7 Ways to Protect Yourself from ID Theft

ID theft: It’s still a Problem

Identity theft is everywhere. Turn on your TV, and you’ll see “special reports” on how to prevent it. Turn on the radio, and hear ads for services pledging to protect you from it. Search for it on Google, and you get 140 million results. In fact, according to a 2013 report by Javelin Research, there is one incident of identity fraud every three seconds.

The Javelin report also shows that the number of identity fraud incidents increased by 1 million consumers in the past year and the dollar amount stolen increased to $21 billion.

Fortunately, there are some easy ways to lower your risk of becoming another ID theft victim.

Don’t over-share on social networking websites

Thanks to social networking sites such as Facebook and LinkedIn, people are now putting unprecedented levels of personal information online, and many aren’t doing enough to keep it away from would-be criminals. A 2011 Javelin report found longtime social networking users were almost twice as likely as those newer to social networking to become victims of ID theft.

“The Internet has turned into this place where the less-educated consumer will willingly give up information in places where they just shouldn’t,” says Sean Brady, director in the identity management protection group for RSA, an information security firm based in Bedford, Mass.

The good news is you can protect yourself, Brady says. He recommends setting your privacy settings at the highest level and not sharing facts like your exact birth date, including the year, or information that could be used to answer your security questions such as your mother’s maiden name.

Ultimately, Brady says social media users will have to decide how much information they’re willing to disclose and weigh it against the benefits of social networking.

Maintain anti-virus and anti-malware software

Increasingly, identity thieves are using viruses and harmful programs known as malware to steal Americans’ financial information, says Michael McKeown, supervisory special agent, FBI Cyber Division.

These programs can enter your personal computer in several different ways, the most common being email with links or attachments that when clicked on, install malware on your machine. From there, they can record keystrokes to mine passwords, hijack online banking sessions and probe your PC for financial information.

Beside keeping anti-virus and anti-malware software up to date, another way to prevent yourself from being hurt by malware is to keep the financial information on your PC limited, Brady says. He advises consumers to decline every time you’re asked to save your password when you’re logging on to a financial site.

“Malware these days, that’s one of the first areas that it goes to, the location where all that’s kept,” Brady says.

Handle financial documents with care

Physical documents aren’t as much of a threat as they once were, simply because stealing them from a mailbox or the trash can be dangerous work for thieves, Brady says. Still, the key to minimizing the risk is storing needed documents carefully and destroying the ones you don’t need.

“A shredder is your friend,” says Steven Toporoff, attorney with the Federal Trade Commission’s Division of Privacy and Identity Protection.

Certain documents need to be retained for tax and other purposes. “Short of that, you should be shredding documents regularly that you no longer need, especially those that have any kind of account number or identifying information,” Toporoff says.

Also, shred any kind of financial solicitations you get in the mail, especially those credit card offers containing blank checks.

Create strong passwords

In a world where online banking is increasingly ubiquitous and access to large chunks of your net worth is just a username and password away, having a strong password is important.

That’s because once thieves have zeroed in on your email address or account username, they’ll often try to guess your password, either manually or using a computer program to try thousands of passwords until they find the correct one.

To keep from becoming a victim of ID theft, stay away from obvious passwords. “’12345′ is just not a good password,” Brady says. “Everybody has passwords that he can remember — mnemonics or very personal things that are better passwords that aren’t publicly known.”

Incorporate spaces, special characters, and lowercase and uppercase letters. “Whatever your password is, (it) should not be a word that’s found in the dictionary,” he says.

McKeown says using multiple passwords also can limit the damage a thief can do, especially for your online banking accounts.

Be careful with unsecured Wi-Fi

It may be convenient to do online banking at a cafe or to keep your home Wi-Fi network unsecured to avoid typing a password, but criminals have become increasingly adept at intercepting unsecured Wi-Fi communications, Toporoff says.

“You don’t want to do banking or to look up your financial accounts in a Wi-Fi situation where it’s not secure,” he says. “Others who are sitting there with you on the same network conceivably can get access to your information.”

