This Week In Your Wallet: Spring Cleaning With ID Theft In Mind
Doing a little spring cleaning? I didn’t get around to it last weekend — but it’s on my list. And research shows it’s on about three-quarters of yours as well. This year, in addition to swapping out the closets and sweeping out the pantry, consider tidying up the following: Your desktops (both real and virtual), your wallet and your online presence. We know clutter can cost you time, money and sanity. But it can cost you your identity, as well.
According to a new survey from Javelin Strategy and Research (sponsored by LifeLock), nearly 8.5 million people who were victims of a data breach in 2014 were also victims of fraud. And while your data is (quite) difficult to protect these days, there are steps you can take that can reduce stolen data from turning into full-blown identity theft.
Start by decluttering your desk. If your desk is in plain sight, and/or there’s a lot of foot traffic around it, then make sure it doesn’t say a lot about you. Even in your own home, you don’t want to leave bills, credit statements and health insurance notices lying around. At the office, decor is one thing, but having your desk look like your high school bulletin board is another. The more data points a identity thief can compile on you, the better a shot he or she has at success. Combine your on-display personal information with a Social Security Number and it makes it that much easier for someone to impersonate you and get credit or a job in your name.
Along the same lines, your virtual desktop can be a huge window of opportunity for identity thieves. Start by updating any files or software that need updating (do this for your phone as well), because these often have new security measures that won’t go into effect until you push the trigger. This goes for your firewalls and anti-virus software, too. Next, delete files and apps you’re no longer using. Not only do they take up precious memory, but they also put you more at risk if they house sensitive information (i.e. PINS, passwords and account numbers).
For more on this, read my blog post on my website here.
Nothing to tease about: Hairdressers still more regulated than tax preparers
Not to be a Debbie Downer during your end-of-tax-season celebrations, but there’s something you should know before putting all those tax-related files away until next year. A study released last week shows problematic (and potentially costly) errors on over 90 percent of tax returns filed by paid preparers. The report, released by National Consumer Law Center (NCLC), Florida Alliance for Consumer Protection (FLACP) and Reinvestment Partners, looked at 29 “mystery shopper” tests and found wrong moves in 27. In one testing scenario, which included a hypothetical single parent: 53 percent of preparers had the tester claim a minor child incorrectly, and 80 percent of preparers didn’t report the scenario’s $800 in side income they were supposed to. The potential cost of these errors in this single-parent scenario alone can range from $37 to $427.
“This is the latest in a long line of mystery shopper tests showing the frequent errors made by paid tax preparers that put consumers at serious financial risk,” says Stephen Brobeck, executive director of the Consumer Federation of America (CFA). “The research underlines the need for effective regulation to ensure adequate education and competency standards for the preparers, and transparent and reasonable pricing for their services.” Most states — as in 46 of them — don’t have any rules or regulations for independent tax preparers. That’s right, only four states (California, Oregon, Maryland and New York) require testing and continuing education for hundreds of thousands of independent paid tax preparers. “Something that we’ve mentioned numerous times — in all 50 states — is that your hairdresser is more heavily regulated than your tax preparer,” says Alice Vickers of Florida Alliance for Consumer Protection.
If you didn’t go to a regulated CPA, lawyer or tax specialist (called an “enrolled agent”) and are now freaking out a bit, don’t. At least, not until it’s warranted. As Gene King, Director of Corporate Communications for H&R Block Inc. points out, this report represents a small sample, making it difficult to speak in generalities about the training of the tax preparers in the study. (For the record: H&R Block has long supported the IRS in its attempt to tighten the leash on regulation.) But if you’re feeling uneasy, then Vickers suggests going to a CPA or a Volunteer Income Tax Assistance (VITA) site (if you qualify) to have someone review your taxes. You might need to amend them. As for next year, King adds, “A few things to look for when selecting a tax professional – 1. Will that tax professional sign the return? 2. Does the tax pro have a PTIN [Preparer Tax Identification Number]? 3. Does the tax professional have experience preparing returns similar to your situation – i.e. small business, investments, rental property, etc.”
