(08/23/10) Tech Talk: Beware the Phishing Scam
This time of year, lots of folks go fishing.  Unfortunately, others go Phishing (and I'm not referring to the band).  Phishing is an email scam where an email is sent to the unsuspecting person requesting personal information.  It works more than it should because Phishers typically use a trusted name in their message.  We periodically see this type of scam using bank and credit card company names. Recently, we've seen an influx of these emails using a trusted brand - Amazon.com.  It's easy to get duped since Amazon does send legitimate messages.  Hopefully, these tips will help you spot and avoid the Phishing scams...

Check the suspicious email against a legitimate one:

• Are the logos the same? The Amazon scam adds a tag line
• Email address formats the same? Do-Not-Reply@amazon.com vs. Ship-confirm@amazon.com
• Same language? "Help Pages" vs. "online Help Department"

Check out the links - WITHOUT clicking through:

• Hover your cursor over any embedded link in the email
• What URL appears?  Is it the supposed senders (i.e., amazon.com) or is it something odd (i.e., sonda.co.kr)?

And remember, when in doubt, THROW IT OUT.

TOP

MarketWatch on refinance scams advises: Join a CU
CHICAGO (8/23/10)--A MarketWatch article warning consumers about loan-modification and auto refinance scams told readers having trouble with their auto loans to "Join a credit union."

Thursday's Consumer Confidential column by Jennifer Waters described an Illinois man who got scammed by an auto finance company claiming it could reduce his $700 a month car payment to about $400 a month. His initial contacts with the company were easy, but after he paid a couple of fees, the company essentially disappeared. He took the matter to the Better Business Bureau, which helped him get an apology and his money back. The company has gone into receivership and is no longer doing business, said the article. The bureau is warning consumers to be picky and do the legwork before signing up for a company that claims it can get them out of a bad deal, the article said. "Instead, try a credit union, a group like CARS, the Consumer Federation of America or the National Foundation for Credit Counseling," said Waters. She offered several tips, including joining a credit union. "For the $5 or so membership fee, you can have your credit union review the loan and offer advice," she wrote. Read the complete article at http://www.marketwatch.com/story/dont-get-taken-by-car-loan-scams-2010-08-19.

TOP

Don’t hire a “Bernie” as investment adviser
NEW YORK (7/19/10)--Bernard "Bernie" Madoff created a scandal in 2008 when he bilked investors out of their life savings. He also provided a reminder why it's important to vet the person who's making decisions--or holding your hand--when it comes to your investments (Dailyfinance.com July 10).
If you're in the market for a broker or adviser, here's how to make sure you won't get scammed:

• Make the broker vs. adviser decision. Brokers are paid to do what you tell them. Generally you have to give the OK before they buy and sell your investments. Investment advisers are paid to give you advice and must be registered with either the Securities Exchange Commission or their state's securities agency. Typically, you sign a contract with an investment adviser giving him or her authority to manage your funds without you weighing in on every decision
• Do your homework. Research broker backgrounds using the free BrokerCheck tool on the Financial Investor Regulatory Authority (FINRA) Web site. FINRA provides information about licensing, how long a broker has been in business, and any complaints filed against the business. For a financial adviser, whether a firm or an individual, use the Security and Exchange Commission's (SEC) Investment Adviser Public Disclosure site. It provides background information and disclosures about regulation violations on the ADV form. You'll need to ask if your adviser received income from certain funds, as this is not yet publicly available. This is important because you'll want to know if your adviser is putting your money into investments that may boost his or her bottom line too.
• Select two to three companies to meet with. Take the time to interview potential brokers and advisers--you are trusting them with your financial future, after all. Ask questions about services and their investment philosophy. Be sure you understand how they charge and whether fees are based on commission or a percentage of assets under their management. Request references and check them.
• Keep your cash. Many of Madoff's victims gave him their money directly instead of putting it in a third-party financial institution or with an independent broker-dealer. Keep your investment funds in a separate account so you'll get statements from the financial institution or brokerage and your investment adviser. Plan to compare them and look for any discrepancies.

TOP

Tired of Credit-Card “Gotcha’s?”
NEW YORK (06/07/10)—CNNMoney.com. Mired in debt from your plastic habit? Maybe you can't even qualify for a credit card. More and more folks are turning to alternative credit cards. In a recent op-ed two Harvard doctoral students talked about a study they conducted between investor-owned banks and customer-owned credit unions. They found that credit cards from credit unions were less likely to charge fees and penalties that big banks do. And when fees are involved, those fees are less. Credit union cards actually offer lower annual fees and longer grace periods than regular cards. To read the full story, visit: http://money.cnn.com/2010/06/07/pf/saving/new_types_of_credit_cards/

TOP

Facebook’s Use of Personal Data Concerns FTC, Consumers
NEW YORK (5/24/10)--The Federal Trade Commission (FTC) is examining how social networks like Facebook use personal data from user profiles. The FTC has received complaints from privacy groups concerned about how Facebook displays user information (Online.WSJ.com May 19).
Users of the popular social media website are becoming increasingly concerned about personal information security thanks to recent developments, including privacy bugs, changes to profile privacy settings and the increased connectivity between Facebook profiles and other sites across the Web (CNN.com May 13).
Consumers with Facebook profiles can prevent their personal information from getting into the wrong hands. Here are five ideas from ConsumerReports.org to help Facebook users protect their privacy:

• Learn privacy controls. Visit the Facebook "guide to privacy" page to learn the different settings and how to alter them for your profile. You'll also find information about recent privacy feature changes and updates.
• Block search engines. Uncheck the public search option located in your Facebook profile privacy settings. This prevents potential criminals from using Web search engines to find your profile.
• Use a unique password. A password unique to your Facebook profile, containing at least eight characters, will help protect your personal information. A strong password combines symbols and numbers between upper- and lower-case letters of a word. For example a variation of a password with the word "tree": t1R9e8e!
• Hide your birth date. Prevent those you don't know from learning your birthday and birth year. Thieves can use this to gather and misuse sensitive information, including financial details.

TOP