Identity thieves aren't making as much money as they did a few years ago, say consultants at Javelin Security and Research in Pleasanton, Calif.
Thievery is up -nearly 10 million Americans lost $48 billion to identity thieves last year. Online merchants lost maybe $21 billion more in potential sales when scam-shy consumers sat on their wallets, Javelin calculates.
However, thieves aren't making money like they used to, researchers found. That's partly because potential victims are getting savvier about guarding information online. But there's a recession on too and those of us who aren't spending anything until it's over are presenting potential thieves with fewer targets of opportunity.
There is at least one exception to that observation, other consultants say, and it is in a wedding aisle near you.
Nothing this year says I love you so much as a good cross-cut paper shredder, say execurives at Kroll Fraud Solutions. The New York financial services industry security consultant is hitting publicity circuits this week to warn that peak wedding season is also a prime time for identity theft.
Gift registries, online wedding planning services, honeymoon sweepstakes and giveaways and the like are all venues that scam artists potentially can hack or set up to pry important personal information from where we stash it, Kroll warns. Cell phones, laptops and similar personal gear that we may be careful about during a whirl of wedding and honeymoon preparations also are identity gold mines.
All are easy to overlook when there are seemingly more immediate potential scams to worry about. But to be safe as possible, be as stingy with personal and financial information as you can, Kroll recommends. And when you must provide it - to Social Security and the department of motor vehicles if you are changing names, utility companies if you are moving to a new home, and the IRS - keep good track of everything and store originals, such as new Social Security cards, someplace safe.
Thursday, June 11, 2009
Tuesday, June 9, 2009
Paying more car insurance to drive fewer miles
My car insurance is going up $10 for the next six months.
It's not a bad deal. We're still only paying $370 to cover two claims-free, suburban-driven compacts. I don't know what to think of what we're getting for the money. We've been driving a lot less on our now tighter budget. Mrs. Ktnomics is using her 70 mpg Vespa more when the weather is nice.
The insurance company said, when it told us the new premium, that our bail bond coverage is higher, we get more money to replacement income if we need to take time off work to testify in court, and it will pay higher first-aid costs if someone is injured in our accident. I've never used any of those things in the 47 years I've been licensed.
Turns out that a lot of us are paying more to drive less, though Insurance Information Institute statistics show the amounts vary widely. So far this year, State Farm, the nation's largest auto insurer, has increased rates in 25 states and trimmed them in 12 for an overall average increase of 1.2 percent. And the Missouri and Kansas hikes, 3.8 percent and 2.2 percent respectively, are mild compared to what some competitors are posting, said spokesperson Tamara O'Connor in Kansas City.
Insurance companies say claims experience drives the changes. Vehicle repair costs, medical bills, lawsuits and everything else that my now $370 helps cover are creeping higher. Others say the recession is a force too. Insurers reportedly worry they'll get burned by pent-up claims demand as the economy improves.
Some may worry they'll be scorched by consumers too. We're getting pickier about what we buy. New on-line competitors are grabbing market share from traditional agents. And one group of industry watchers, at Marketscout.com, suggests that some traditional agents' competitive elbows are getting sharper too.
Smokey Robinson and the Miracles offered some of the best advice for consumers 40 years ago. Who knew?
It's not a bad deal. We're still only paying $370 to cover two claims-free, suburban-driven compacts. I don't know what to think of what we're getting for the money. We've been driving a lot less on our now tighter budget. Mrs. Ktnomics is using her 70 mpg Vespa more when the weather is nice.
The insurance company said, when it told us the new premium, that our bail bond coverage is higher, we get more money to replacement income if we need to take time off work to testify in court, and it will pay higher first-aid costs if someone is injured in our accident. I've never used any of those things in the 47 years I've been licensed.
Turns out that a lot of us are paying more to drive less, though Insurance Information Institute statistics show the amounts vary widely. So far this year, State Farm, the nation's largest auto insurer, has increased rates in 25 states and trimmed them in 12 for an overall average increase of 1.2 percent. And the Missouri and Kansas hikes, 3.8 percent and 2.2 percent respectively, are mild compared to what some competitors are posting, said spokesperson Tamara O'Connor in Kansas City.
Insurance companies say claims experience drives the changes. Vehicle repair costs, medical bills, lawsuits and everything else that my now $370 helps cover are creeping higher. Others say the recession is a force too. Insurers reportedly worry they'll get burned by pent-up claims demand as the economy improves.
