Protecting:Money

Identity Theft
A name and a social security number is all an identity thief needs to do serious damage such as empty your bank account or open credit in your name. Victims of identity theft endure miserable experiences trying to fix damage to their finances and credit.

Identity theft occurs when one person assumes the identity of another for financial gain. There are a number of ways that identity can be compromised - it's not all about a social security number. Sometimes your name, date of birth, address, phone numbers, and email addresses are all a criminal needs to use a false identity.

The consequences of identity theft couldn't be more serious. Medical treatments and insurance benefits can be drained or new credit accounts can be established all in the names of victims (innocent people like you and me) who are forced to deal with the criminal, financial, and emotional ramifications of these crimes. Victims often have little recourse and no idea how to reclaim their lives.

The Federal Trade Commission (FTC) reports that credit card fraud is the most common form of identity theft, followed by document fraud, utilities fraud, and employment fraud. Credit card fraud is a pain and requires paperwork. But banks generally remove the fraudulent transactions from your account.

Debit card fraud is on the rise. Keep your pin number private. It can be difficult to prove fraud when someone if cleaning out your accounts with your pin number.

Learn about identity theft on the Federal Trade Commission website:

http://www.ftc.gov/idtheft/consumers/about-identity-theft.html

'''About Identity Theft - Deter. Detect. Defend. Avoid ID Theft'''

To minimize your risk of exposure, first and foremost, be protective of your social security number. Never carry your social security card around with you. Keep it safe in a locked drawer or filing cabinet. Understanding how identity theft happens will help minimize your risk of exposure. Dangers are prevalent in low and high tech forms, from losing a wallet, discarding personal information in garbage cans, falling for phone & email scams, to corporate data breach. Use this link to understand how identity theft happens.

http://idtheft.about.com/od/identitytheft101/a/HowItHappens.htm

A simple “how to” guide to protect your identity:

Guard your social security number, and your PIN numbers.

Never share your personal information online.

Mail payments from a secure mailbox.

Remove your name from marketing lists and reduce your junk mail (mail theft is the leading cause of identity theft).

Review your credit report annually.

Use a shredder.

Do not give your personal identification information to anyone unless you are certain it is safe.

Monitor your financial statements.

Keep your account numbers and customer service phone numbers in a safe place in case your credit cards are lost or stolen.

Stop pre-approved credit offers as these offers can be stolen before you receive them. Call 888-567-8688 to have your name removed from credit bureau marketing lists.

For guidance, go to the following websites:

http://www.privacy.ca.gov

Department of Consumer Affairs, Office of Privacy Protection

http://www.privacyrights.org

The Privacy Rights Clearinghouse

http://www.ftc.gov

The Federal Trade Commission

http://www.idtheft.org has the following advice for victims of identity theft:

1.	Place a fraud alert on your credit report

Contact the three major credit-reporting agencies — TransUnion, Equifax and Experian — to place a fraud alert on your file, which should prevent more false accounts from being opened in your name. Here’s their contact info:

TransUnion 1-800-680-7289

http://www.transunion.com

Equifax 1-800-525-6285

http://www.equifax.com

Experian 1-888-397-3742

http://www.experian.com

2.	Close bogus accounts

Dispute credit cards or bank accounts that were illegally opened in your name by notifying both the credit-reporting agency that lists the false information and the fraud department at the related bank or creditor.

3.	Contact government agencies for help:

Social Security Administration – Office of the Inspector

http://www.ssa.gov/oig/index.html

Federal Bureau of Investigation

http://www.fbi.gov/homepage.htm

Federal Trade Commission

http://www.consumer.gov

Spam, Fraud & Scams
Spam can be used to spread computer viruses, trojan horses (which give control of your computer to another computer) or other malicious software. The objective may be identity theft, or phishing (acquiring sensitive information). Spammers use the information they acquire to commit mail fraud, wire fraud, e-mail fraud, aggravated identity theft, and money laundering.

Phishing is a way of attempting to acquire sensitive information such as usernames, passwords and credit card details by masquerading as a trust-worthy entity in an electronic communication.

Spyware is a type of malware that can be installed on computers, which collects small pieces of information about users without their knowledge. The presence of spyware is typically hidden from the user. Typically, spyware is secretly installed on the user's personal computer. Sometimes, however, spywares are installed by the owner of a shared, corporate, or public computer on purpose in order to secretly monitor users.

There are a number of good sites to find out about spam, fraud, scams, phishing:

http://www.scambusters.org/

http://www.fbi.gov/scams-safety/fraud

http://www.consumerfraudreporting.org/

On the consumerfraudreporting.org site you will find:

•	What to do if you think you have already been the victim of fraud or identity theft.

•	State and Local Consumer Protection Agencies - If you are looking for the best local consumer protection agency to report a scam, seek advice, to obtain assistance in resolving a dispute, this list has the contact information.

•	Local FBI office listings to find the closest FBI office to report a crime or scam.

•	Recommendations about which products work best for anti-spyware, anti-adware, ant-virus, etc. and links to discounted prices.

•	Guidance about how to protect yourself.

•	Links, phone numbers and sign up information for the National Do-Not-Call List and the Credit Card Offers Opt-Out List.

