Notice Of Nationwide Recovery Service, Inc. Data Breach
This notice by the City of Chattanooga, Tennessee (the "City") is to inform potentially affected individuals of an incident involving Nationwide Recovery Service, Inc. ("NRS") that may impact the security of their information. NRS is a debt collection agency that received individual information in the normal course of its business as a vendor to the City. The City previously mailed letters to individuals potentially affected. However, the City is also providing this notice in an effort to make individuals aware of the incident.
This notice provides information about the incident, NRS's and the City's response to it, and steps that potentially affected individuals may take to better protect against the possibility of identity theft and fraud, should they feel it is necessary to do so.
What Happened? In July 2024, NRS discovered suspicious activity related to certain NRS systems which resulted in a network outage. NRS immediately took steps its secure its environment and launched an investigation to determine the nature and scope of the activity. The investigation determined there was unauthorized access to the NRS network between July 5, 2024, and July 11, 2024, and that certain files and folders were copied from NRS systems. As a result, NRS began an extensive review of the files and folders to determine what information they contained and to which NRS clients the information belonged. That review was completed on or about February 3, 2025.
What Information Was Involved? NRS undertook an in-depth review process to identify the individuals and NRS clients who were potentially impacted. NRS subsequently notified the City regarding the details of the incident and the affected individuals. After conducting further diligence, the City provided notice to affected individuals out of an abundance of caution because the NRS investigation determined that certain information relating to a limited number of individuals that had delinquent accounts for Chattanooga City Court fines, sewer services, and stormwater fees, may have been within the accessed systems, including names, addresses, Social Security Numbers, and certain NRS and City account information (e.g., NRS and City account numbers). At the time of publication of this notice, the City does not have any evidence of identity theft or fraud as a result of this incident.
What We Are Doing. The City and NRS take this incident and the security of individual information very seriously. Upon becoming aware of this incident, NRS immediately took steps to confirm the security of its systems and conduct an investigation. It also reviewed existing security policies and implemented additional measures to further protect against similar incidents moving forward. NRS reported this incident to law enforcement and regulators, as required by law. Separately, the City conducted additional diligence to understand the details of what occurred and the individuals impacted.
In addition to providing notice of the event, the City is working to make complimentary identify protection services available to potentially affected individuals. If you believe you may have been affected and wish to register your interest in receiving identity protection services, please call us at (423) 643-6311 or e-mail us at 311emails@chattanooga.gov and use the e-mail subject line "NRS Data Breach."
What You Can Do. We encourage individuals to remain vigilant against incidents of identity theft and fraud by reviewing account statements, explanation of benefits and health insurance/medical bills, and monitoring free credit reports for suspicious activity and to detect errors over the next 12 to 24 months. Please also review the information contained in the enclosed Steps You Can Take to Help Protect Your Information.
For More Information. If you have additional questions, please reach out to (423) 643-6311. We take this incident very seriously and sincerely regret any inconvenience or concern this incident may cause.
STEPS YOU CAN TAKE TO HELP PROTECT YOUR INFORMATION
Identity Protection Services
If you believe you may have been affected by the NRS incident and wish to register your interest in receiving identity protection services, please call us at (423) 643-6311 or e-mail us at 311emails@chattanooga.gov and use the e-mail subject line "NRS Data Breach."
Monitor Your Accounts
Under U.S. law, a consumer is entitled to one free credit report annually from each of the three major credit reporting bureaus, Equifax, Experian, and TransUnion. To order your free credit report, visit www.annualcreditreport.com or call, toll-free, 1-877-322-8228. You may also contact directly the three major credit reporting bureaus listed below to request a free copy of your credit report.
Consumers have the right to place an initial or extended "fraud alert" on a credit file at no cost. An initial fraud alert is a 1-year alert that is placed on a consumer's credit file. Upon seeing a fraud alert display on a consumer's credit file, a business is required to take steps to verify the consumer's identity before extending new credit. If you are a victim of identity theft, you are entitled to an extended fraud alert, which is a fraud alert lasting seven years. Should you wish to place a fraud alert, please contact any one of the three major credit reporting bureaus listed below.
As an alternative to a fraud alert, consumers have the right to place a "credit freeze" on a credit report, which will prohibit a credit bureau from releasing information in the credit report without the consumer's express authorization. The credit freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a credit freeze to take control over who gets access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, or any other account involving the extension of credit. Pursuant to federal law, you cannot be charged to place or lift a credit freeze on your credit report. To request a security freeze, you will need to provide the following information:
1. Full name (including middle initial as well as Jr., Sr., II, III, etc.);
2. Social Security number.
3. Date of birth.
4. Addresses for the prior two to five years.
5. Proof of current address, such as a current utility bill or telephone bill.
6. A legible photocopy of a government-issued identification card (state driver's license or ID card, etc.); and
7. A copy of either the police report, investigative report, or complaint to a law enforcement agency concerning identity theft if you are a victim of identity theft.
Should you wish to place a credit freeze, please contact the three major credit reporting bureaus listed below:
Equifax
https://www.equifax.com/personal/credit-report-services/
1-888-298-0045
Equifax Fraud Alert: P.O. Box 105069, Atlanta, GA 30348-5069
Equifax Credit Freeze: P.O. Box 105788, Atlanta, GA 30348-5788
Experian
https://www.experian.com/help/
1-888-397-3742
Experian Fraud Alert: P.O. Box 9554, Allen, TX 75013
Experian Credit Freeze: P.O. Box 9554, Allen, TX 75013
TransUnion
https://www.transunion.com/credit-help
1-800-916-8800
TransUnion Fraud Alert: P.O. Box 2000, Chester, PA 19016
TransUnion Credit Freeze: P.O. Box 160, Woodlyn, PA 19094
Additional Information
Consumers may further educate themselves regarding identity theft, fraud alerts, credit freezes, and the steps they can take to protect their personal information by contacting the consumer reporting bureaus, the Federal Trade Commission, or their state Attorney General. The Federal Trade Commission may be reached at: 600 Pennsylvania Avenue NW, Washington, D.C. 20580; www.identitytheft.gov; 1-877-ID-THEFT (1-877-438-4338); and TTY: 1-866-653-4261. The Federal Trade Commission also encourages those who discover that their information has been misused to file a complaint with them.
Consumers can obtain further information on how to file such a complaint by way of the contact information listed above. Consumers have the right to file a police report if they ever experience identity theft or fraud. Please note that in order to file a report with law enforcement for identity theft, consumers will likely need to provide some proof that they have been a victim. Instances of known or suspected identity theft should also be reported to law enforcement and the relevant state Attorney General. This notice has not been delayed by law enforcement.