Category Archives: Credit Cards

As Scammers try harder, just be more clever! (update)

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We are constantly assaulted by texts, emails and calls with people trying to access our information for their benefit or trying to trick us into sending them payments.  How do you protect yourself?

The first step:  Think before panicking and reacting; careful observation could save you from a scam!  If you have an emotional response to a message, try to assess why and wait to respond.  Scammers use deception and emotions, so be wary.  

Second step:  practice computer and internet hygiene – install all updates, run anti-virus and malware programs, avoid suspicious interactions, freeze your credit accounts and monitor your credit, use multi-factor verification, and respond to any bona fide alerts.  Also encrypt and back-up sensitive data to protect it from access.  

Final step:  never divulge personal information without first verifying the contact independently.  For a text or email, check your account on your smartphone app or website browser – but don’t use the link in the message!  If the message is a text, you can often delete and report it as junk on your phone. 

We updated some examples of recent scams – any sound familiar? – to help you calm any emotional reaction before responding:

  • Do you really think you won a lottery you never entered?  There is the old joke that says, “what, you didn’t buy a ticket?”
  • If you don’t have a credit card with Wells Fargo, why are they calling you about a BestBuy purchase?  This may make you curious and want call only to hear the recording asking you to input your debit card number – don’t provide it!  Banks and brokers will not ask you to divulge your information.  Also, you can verify the bank numbers on line. 
  • If Amazon really thinks there is fraud, why does the person answering the call say “Thanks for calling Amazon” when the call came from them?  Why do they know nothing about your account information?  If there was a fraud, they would be telling you about the transaction instead of asking for all your account details.  Check your account on your app or the Amazon website. 
  • Do you think you won a gift from Ace Hardware, Walmart or another place where you haven’t been shopping?  Check the e-mail address or text number – if it’s not from the company, then someone is trying to gain access to your information.  
  • Should I respond to this silly personality quiz on Facebook?  No, it might be phishing for personal details for identity theft.
  • Is this great job offer for me?  If you didn’t apply, why is this company reaching out to you?  Again, check the email address or phone number independently. 
  • Do you actually think you are the one randomly chosen to receive an inheritance from someone in another country who supposedly has no heirs?  The estate mentioned is often from a country you may never have visited, and the estate is an enormous amount.  As your grandmother may have told you, “if it sounds too good to be true, it is!”
  • Does your phone or computer really have this terrible virus?  How did they detect this?  Run your own antivirus scan. 
  • If you did not buy a MacBook or AirPods and no one stole your credit card, why is someone calling from the Netherlands to claim a purchase was made on your account?  Often you can tell that the callers are not from the companies they claim. 
  • Why did you receive a Docusign message or a PDF attached to an email for your salary or benefits?  And why did it come from someone’s personal email?  Clicking on the link could allow them to install malware and gain access to your financial information – don’t!
  • It may look like a Microsoft message or some other legit message, but why do you suddenly need to update your account password or sign for a matter you don’t recognize?  Check the source of the message –official-looking messages can come from dubious senders, often outside the US.  Be wary of e-mails from random accounts rather than the actual vendor.  
  • Why is someone calling about a Zelle transfer? When you listen, the case number looks suspiciously like a phone number that could allow then to gain access to your bank account. 
  • Why is the border patrol in Texas calling you and claiming that they opened your mail and need to put a hold on your social security number?  What does it even mean to “put a hold on your social security number” and how does that even relate to contraband?
  • Why is UPS or FedEx claiming the item is undeliverable because your address is wrong?  If you did place an order, you would have confirmed the address.  Check the source of the text or email and independently verify any purchases on the vendor site. 
  • You may be worried about crime in your city, but is that robo-caller really providing funds to support police? Most police departments do not solicit funds by this way so hang up and verify any charity before donating.
  • Why are they offering tax debt relief when you are current on your taxes?  Was there some new IRS program you never heard of?  Check with us before responding. 

Summary

If something seems off, it probably is.  Try to avoid a panicked reaction when you receive a notice of an unauthorized payment, an overdue bill, a payment authorization you didn’t expect or a claim that you violated customs.  And don’t click on any link!  Go to the vendor’s phone app or website to access via a browser you trust to check before responding.  The link in a text or e-mail may appear okay but close examination may reveal some flaw.  

