, contact your financial institutions immediately to protect your accounts. You may need to close affected accounts and get new cards or account numbers.
If you shared personal information like your Social Security number, visit IdentityTheft.gov for specific steps to take to protect your identity. This may include placing a fraud alert or credit freeze on your credit reports.
Alert friends and family about the scam, especially if they were also affected by the Equifax breach. Sharing information about scams is one of the best ways to prevent others from becoming victims.
Document everything related to the scam, including copies of messages, names, phone numbers, and any other details you can recall. This information can be helpful to law enforcement and other agencies investigating the scam.
Protecting Your Identity Beyond the Settlement
The Equifax breach and subsequent settlement serve as important reminders of the need for ongoing vigilance in protecting your personal information. Here are strategies to help secure your identity beyond just avoiding settlement scams:
Regularly check your credit reports from all three major bureaus (Equifax, Experian, and TransUnion). You can get free weekly credit reports through AnnualCreditReport.com. Review them carefully for accounts or inquiries you don’t recognize.
Consider placing a credit freeze on your credit files with all three credit bureaus. A freeze prevents lenders from accessing your credit report, making it much harder for identity thieves to open new accounts in your name. Credit freezes are free and don’t affect your credit score.
Set up fraud alerts if you don’t want to place a full credit freeze. An initial fraud alert lasts for one year and requires creditors to verify your identity before opening new accounts or increasing credit limits.
Use strong, unique passwords for all your online accounts, especially financial accounts and email. Consider using a password manager to help generate and store complex passwords securely.
Enable two-factor authentication whenever possible, adding an extra layer of security beyond just your password.
Be cautious with personal information online and offline. Don’t share sensitive details on social media, and properly dispose of documents containing personal information by shredding them.
Monitor your financial accounts regularly for suspicious transactions. Many financial institutions offer real-time alerts for transactions that you can set up to quickly identify potential fraud.
Resources for Equifax Breach Victims
If you were affected by the Equifax breach, several resources are available to help you navigate the settlement process and protect your identity:
The official settlement website at www.equifaxbreachsettlement.com provides comprehensive information about benefits, eligibility, and important dates.
The Federal Trade Commission’s dedicated page at ftc.gov/Equifax offers updates on the settlement and warnings about related scams.
The Consumer Financial Protection Bureau at consumerfinance.gov/equifax-settlement provides additional guidance on the settlement and steps to protect yourself.
IdentityTheft.gov, operated by the FTC, offers step-by-step guidance for responding to identity theft and protecting your personal information.
Your state attorney general’s office may have additional resources specific to your state’s laws and protections for data breach victims.
Consumer advocacy organizations like the Consumer Federation of America (consumerfed.org) and the Identity Theft Resource Center (idtheftcenter.org) provide educational materials and assistance for identity theft victims.
Remember that while the initial claims period for the settlement has ended, identity restoration services remain available to all class members for at least seven years from the settlement’s effective date, regardless of whether you filed a claim.
The Future of Data Breaches and Consumer Protection
The Equifax breach and its aftermath highlight broader issues about data security and consumer protection in our increasingly digital world. Understanding these trends can help you stay vigilant against future threats.
Data breaches continue to grow in frequency and scale, with millions of consumers affected each year. No organization, regardless of size or industry, is immune to these threats. This reality means that your personal information may be compromised multiple times through no fault of your own.
Settlement scams follow major data breaches with predictable regularity. Whenever a large settlement is announced – whether related to data breaches, product liability, or other issues – scammers quickly develop schemes to exploit consumers’ interest in receiving compensation.
Regulatory responses are evolving but often lag behind the pace of technology and threats. Since the Equifax breach, many states have strengthened their data breach notification laws and consumer privacy protections, but a comprehensive federal approach remains elusive.
Individual vigilance remains essential, regardless of regulatory protections. Taking proactive steps to monitor your financial accounts and credit reports, using strong security practices, and staying informed about scams are your best defenses.
The emergence of artificial intelligence tools is changing both sides of this equation – enabling more sophisticated scams while also powering more effective security measures. Staying informed about these developments can help you adapt your personal security practices accordingly.
Frequently Asked Questions
Is the Equifax settlement still active?
Yes, while the deadline for filing initial claims passed on January 22, 2020, and the extended claims period ended January 22, 2024, the settlement administrator is still processing claims and distributing payments. Additional payments from leftover funds began distribution in November 2024.
How can I tell if an Equifax settlement email is legitimate?
Check that it comes from distribution@equifaxbreachsettlement.com or info@equifaxbreachsettlement.com, addresses you by your full name, doesn’t ask for sensitive information, and doesn’t request payment.
What should I do if I’ve responded to a settlement scam?
Report it to the FTC, contact your financial institutions if you shared financial information, consider placing a credit freeze, and monitor your accounts closely for suspicious activity.
Can I still claim money from the Equifax settlement?
No, the deadline for filing new claims has passed. However, if you previously filed a valid claim, you may be eligible for additional payments from leftover settlement funds.
Will the settlement administrator call me about my claim?
The settlement administrator does not make unsolicited calls about your claim. If you receive such a call, it’s likely a scam.
How much money did people receive from the settlement?
Payment amounts varied widely based on claim type. Many claimants received small amounts ($5-$25) for basic claims, while those with documented losses received larger amounts up to the limits established in the settlement.
Do I need to pay anything to receive my settlement benefits?
No, legitimate settlement benefits never require payment of fees or costs to receive them. Any request for payment is a sign of a scam.
Where can I verify if I was affected by the Equifax breach?
You can check if your information was exposed using the official tool at eligibility.equifaxbreachsettlement.com by entering your last name and last six digits of your Social Security number.
What information was stolen in the Equifax breach?
The breach exposed names, Social Security numbers, birth dates, addresses, and in some cases, driver’s license numbers and credit card information of approximately 147 million Americans.
How long will the identity restoration services be available?
Identity restoration services will be available to all class members for at least seven years from the settlement’s effective date, regardless of whether you filed a claim.