To protect yourself, Toporoff recommends putting a password on your home Wi-Fi network and waiting until you get home or to another secured network to make financial transactions.

Don’t be reeled in by phishing scams

Phishing, or the practice of sending out fraudulent emails soliciting financial information or getting users to click on virus-laden links or attachments, is a growing identity theft threat, RSA’s Brady says.

That’s because phishing emails have grown increasingly convincing, thanks to growing information available to thieves about you to make the emails more persuasive. Brady says consumers are seeing emails, referring to them by name and containing their address, friends and family names or their job stolen from social networking sites and data breaches, known as “spear phishing.”

Brady cites one example of spear phishing as the 2011 data breach at Dallas-based marketing firm Epsilon, where thieves accessed millions of Americans’ email addresses and names.

“That gave the ability … to send personalized emails that have a greater chance of success,” he says.

To avoid becoming a victim, read emails carefully before clicking on links or attachments, especially if an email comes from out of the blue or asks for personal or financial information, Toporoff says.

Instead of clicking on such links, Toporoff recommends contacting the company directly, using contact information you know to be accurate.

H/T Source: Bankrate, Inc.

Boost your Deductible

Generally, when someone decides on a deductible amount for his or her car insurance, he or she sticks with it. But increasing the amount you pay for fender benders is the best place to look when trying to lower your annual out-of-pocket expenses, according to the Insurance Information Institute.

Admittedly, it’s a gamble. A car wreck will cost you more this way, but if you and everyone else on your car insurance policy have a history of safe driving, it’s a way to save money. And if the threat of a big deductible payment worries you, put the money aside. Use your annual savings as an auto emergency fund so you’ll never be caught by surprise.

Carpooling

Joining a car pool has benefits beyond helping the environment. If you carpool with three other people, with each driving one-week shifts, you can cut the miles you drive by up to 75 percent. And the less you drive, the more you save on car insurance.

“Most companies track mileage,” says Art Scott, a retired insurance agent who worked for State Farm for 30 years. “Anything under 7,500 miles is considered the pleasure rate — and that’s the lowest. Up to about 13,000 miles is a medium rate, and anything over that is a higher rate.”

The amount you save will vary depending on several factors, but J. Robert Hunter, insurance director for the Consumer Federation of America, says the difference could be as much as 25 percent.

Buy What You Need

The car insurance you need when your car is brand new is often considerably different than what you need later on. Initial rates are generally higher, since you’re required to get both comprehensive and collision coverage if you took out a car loan to pay for the vehicle. Comprehensive pays for the repair or replacement of your car from damage that doesn’t result from an accident, and collision covers damages if you’re in a wreck.

Once it’s paid off, most people forget to save money by exploring their car insurance options. Check the value of your car through the Kelley Blue Book or NADAguides.com. You might have more collision insurance than you need. And in some cases, it might be worth dropping it entirely, especially if your car is an older model.

“It’s often smart to drop collision on older vehicles,” says Mike Barry, spokesman for the Insurance Information Institute. “Comprehensive is so inexpensive, and you’re giving up a coverage you might need – that’s worth hanging on to, though.”

Among the reasons you might need comprehensive coverage: damage from storms, vandalism and theft.

Combine Your Policies

If you’ve got your car insurance through a different company than you did your homeowners insurance or renters insurance, you may be paying more than you should. It’s called “multilining” in the industry. It means that by combining policies with a single company, you can stack discounts and save money.

Car insurance is the biggest risk for policy writers. You’re more likely to get in an accident or have your car stolen than to have something catastrophic happen to your house. By combining policies, you lower some of the insurance company’s risk.

“Multiline is where they make their money, rather than just picking up a loser like auto insurance,” says Scott. “The more lines (of insurance that insurance companies) can get, the more they’re willing to give discounts for it.”