And here is good reminder from the IRS:

  • The IRS will never contact a taxpayer using social media or text message. The first contact from the IRS usually comes in the mail. Taxpayers who are unsure whether they owe money to the IRS can view their tax account information on IRS.gov.

The FTC suggests that you can send a screenshot to 7726 (SPAM).  This may help your wireless provider identify and block similar messages in the future.  You can also report it to the FTC at ReportFraud.ftc.gov.  And if you do become a victim, this New York Times article How to Avoid Online Scams and What to Do if You Become a Victim had information with links on what to do if you are scammed.  

Stay safe and let me know if you have any questions or comments! 

Steven

Brace for the Holidays! Have a plan

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As Halloween passes, we know that the season of over-buying and over-eating is approaching, so it’s time to prepare.  You want to enjoy being with friends and family without having the hangover of overspending, or worse, going into debt to finance all the fun. 

Make the gift giving fit with your cash management

Over-buying does not make you happier and usually makes the recipient uncomfortable.  Also, over-spending is likely to make achieving your long-term goals more difficult, which can add to the depression some feel at this time of year.

For gifts, “it’s the thought that counts” rings true.  Most recipients appreciate being remembered for who they are and what they do.  Think back to what you enjoyed most in past holidays and let that guide you.  This can help you stick to your values as you think through the entire process and devise your holiday shopping plan.  The time spent together may be far more important and rewarding than unnecessary giving.

Have a plan

Technology and social media can make shopping easier, but they also make it easier to overspend and end up with credit card debt from funding your gift giving.  

Part of the reason is that many such purchases are spontaneous.  People often regret these unplanned purchases.  Over 70% of people in one survey exceeded their budget and over half bought items not on their list.  This can make the new year bleak (More than 3 in 4 Americans are stressed about going into debt over the holidays — and technology’s not helping ) Counter this by creating a realistic budget, lookout for sales, review your budget to make sure you are on track. 

Budget – If you determine what you can reasonably spend and allocate that to people for whom you want to buy gifts, or give holiday tips, then you have a spending plan that should get you through.  When devising your plan, go back to your financial goals to remind yourself why staying on track is so important.  Include time for present wrapping to avoid time pressure that encourages splurge buying.  Also, you may want to have small gifts on hand for unexpected guests.  You can use budget apps, such as NerdWallet, to create a budget.  When you do, stick to it! 

If the people for whom you are shopping have wish lists, follow them for ideas.  And leave items in your shopping cart overnight to take a second look and avoid regretting a splurge purchase.  Ask “does the person really want or need this?,” especially if you are shopping for yourself!  (It may be wise to avoid, or at least substantially limit, any buying for yourself.) 

Be Wary of Black Friday, Cyber Monday and other retailer tricks

If you do your homework, you can determine if waiting in line or buying on line will be best.  As stated above, create a budget and stick to it.   

Be on the lookout for retailer other tricks like flash sales, loyalty cards, incentives to return for more purchases, misleading refund policies.  Similarly, procrastinating can lead to splurge buying ruled by emotions such as the need to please everyone and get the shopping done.

Avoid scams

With the pressure of the holidays to address all the gift giving, parties and thank yous, stay vigilant for scams.  These can come in the form of bogus IRS and social security calls, credit card offers, computer software deals and fake invoices.  There are many phishing sites you can use to check out whether the offers are legit. 

Review our Holiday Tipping Guide

As for tipping, see our post Guidelines for Holiday Tips and Gift.

Remember, if you’re unable to tip or give a gift, a thoughtful thank you note will acknowledge those people who are important to you.  You can even make a donation in their name. 

Brace for over-eating and possibly even depression

This blog is does not profess to have any expertise in psychology.  Nonetheless, we have all heard how holidays can be disappointing if not depressing from some.  The Hallmark gatherings promised on TV or social media rarely happen in real life. 

If the holidays are depressing, consider volunteering somewhere, such as a soup kitchen, or getting out for some serious exercise.  Both can lift your mood as well as either help others or improve your health.  Allow time to rest and recover!  And try a warm drink, tea not bourbon, or a warm bath. 