Some may worry they'll be scorched by consumers too. We're getting pickier about what we buy. New on-line competitors are grabbing market share from traditional agents. And one group of industry watchers, at Marketscout.com, suggests that some traditional agents' competitive elbows are getting sharper too.
Smokey Robinson and the Miracles offered some of the best advice for consumers 40 years ago. Who knew?
Sunday, June 7, 2009
When should I save and when should I spend?
Kmart has a heck of a deal on work pants right now, which provoked some debate around the ktnomics table on spending versus saving. That's a decision made differently when money is tight.
On the one hand, I could really use the pants. They're cheaper than blue jeans; they're pretty useful for some of the part time work I've been picking up, and the 10-year-old pair that I'd replace are two inches too big around the waist and looking ratty. Plus if the inflation hawks are right, this may be the best deal I'll get for a long time.
On the other hand, I could use the $16.99 too. I may need it more for something else later. I can make the old ones last longer, and an adjustable web belt from Mickey's Surplus will take care of that waistline adjustment. Plus, if the inflation hawks are right, that's already almost seven gallons of gas.
Some commentators say dilemmas like this help prolong the country's economic problems. They believe that, laudable as our new found commitment to thrift might be, somebody needs to spend something to get money flowing again. That's the whole point of economic stimulus.
Could be. But here on the home front, having a cash reserve becomes even more reassuring when income is unpredictable. Six months or more - to be tapped only in spurting-blood priority emergencies is ideal. But even having just a $500 stash will get you a long way through most jams.
The real question may be what will happen when we feel comfortable about spending again? There's a lot of money out there not circulating much. If prices rise because we try to spend it all at once, will we still be saving because we can't afford stuff? Maybe Yogi Berra would know.
On the one hand, I could really use the pants. They're cheaper than blue jeans; they're pretty useful for some of the part time work I've been picking up, and the 10-year-old pair that I'd replace are two inches too big around the waist and looking ratty. Plus if the inflation hawks are right, this may be the best deal I'll get for a long time.
On the other hand, I could use the $16.99 too. I may need it more for something else later. I can make the old ones last longer, and an adjustable web belt from Mickey's Surplus will take care of that waistline adjustment. Plus, if the inflation hawks are right, that's already almost seven gallons of gas.
Some commentators say dilemmas like this help prolong the country's economic problems. They believe that, laudable as our new found commitment to thrift might be, somebody needs to spend something to get money flowing again. That's the whole point of economic stimulus.
Could be. But here on the home front, having a cash reserve becomes even more reassuring when income is unpredictable. Six months or more - to be tapped only in spurting-blood priority emergencies is ideal. But even having just a $500 stash will get you a long way through most jams.
The real question may be what will happen when we feel comfortable about spending again? There's a lot of money out there not circulating much. If prices rise because we try to spend it all at once, will we still be saving because we can't afford stuff? Maybe Yogi Berra would know.
Friday, June 5, 2009
GM's bankruptcy makes your retirement harder too
Financial planners like to use the image of a three-legged stool when they talk about retirement planning.
The metaphor and idea behind it are simple. To live comfortably in retirement, most of us need income from three different sources: Social Security, our employer's pension plan, if there is one, and additional money that we should be saving or investing.
Now, wreckage from Detroit's imploding automakers is knocking some of the legs out from under that stool, according to contributors who've taken an in-depth look for the Financial Times of London. You don't have to be in the auto industry, or even own a Chevy, to feel the tremors.
Former U.S. Labor Secretary Robert Reich draws some strong parallels between what's happening with GM and in the rest of the economy. And you don't have to agree with his politics to wonder, as he does, what taxpayers may be be buying with our $60 billion investment.
But I think an unsigned editorial raises a more interesting idea - the U.S. has no real retirement-security plan because we've relied on our employers' pension plans to carry that load. Even Poland has a surer plan, reports Forbes.
Mending the mess is possible, but will take time and some presumably unpopular tax changes, say commentators such as Thomas Mackell Jr. at Huffingtonpost.com. We each have our own heavy lifting to do as well.
If you have time, and a job, you also have resources to deal with the most challenging problems, says the Certified Financial Planning Board of Standards. If not, there is a fourth leg under the stool too. Good luck with the job hunt.