Audit Your Driving

Have you changed jobs recently? Maybe you’ve moved to an area where your favorite stores are a lot closer? Keep an eye on that odometer to save money. Just like with carpooling, reduced driving mileage means reduced car insurance rates, says Scott, the retired insurance agent. But people often don’t reach out to their insurance agents when their residence or driving habits change, and they end up sticking with unnecessarily high rates.

Consider a Tracking Device

If you know you’re a careful driver, you might save money with a new car insurance policy from Progressive Casualty Insurance Co. called MyRate. A small wireless device is attached to your car, letting the company monitor your driving habits, including distance, most frequent travel times and driving habits, such as sudden stops or speeding.

After the first year, you could save as much as 60 percent, according to Progressive. But you will be sacrificing some privacy for the savings. And in some states, such as New Jersey, if the company doesn’t like your driving habits, it could raise your rate by up to 9 percent.

Concerns about the device’s intrusive nature have slowed the rollout of MyRate in several states. In Pennsylvania, Progressive ultimately withdrew its filing to introduce the coverage, says Melissa Fox, deputy press secretary for the Pennsylvania Insurance Department.

Pay Your Bills

Your timeliness in paying your bills may not seem like it has anything to do with your driving abilities, but it’s something car insurance companies pay attention to. If you’ve got a good credit report, it’s worth checking with your agent to see about a discount and save money.

“Many insurers use credit-based insurance scores,” says Barry. “It’s a contentious issue in certain state houses … (but) insurers will say their studies show that if you’re responsible in your personal life, you’re less likely to file claims.”

There are other ways to get car insurance discounts. Older drivers who complete adult driver safety programs can get premium reductions, while many insurers offer discounts for teens who maintain a 3.0 grade point average in school.

H/T Source: Bankrate, Inc.

Identity theft

identitytheftprotection.net

How to Protect Yourself Now

There’s a lot of advice about how to deal with identity theft around these days – some helpful, some unrealistic, and some a little ridiculous. We’ve done the research for you and present the following easy-to-do, indispensable steps. These items should be considered MUST-DOs if you’re serious about minimizing the effect identity theft can have on your life.

1. Don’t leave printed personal and/or financial information lying around at home.
   This is a no-brainer, right? Yet more often than not, identity thieves are friends or relatives of the victim who get their personal information offline – not electronically. Keep checkbooks, social security information, billing information, and anything else a thief could use to steal your identity out of sight and secure.
2. Minimize the risks posed by mail theft.
   Shred bank and credit statements and credit card offers by hand before throwing them away. Even better, get a crosscut shredder. Don’t mail checks from your home mailbox. Instead, drop them off at a U.S. Mailbox or the U.S. Post Office. Also, have new checks delivered to your bank, not your home.
3. Get and review your bank statements electronically.
   View your personal finance statements electronically at least twice a month. By doing this, you will spot a fraud much sooner if it happens. Catching a fraud early minimizes the damage thieves can do and usually results in less time and money spent resolving problems.
4. Subscribe to a service that will provide you with a copy of one of your credit reports and FICO® scores on a regular basis.
   By monitoring your report and your FICO score for any changes you can’t account for, you’ll know if someone has applied for credit in your name.
5. Check and review your FICO scores and credit reports at least once a year.
   When you look at your reports, make sure you recognize all the account information listed. If you see anything you can’t account for, get to the bottom of it as soon as you can. As with electronic statements, checking your FICO scores and credit reports is one of the most sure-fire ways to spot a fraud quickly and minimize any damage done.
6. Avoid giving out your Social Security number whenever possible.
   Your SSN is the key to your credit reports and banking accounts and is the prime target of criminals. Anyone who already has your social security number (along with other information) already poses a risk: your doctor’s office, accountants, lawyers, loan officer, health insurance, schools, courts, etc. Shady employees at any of these places could steal your identity, so be very choosy about to whom you entrust it in the future. Never put your social security number on your checks or your credit receipts. If a business requests your SSN, ask to give them an alternate number (such as a driver’s license) instead and tell them why. If a government agency requests your social security number, there must be a privacy notice accompanying the request.
7. Secure your home computer.
   Install a firewall and buy virus-protection software, and if you dispose of a PC, remove your data with a “wipe” utility program (erasing files manually isn’t the same thing).
8. Be smart about choosing passwords.
   When choosing passwords, assume that someone already has a bunch of your personal information and is trying to break into your accounts. Don’t use the same password for all your accounts. Avoid using your SSN (or even a part of it), you or your mom’s maiden name, birth date, middle name, pet’s name or consecutive guessable numbers for passwords. If you have trouble remembering hard-to-guess passwords, write them down and keep them somewhere secure – hide them in a locked drawer, for example. It’s a bit of a hassle, but it’s nothing compared to having your identity stolen.

