What is a data breach? A guide for families

Your email gets a strange login alert. A company says your info was "compromised." Sound familiar? You might’ve been caught in a data breach.

A data breach happens when sensitive or confidential information is accessed, shared, or stolen by someone who shouldn't have access. It can affect companies, governments, schools, and even families. If you've ever had your password stolen or credit card info leaked, you've experienced the fallout firsthand.

What causes a data breach?

Some breaches are caused by cybercriminals. Others? Just honest mistakes. Here are some common culprits:

Weak or stolen passwords

Using "123456" or the same password for every account? Hackers love that—it’s easy for them to steal. Once one password is cracked, it’s easy for them to try it elsewhere. 

Phishing attacks

Phishing scams pose as legitimate organizations to trick you into clicking malicious links or sharing info like passwords or Social Security numbers. They’re surprisingly common and can target adults and kids alike, especially as kids spend more time online.

Software vulnerabilities

#1 family finance and safety app

#1 family finance and safety app

Teach your kids and teens to earn, save, and invest with Greenlight.

Use code GLBLOG for one month, on us.*

Try Greenlight today

Outdated systems or apps can act like open windows for hackers. Companies need to patch software regularly, but when they don’t, attackers exploit these vulnerabilities to gain access to private databases.

Insider threats

Sometimes it’s not a hacker on the outside, but someone on the inside. Employees might accidentally email sensitive data to the wrong person, or worse, intentionally leak or sell information.

Lost or stolen devices

If a phone, laptop, or tablet is lost and unencrypted, whoever finds it may gain access to the personal data inside. Families should secure devices with strong passwords or biometrics.

What types of information can be breached?

A data breach can target just about any kind of personal information, including:

• Full names and birthdates

• Social Security numbers

• Credit card or bank info

• Medical records and insurance details

• Login credentials (email, username, password)

• School or education-related records

For families, this could mean unauthorized purchases, new accounts opened in your child’s name, or even health insurance fraud.

What happens after a breach?

For individuals

Once data is exposed, it can be sold on the dark web. That information could then be used to open credit cards, apply for loans, or steal tax refunds. Victims often spend months or even years undoing the damage.

For businesses

Beyond technical cleanup, businesses may face fines, lawsuits, and long-term loss of customer trust. Breach notification laws require them to contact affected individuals and sometimes regulatory bodies.

For families

The emotional toll can be just as serious as the financial one. Dealing with fraudulent accounts, resolving credit issues, and educating kids about online risks can feel overwhelming. And if your child’s Social Security number is stolen, it might not surface until they apply for their first job or college loan.

How can families protect themselves?

There are a few ways that families can be proactive about protecting themselves from a data breach. 

Use strong, unique passwords

Every family member should have a different password for every account. A password manager can help keep things organized. For younger kids, teach them how to create a "passphrase" using a favorite song lyric or phrase.

Turn on two-factor authentication (2FA)

2FA requires both a password and a second step (like a code sent to your phone) to log in. It’s one of the easiest and most effective ways to add security.

Teach your kids to spot phishing

Discuss red flags: strange URLs, urgent messages, and unfamiliar email addresses. Make it a regular conversation, like reminding them to look both ways before crossing the street.

Keep devices and software updated

Updates don’t just fix bugs; they fix security issues. Turn on automatic updates when possible.

Monitor credit activity

You can request a free credit report annually at annualcreditreport.com. For kids, a credit freeze with the major bureaus can help prevent misuse of their identity. Or, you can use something like Greenlight, the #1 family finance and safety app, that includes credit and identity theft monitoring* as part of its Family Shield plan tier. 

Limit what you share

Teach kids to treat personal info like treasure. Avoid sharing birthdays, full names, or school details on public apps, games, or social media.

Legal protections and breach notifications

In the U.S., several laws help protect sensitive data:

• HIPAA safeguards health information

• FERPA protects student records

• COPPA limits data collected from children under 13

Companies that experience a data breach are often required to notify affected users. 

What to do if your family is affected

Found out your data was part of a recent data breach? Do these things as soon as possible to mitigate any potential repercussions. 

1. Change passwords immediately for any affected accounts.

2. Enable 2FA where available.

3. Check your bank statements and credit card activity.

4. Order credit reports from all three bureaus and review carefully.

5. Freeze your child’s credit if they’re under 18.

6. Report identity theft through identitytheft.gov.

7. Stay alert for phishing emails or calls following the breach.

In an increasingly connected world, data breaches aren’t going away. But families can take smart steps to stay safe. Think of it like locking your front door — simple habits go a long way.

Protect your $ and family. Keep everyone's safety and finances in check with Greenlight — the all-in-one educational money app. Try Greenlight, one month, risk-free.†

This blog post is provided "as is" and should not be relied upon as a substitute for professional advice. Some content in this post may have been created using artificial intelligence; however, every blog post is reviewed by at least two human editors.

*Premium monitoring services are offered by Experian.

**Insurance offered by Acrisure, LLC is provided by ACE American Insurance Company and its U.S.-based Chubb underwriting company affiliates. www.chubb.com. Additional details can be viewed here. See link for policy information. Insurance Products are not insured by the FDIC or any federal government agency and are not a deposit or other obligation of, or guaranteed by, any bank or bank affiliate.