The official site of our US government is another site to visit to get information on consumer protection and fraud.

http://www.usa.gov home > citizens >US Government Information > consumer protection > consumer frauds and scams

Insurance
Events such a severe illness, car accidents, or fire can cause physical, emotional and financial havoc. Having the right kind of insurance can protect you from the financial consequences associated with unexpected challenges and disasters.

By paying a monthly fee to a company that insurances you against loss, you may receive reimbursement when your claim is approved. Losses can be expensive and cost more money than you may be able to come up with on your own. Talk to someone you trust to determine the proper amount of coverage or limits of liability. Having too much insurance isn’t a bad thing except that it’s expensive.

Health Insurance

Health insurance is really not an option; everyone needs insurance even when they are young and healthy. Injuries sustained in an unexpected car accident could end up costing in the six figures. You may be able to get health insurance coverage through your parents or guardians, through school, or through your employer You may have to pay a portion of the insurance premium (or monthly charge for coverage), but in most cases you’ll pay far less than you would if you had to buy a policy on your own. If you are not able to get insurance through work or through school and cannot afford a comprehensive policy on your own you may be able to get coverage through Medicaid or a state health insurance program (if you qualify for these programs). Another option is to purchase catastrophic medical insurance. Catastrophic medical insurance does not cover routine medical costs, like prescriptions and doctors’ visits, but it does cover major medical events, like hospital stays. The deductibles (or the amount you pay out-of-pocket before insurance reimburses you) are usually high, but the premiums or monthly charges are lower than a comprehensive plan.

Disability Insurance

If you are employed, it is a good idea to have disability insurance, which replaces a portion of your income if you are unable to work. (While you may not need this while you are in school, it is a good idea to understand what disability insurance is when you start working.) You should be aware of policies that are available through your employer and through government agencies. There are two types of disability policies: short-term, which provides coverage for a limited period of time; and long-term, which provides benefits until retirement age. Long-term insurance is the most important insurance to have. If you are only out of work for a few weeks, you should be able to pay for your expenses with savings. Check to see what coverage you have through work before purchasing a policy on your own.

Life Insurance

Like disability insurance, life insurance is something to think about as you get older. If you have a spouse, child, parent, or anyone else who relies on your support, this is something you should consider having. There are two basic types of life insurance: term and cash-value. Term insurance is pure life insurance. You pay the premiums for a specific period of time, and the policy will pay out if you die. With cash-value life insurance, part of your premium goes toward the policy and part of it goes into a savings plan that accumulates value. You can borrow against the money in the savings plan or cancel the plan and get the cash value back. Generally, the premiums are higher for cash-value life insurance.

Auto Insurance

Auto insurance is not optional; if you drive you must have auto insurance. Younger drivers that are recently licensed will find that they have higher car insurance costs due to their short driving history and higher accident rate. However, with good grades, some insurance companies will provide a “good student discount” on policies that include single students younger than 25.

What is the correct amount of auto insurance coverage? Find out the minimum state auto insurance requirements here:

http://personalinsure.about.com/cs/vehicleratings/a/blautominimum.htm

Generally, the law requires that drivers have at liability auto insurance, which covers your legal costs (up to a limit) if you injure a person or damage property with your car. Minimum required coverage may not been the best option; you may want full coverage insurance. (This will likely be required by your lender if you have a car loan.) In addition to liability coverage, full coverage typically includes medical expenses coverage, uninsured motorist protection coverage, collision coverage (which pays for repair costs or replacement due to accidents), and comprehensive coverage (which covers repairs costs and replacement due to damage resulting from other causes, such as theft or fire).

Here are a few sites to shop for auto insurance:

http://www.progressive.com/

http://www.esurance.com

http://www.geico.com/

Renters Insurance

Renters insurance covers personal property loss and liability for renters. It can protect you and your possessions from loss due to disasters such as: fire, theft, water damage, or even claims against you (if, for example, someone blames you for an injury or loss of property). This insurance is relatively inexpensive and may be worth the expense. Never assume that your landlord’s policy will cover your losses. Homeowners Insurance

If there is a mortgage on your property, your lender will require homeowners insurance. Even without a mortgage on your home, homeowners insurance is a must. A home is often the biggest asset on a personal balance sheet. Without insurance coverage, a disaster that destroys this asset could lead to financial ruin. Homeowners insurance generally provides coverage for fire damage, theft, and some liability. Regular homeowners’ insurance policies do not cover losses resulting from earthquakes or floods. If you are in an area where either of these is a concern, you may want to purchase a supplemental policy for earthquake or flood insurance. Lenders require flood insurance if your home is in a flood zone; earthquake policies are optional.

An umbrella policy can be purchased to augment the liability coverage over and above standard policies. This is something to consider as you accumulate assets. Typically, an umbrella policy is sold in increments of one million dollars. The term "umbrella" is used because it covers liability claims from all policies underneath it, such as auto insurance and homeowners’ insurance policies. If your wallet can handle the cost of the premiums, and your net worth would suffer from a six figure claim or loss, an umbrella policy is worth looking into.

To shop for insurance:

http://www.bankrate.com see the section on insurance

http://www.progressive.com get quotes and compare rates

http://www.insurancequotes.com quick quotes from known companies