Signs of Identity Theft to watch out for

1. Unexpected phone calls from creditors.
   If you get a call from a creditor demanding payment for a purchase no one in your family can account for have the caller give you all the information possible and investigate.
2. Strange credit card charges.
   It’s easier to spot these if you keep all your receipts and reconcile them with your statements each month.
3. Getting turned down for credit unexpectedly.
   This is one of the more common ways victims discover they’ve been victimized – don’t be one of them. Subscribe to a service that will provide you with a copy of one of your credit reports and FICO scores on a quarterly basis.
4. Account usernames and passwords or ATM PINs stop working.
   This suggests that an identity thief may have changed your access codes.
5. Missing bills
   If you’re used to getting billed for services you subscribe to and the bills stop arriving, it could mean an identity thief has changed your address in order to use bank accounts without raising suspicion.
6. Strange information in your files.
   If information in a personal file definitely does not match up with you, it could be simply a case of mistaken identity – or it could be more than an innocent mistake. One way to help avoid mistaken identity problems is to use your middle name or middle initial on applications to help distinguish you from others who have the same name.

What to do if Identity theft strikes

1. Call the credit bureaus and get their help.
   
   TransUnion Fraud Assistance Department: 800-680-7289
   Call the number above. In 24 hours or less, a fraud alert will be put on all your credit reports, alerting creditors to call for permission before opening any accounts in your name. Unfortunately, creditors aren’t required by law to pay attention to fraud alerts, so you’ll have to check your credit reports frequently to make sure no new accounts are opened. If you live in California, Texas, Louisiana, or Vermont, however, you do have the right to put a credit freeze on your account – this will stop any attempt to open new accounts in your name. When you get your credit reports, make a note of your account number – you’ll need it when you talk to the agencies. Also, add a victim’s statement to each of your credit bureau reports asking creditors to contact you in person to verify all applications made in your name.
2. Lock thieves out of your accounts by changing all your account access information.
   Change your account passwords to something unguessable. Contact your banks and have them help you obtain new account numbers for all your accounts. Pick a new PIN number for ATM and debit cards. Close all credit card accounts and reopen them with new account numbers. You may want to contact the Social Security Administration at 800-772-1213 to get a new SSN. You also may want to contact your telephone, long distance, water, gas and electrical companies to alert them that someone may try to open an account in your name. You may need to change your driver’s license number if someone is using yours as an ID – go to the Department of Motor Vehicles to get a new number. Contact telephone and utility companies to prevent an ID thief from using a utility bill as proof of residence when applying for new credit.
3. Report the crime to all relevant authorities.
   Call your local police department. Make sure the police report lists all fraudulent accounts. Give as much information as possible. Get a copy of the police report and send it to the creditors and credit-reporting agencies as proof of the crime. Notify the Postal Inspector if you suspect mail theft. Contact the FTC at (877) 438-4338. Fill out the ID Theft Affidavit at the FTC’s Web site, make copies and send to creditors. The agency also has an online complaint form. While their investigators only tend to pursue larger fraud cases, the FTC does monitor all levels of identity theft crimes to find patterns and breaking up bigger identity theft rings. Notify the Office of the Inspector General if your social security number has been used fraudulently. Request a copy of your Personal Earnings and Benefits Statement and check it for accuracy.
4. Report all fraudulent transactions to creditors.
   Contact creditors for any accounts that have been tampered with or opened without your knowledge. Be sure to put your complaints in writing. Ask each creditor to provide you and your investigating law enforcement agency with copies of the documents showing fraudulent transactions. You may have to fight to get this documentation, but don’t give up. You’ll need these to help track down the perpetrator.
5. Keep a log of everything you do to resolve problems.
   Finally, create a log of all the contacts you make with authorities regarding the matter. Write down each person’s name, title, and phone number in case you need to re-contact them or refer to them in later correspondence.