Take care of yourself – it’s hard to help anyone else if you are not in good shape yourself.  But if you are really experiencing holiday depression, speaking to people can help, be that family, friends or professionals.

We wish you all the best for financially sound, and fun, holidays!  And let us know if we can help you plan.

Holiday Planning Series with the Squash Brothers, part III, debt management

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Watch our Holiday Planning Series, Part II, as Steven and the Squash Brothers discuss debt management so you do not overspend and end up with credit card debt you can’t pay off.

Thanks for watching our series!

Holiday Planning Series with the Squash Brothers, part II, cash management

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Watch our Holiday Planning Series, Part II, as Steven and the Squash Brothers discuss cash flow planning so you have more to spend (or to save!).

Next time, debt management.

How to stay safe after the Equifax data breach

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(as also appeared online at IRIS.xyz)

Equifax disclosed last week that the personal financial information of up to 143 million users had been exposed in a massive hack last July. This represents roughly two-thirds of all credit card holders, so you may be affected.

The delay in disclosing is troubling, and the hack raises questions about oversight of the credit bureaus and even about the impact on their management. We can see the impact on investors: the Equifax share price has dropped over 20%

While we can discuss these issues and more, the priority is shoring up your personal credit.

Impact

Was your data taken? There are links from Equifax, Norton and others where you can attempt to determine the impact on you personally. However, these sites seem to default to “you may be affected,” even if you put in bogus information.

The good news is that Equifax has responded to consumer pressure to make certain services free.

Act now

You will want to act as soon as possible to keep your financial information safe.

“There are so many entities who need to check your credit: when you’re renting an apartment, getting insurance, a new cell phone, utilities,” Liz Weston, a financial planner and columnist at NerdWallet, told BuzzFeed News. “But at this point the breach is so great” that taking measures to safeguard your identity is worth it. She recommends instituting credit freezes.

Equifax free service – sign up on line for the complimentary service being provided by Equifax, which provides the following:

  • three-bureau credit file monitoring with alerts,
  • credit report lock,
  • scanning of suspicious sites for use of your social security number,
  • Equifax credit reporting, and
  • $1 million identity theft insurance covering certain out-of-pocket expenses.

Monitor your cards – review your monthly credit card, bank and loan statements for suspicious activity. You have a right to free credit reports so obtain them and review for unauthorized activity.

Also, watch for unexpected calls or mail, such as debt collectors or people posing as IRS agents, because these may be signs that your information may be in the hands of thieves.

Credit freeze – request a freeze on your credit from all three agencies: Equifax, TransUnion, and Experian. Equifax will not charge you but the others will.

Requesting a credit freeze prevents thieves from using your identity to get loans or credit cards in your name, even if your personal information was compromised by the hack. You essentially pay to bar each of three credit reporting agencies — Equifax, TransUnion, and Experian — from providing a credit report without both your explicit permission and a personal identification number (PIN) that temporarily lifts the freeze. (Freezes do not affect financial institutions or companies you have an existing relationship with, only new ones.)

Make sure to place the freeze with all three bureaus and to keep your PINs for unlocking the freezes in a safe place.

“A credit freeze with only one bureau is incomplete protection,” Mike Litt, the consumer program advocate at the US Public Interest Research Group, a consumer group, said. Consumer experts recommended getting a freeze with all three agencies.

There are companies such as LifeLock that provide bundled services. If cost is not an object, that may be the best course of action. Here is the Lifelock response on Equifax.

Fraud alert – if you are certain that your information has been taken, place alert all three credit bureau websites. You can access the TransUnion site here. Some protection is free, but their premium package costs $9.95

If you are the subject of identity theft, there are many resources now that help you report and recover. The Federal Trade Commission website can help devise a recovery plan to implement.

PINs and passwords – the passwords and PINs you use could be the next issue. You may want to change what you use now and update annually, if not more often.

Updates – Equifax continues to provide updates on the status of the hack and their response.

And news sites continue to report on the hack – see this NY Times article.

Summary

There are many steps to take, and the information taken may not be used for some time. So, you will want to take some if not all the steps outlined above. If you have trouble doing so, or if you have questions, let us know.

And for more reading, the Better Business Bureau is one resource for tips on avoiding scams. And, the FTC is a good resource for identity theft.

Good luck and stay safe!