The metaphor and idea behind it are simple. To live comfortably in retirement, most of us need income from three different sources: Social Security, our employer's pension plan, if there is one, and additional money that we should be saving or investing.
Now, wreckage from Detroit's imploding automakers is knocking some of the legs out from under that stool, according to contributors who've taken an in-depth look for the Financial Times of London. You don't have to be in the auto industry, or even own a Chevy, to feel the tremors.
Former U.S. Labor Secretary Robert Reich draws some strong parallels between what's happening with GM and in the rest of the economy. And you don't have to agree with his politics to wonder, as he does, what taxpayers may be be buying with our $60 billion investment.
But I think an unsigned editorial raises a more interesting idea - the U.S. has no real retirement-security plan because we've relied on our employers' pension plans to carry that load. Even Poland has a surer plan, reports Forbes.
Mending the mess is possible, but will take time and some presumably unpopular tax changes, say commentators such as Thomas Mackell Jr. at Huffingtonpost.com. We each have our own heavy lifting to do as well.
If you have time, and a job, you also have resources to deal with the most challenging problems, says the Certified Financial Planning Board of Standards. If not, there is a fourth leg under the stool too. Good luck with the job hunt.
Thursday, June 4, 2009
Got a pulse? Be a tax professional. That must change, IRS chief declares
In Missouri, like many places, it's tougher to become a tattoo artist than a tax preparer.
California and Oregon require tax preparers to meet some state-specified education requirements before taking on clients, but most everywhere else, anyone with a pulse can hang out a shingle.
IRS Commissioner Doug Shulman pledged Thursday to try to change that and come up with ways that our individual tax preparers can help improve the accuracy and quality of the returns we file each year.
Shulman wants us to help too. He's planning a still-to-be scheduled series of meetings across the U.S. in the near future to hear changes we want, along with recommendations from lawyers, accountants, our tax preparers and others in the industry, and get the proposals in hand by the end of the year.
About 80 percent or so of U.S. taxpayers seek professional help during the filing season, Shulman estimated. Tax returns are among the biggest financial transactions Americans engage in every year, he said.
Drowsy oversight hurts both IRS and taxpayers, observers say. No one even knows how many complaints about inept or abusive tax work are filed each year because IRS doesn't count them, one group of Treasury Department investigators found. And inconsistent IRS procedures were allowing even preparers with records of tax abuse to remain in business, a second group reported.
So now, "we want to put everything on the table," Shulman said Thursday. "At this early and critical stage of the process, we need hear from the broades possible range of stakeholders.
One significant stakeholder is applauding the effort.
"For many years, H&R Block has strong supported efforts to upgrade training, professionalism and ethics among all tax preparers," said Richard Breeden, chairman of the world's largest tax service chain.
"We believe that all tax assistance providers should be trained and licensed as necessary to insure that tax returns are prepared accurately every time," Breeden said.
California and Oregon require tax preparers to meet some state-specified education requirements before taking on clients, but most everywhere else, anyone with a pulse can hang out a shingle.
IRS Commissioner Doug Shulman pledged Thursday to try to change that and come up with ways that our individual tax preparers can help improve the accuracy and quality of the returns we file each year.
Shulman wants us to help too. He's planning a still-to-be scheduled series of meetings across the U.S. in the near future to hear changes we want, along with recommendations from lawyers, accountants, our tax preparers and others in the industry, and get the proposals in hand by the end of the year.
About 80 percent or so of U.S. taxpayers seek professional help during the filing season, Shulman estimated. Tax returns are among the biggest financial transactions Americans engage in every year, he said.
Drowsy oversight hurts both IRS and taxpayers, observers say. No one even knows how many complaints about inept or abusive tax work are filed each year because IRS doesn't count them, one group of Treasury Department investigators found. And inconsistent IRS procedures were allowing even preparers with records of tax abuse to remain in business, a second group reported.
So now, "we want to put everything on the table," Shulman said Thursday. "At this early and critical stage of the process, we need hear from the broades possible range of stakeholders.
One significant stakeholder is applauding the effort.
"For many years, H&R Block has strong supported efforts to upgrade training, professionalism and ethics among all tax preparers," said Richard Breeden, chairman of the world's largest tax service chain.
"We believe that all tax assistance providers should be trained and licensed as necessary to insure that tax returns are prepared accurately every time," Breeden said.