H/T Source: myFICO

Benefits of Buying a Used Car

stopcurbstoning.com

There are many good reasons to buy a used car, including ample selection and the improving reliability of older cars, but the big draw for used-car buyers? Affordability.

Price

Buying a new car is definitely more expensive than buying a used one. Unless you decide to lease, your initial costs on a new car will be hefty. Financial institutions typically require down payments of at least 10 percent on a new-car loan (but it helps to add more). If you pay less money upfront, your monthly payment will be higher. Two other key considerations may tip the balance in favor of used cars: certification programs and new-car depreciation.

Certification Programs

One trend that makes buying used a better option is the proliferation of certified pre-owned programs. The idea started with luxury brands such as Lexus and Mercedes-Benz. Today, most manufacturers have instituted these programs.

General benefits of CPO cars include:

• Manufacturers usually consider only late-model, relatively low-mileage used cars and trucks with no history of major damage for their certification programs.
• CPO vehicles undergo a rigid inspection process of mechanical and cosmetic items before they obtain certification.
• CPO vehicles are normally covered by a warranty that extends beyond the original factory warranty. The warranty often includes the same features as a new-vehicle warranty, such as roadside assistance.
• Several manufacturers offer special financing on CPO vehicles, usually at lower rates than those on new-car loans or the typical, higher used-car loan rates.

Buyers should be aware that they pay more for a CPO car than for a typical used car, but the higher price should be worth it for the extra attention, coverage and the peace of mind buyers receive.

Avoiding Depreciation

Once you drive your new car off the dealership lot, its value will drop immediately in your early years of ownership. On mainstream vehicles, expect your new car to lose at least 30 percent of its value in the first two years of ownership. Consult used-car value guides to get an idea of what a particular model will be worth in the future. Leasing guides are another good source, even if you intend to buy instead. Lease payments are calculated based on residual, or resale, values.

H/T Source: Cars.com

4 Questions to Help You Decide on a New or Used Car

• The reasons to buy new or used aren’t the same for everyone
• Depreciation is the single largest expense of car ownership
• Maintaining a used car requires more time and money

Once you’ve finally decided to replace your current car, the next question to ask yourself is: Should I buy new or used?

That depends. Unfortunately there is no one-size-fits-all answer. There are sound reasons to buy new and sound reasons to buy used.

Too often the only questions we ask ourselves: Will I look good behind the wheel? and How big a monthly car payment can I afford? Neither of these questions will help you make smarter car buying decisions.

Here’s a tip: Buying a car based on how much car payment you think you can afford per month will almost always ensure you buy too much car and pay too much for it. It’s also the wrong question to ask yourself when deciding between new and used.

When making the new vs. used decision, each of us must examine our unique set of financial and life requirements. A little introspection is good for the soul and the wallet.

For most people, we think it makes more sense to buy used, but there are some exceptions.

Here are four questions to help you be a smarter consumer and navigate the new-used decision-making process.

Do you have a down payment or a trade-in with equity?

If your credit is good, you may have less problem buying new with little or no down payment than buying used. That’s because many manufacturers offer incentives for new cars that simply aren’t available in the used-car market. These are typically in the form of rebates, cash incentives and discounted financing.

Financing a used car will almost always require money down, whether in cash or a trade-in with equity.

