Data breach is what happens when a organization or person has information stolen or lost that could be used to steal thier identity or use credit in an unauthorized manner. This could be financial records, medical records, student records, and more. This info could be taken through hackers, loss of files thrown away accidentally, stolen laptops, we have even heard of banks that have left records in bags for the garbage pick up. Once we got a phone call from a realtor who left a briefcase in a taxi that contained the records of 10 potential buyers. These records included social security numbers, addresses, and bank account numbers.
If this happens it is important to put a fraud alert on your credit reports and to monitor your credit closely.