Wednesday, June 3, 2009
Set it. Forget it. Regret it.
Target-date mutual funds - those investment choices in your college savings plan and retirement account that automatically readjust to cut risk as time passes - went on the fritz big time in 2008.
Congress already plans next week to look into why that happened. Morningstar, the mutual fund rating organization, is ramping up its coverage of the funds.
Losses averaged 23 percent and in some cases exceeded 41 percent, according to research cited in a new Prudential white paper, Strengthening Target-Date Funds with Guarantees to Enhance Retirement Security, released today. The reason seems simple in hindsight. The 2008 market meltdown hit everything in its path like a Gulf Coast hurricane.
But vulnerability to a bear market is only one potential risk that comes with such funds, writes author Christine Marcks. Target-dates also contain what she called a zero balance risk and a purchasing power risk.
Cutting these risks - that you might run out of money too soon or that your retirement income won't keep up with inflation - may require additional action five to 10 years before reaching your target date, Marcks said.
You may have other choices too. But finding them will take more action on your part. Investments don't run well on autopilot.
Congress already plans next week to look into why that happened. Morningstar, the mutual fund rating organization, is ramping up its coverage of the funds.
Losses averaged 23 percent and in some cases exceeded 41 percent, according to research cited in a new Prudential white paper, Strengthening Target-Date Funds with Guarantees to Enhance Retirement Security, released today. The reason seems simple in hindsight. The 2008 market meltdown hit everything in its path like a Gulf Coast hurricane.
But vulnerability to a bear market is only one potential risk that comes with such funds, writes author Christine Marcks. Target-dates also contain what she called a zero balance risk and a purchasing power risk.
Cutting these risks - that you might run out of money too soon or that your retirement income won't keep up with inflation - may require additional action five to 10 years before reaching your target date, Marcks said.
You may have other choices too. But finding them will take more action on your part. Investments don't run well on autopilot.
Monday, June 1, 2009
Credit crunches and the 20 percent solution...we're lost in the 50's again.
I was a little kid in the 1950s. Hula hoops, Davy Crockett hats and tail fins were cool. Polio scares, Jim Crow laws and duck-and-cover drills weren't.
So, how are we going to like it if or when another 1950's icon, the 20 percent down payment comes back? Beats me, but it would be a big change for many home and car buyers.
What's good is that it is hard to mess up funding something in which the borrower has a 20 percent stake. But coming up with that 20 percent would be tough for many of us, at least until we wrapped our minds around it.
Twenty percent down payments and comparatively rigid loan terms - 30 years for homes and three to four years for autos - were pretty much what you paid to buy those things before the 70's. Ironically, historians say that our parents and grandparents paid those terms because their parents and grandparents went through something like what we are doing now.
Now forecasters see signs that we're headed back to a long patch of conservative lending. Repos and busted loans rattle lenders too. Not everyone is cheering. Canada, which already tried going there to head off a U.S.-scale melt down, found that more than a fourth of its citizens abhor the thought.
U.S. News & World Report contributor Rick Newman predicts the best deals for car buyers may come before the new reality sets in. Maybe so, but save as much as possible and as close to 20 percent as you can. It could cover your credit history's rusty spots as good as new.
So, how are we going to like it if or when another 1950's icon, the 20 percent down payment comes back? Beats me, but it would be a big change for many home and car buyers.
What's good is that it is hard to mess up funding something in which the borrower has a 20 percent stake. But coming up with that 20 percent would be tough for many of us, at least until we wrapped our minds around it.
Twenty percent down payments and comparatively rigid loan terms - 30 years for homes and three to four years for autos - were pretty much what you paid to buy those things before the 70's. Ironically, historians say that our parents and grandparents paid those terms because their parents and grandparents went through something like what we are doing now.
Now forecasters see signs that we're headed back to a long patch of conservative lending. Repos and busted loans rattle lenders too. Not everyone is cheering. Canada, which already tried going there to head off a U.S.-scale melt down, found that more than a fourth of its citizens abhor the thought.
U.S. News & World Report contributor Rick Newman predicts the best deals for car buyers may come before the new reality sets in. Maybe so, but save as much as possible and as close to 20 percent as you can. It could cover your credit history's rusty spots as good as new.
Subscribe to:
Posts (Atom)