If you do your research and wait for the right opportunity, you may find a new car with a large enough manufacturer incentive to cover the down-payment requirements.

Is there a good reason you, rather than someone else, should take the huge new-car depreciation hit?

Depreciation, or the loss in a car’s value over time, is sneaky because it’s a hidden cost most of us don’t face until trade-in time.

But if a car depreciates, say, $7,500 from the time you buy it to the day you sell it, that’s like throwing $7,500 away. That’s $7,500 you will never get back and won’t have available to spend on other things.

There’s usually an emotional tie with a car that’s missing in our relationship with the vacuum cleaner or washing machine; but in reality, a car is just another appliance. It’s not a buddy; it’s not an investment. It can convey status and provide some pleasure, but it won’t make us smarter, better looking, more interesting or wealthier.

Because of depreciation, generally it makes more sense to buy used and here’s why: On average, a new car loses between 20 and 30 percent of its value the moment it rolls off the dealer’s lot. Some cars can depreciate up to 50 percent in the first three years.

You don’t have to take our word for it. Kelley Blue Book has a Cost of Ownership calculator designed to figure the average five-year costs of any vehicle, including depreciation.

According to that calculator if you purchased a 2012 Honda Accord EX Sedan with a suggested retail price of $25,875, it would depreciate a whopping $6,735 in your first year of ownership and $1,883 in the second. That is, it would be worth 74 percent of its original value after the first year and 67 percent after year two. It would only be worth $15,525, or 60 percent of its original value, after three years. And Honda has a better track record for retaining value than many other brands.

How do you feel about throwing away $10,000 every three years?

If you purchased a two-year-old EX, the average retail price, according to KBB.com, would be $20,675. That’s a purchase-price savings of $5,200 – all of which is depreciation.

Depreciation, though, has little affect on owners who drive a car until the wheels fall off. After more than a decade or two, that old beater won’t be worth much in terms of trade-in or resale value any way. Those same owners, however, don’t seem to mind driving an older car, so why not buy a two-year-old model to begin with and save more than $5,000 on the purchase price?

Buying used should also translate into lower insurance premiums and personal property taxes – meaning even more savings.

Can you afford to maintain and repair a used car?

Some carmakers offer free maintenance for the initial years of new-car ownership. That’s in sharp contrast to the average cost of upkeep for a used car. It can be argued that buying used is just assuming someone else’s problems. It’s a roll of the dice.

You can take some steps to minimize the likelihood that you are buying a “problem” used car by having it inspected by a qualified mechanic and obtaining a detailed vehicle history report from an agency like Carfax or AutoCheck before buying, but some issues may still go undetected.

No matter how well a car has been cared for, at 30,000 plus miles, some bits and parts are going to naturally wear out; consequently, maintenance and replacement costs will be higher for a used car than a new one.

Unlike depreciation, repairs and maintenance are hard costs that must be addressed as they arise. KBB estimates that a two-year-old Honda Accord EX will cost $1,838 in maintenance and repairs the first year you own it. Those costs drop to $880 the next year, but it’s still a substantial amount. These are costs for which you will need to budget. Do you have the discipline to do that?

If you buy a nearly new used car, you may inherit some portion of the new-car warranty providing some protection for a few months or even a couple of years. Many car companies now provide powertrain warranties for five, six or even ten years. But be sure to check the automaker’s rules on transferring the warranty before you buy.

Many car companies also offer certified pre-owned cars that cost a little more, but offer a factory-backed limited warranty.

Can you cope with the time a used car spends in the shop?

Not only does a used car cost more to keep operating, but it will likely spend more time in the shop. It may only be a day here and there, but could be a week or more for bigger repairs.

On average, new cars spend less time in the shop. Moreover some manufacturers or dealers offer loaner cars during routine maintenance visits while a car is under warranty. Can you deal with a used car’s extra down time?

Once you answer these questions for yourself, you will figure out whether it makes more sense for you to buy a new or used car.

H/T Source: AutoTrader.com