Insurers pump the breaks on post-ticket premium spikes
After the initial embarrassment over getting a traffic ticket for speeding, rolling through a stop sign or failing to buckle up fades, the panic sets in over how much your mishap will cost you. You likely worry not just about the cost of your ticket, but also a potential bump in insurance prices. Calm down. According to a new report from InsuranceQuotes.com, just 19% of Americans who received a traffic ticket in the past five years are paying more in premiums because of it. This is down from 31% in 2013. Why the change in direction?
Millennials are often stereotyped as the riskier drivers, but it’s actually Americans between 30-49 years old who are the country’s most ticketed. And while insurers regularly check young drivers’ records every six months, they don’t do the same for older drivers (because checks are costly and there’s supposedly less risk). In other words, insurers know less about you — and those minor tickets and violations — than you think. With that said, you can limit the impact of a traffic ticket by taking a class at traffic safety school.
Have a great week,
Jean
Doing a little spring cleaning? I didn’t get around to it last weekend — but it’s on my list. And research shows it’s on about three-quarters of yours as well. This year, in addition to swapping out the closets and sweeping out the pantry, consider tidying up the following: Your desktops (both real and virtual), your wallet and your online presence. We know clutter can cost you time, money and sanity. But it can cost you your identity, as well.
According to a new survey from Javelin Strategy and Research (sponsored by LifeLock), nearly 8.5 million people who were victims of a data breach in 2014 were also victims of fraud. And while your data is (quite) difficult to protect these days, there are steps you can take that can reduce stolen data from turning into full-blown identity theft.
Start by decluttering your desk. If your desk is in plain sight, and/or there’s a lot of foot traffic around it, then make sure it doesn’t say a lot about you. Even in your own home, you don’t want to leave bills, credit statements and health insurance notices lying around. At the office, decor is one thing, but having your desk look like your high school bulletin board is another. The more data points a identity thief can compile on you, the better a shot he or she has at success. Combine your on-display personal information with a Social Security Number and it makes it that much easier for someone to impersonate you and get credit or a job in your name.
Along the same lines, your virtual desktop can be a huge window of opportunity for identity thieves. Start by updating any files or software that need updating (do this for your phone as well), because these often have new security measures that won’t go into effect until you push the trigger. This goes for your firewalls and anti-virus software, too. Next, delete files and apps you’re no longer using. Not only do they take up precious memory, but they also put you more at risk if they house sensitive information (i.e. PINS, passwords and account numbers).
For more on this, read my blog post on my website here.
Nothing to tease about: Hairdressers still more regulated than tax preparers
Not to be a Debbie Downer during your end-of-tax-season celebrations, but there’s something you should know before putting all those tax-related files away until next year. A study released last week shows problematic (and potentially costly) errors on over 90 percent of tax returns filed by paid preparers. The report, released by National Consumer Law Center (NCLC), Florida Alliance for Consumer Protection (FLACP) and Reinvestment Partners, looked at 29 “mystery shopper” tests and found wrong moves in 27. In one testing scenario, which included a hypothetical single parent: 53 percent of preparers had the tester claim a minor child incorrectly, and 80 percent of preparers didn’t report the scenario’s $800 in side income they were supposed to. The potential cost of these errors in this single-parent scenario alone can range from $37 to $427.
“This is the latest in a long line of mystery shopper tests showing the frequent errors made by paid tax preparers that put consumers at serious financial risk,” says Stephen Brobeck, executive director of the Consumer Federation of America (CFA). “The research underlines the need for effective regulation to ensure adequate education and competency standards for the preparers, and transparent and reasonable pricing for their services.” Most states — as in 46 of them — don’t have any rules or regulations for independent tax preparers. That’s right, only four states (California, Oregon, Maryland and New York) require testing and continuing education for hundreds of thousands of independent paid tax preparers. “Something that we’ve mentioned numerous times — in all 50 states — is that your hairdresser is more heavily regulated than your tax preparer,” says Alice Vickers of Florida Alliance for Consumer Protection.
If you didn’t go to a regulated CPA, lawyer or tax specialist (called an “enrolled agent”) and are now freaking out a bit, don’t. At least, not until it’s warranted. As Gene King, Director of Corporate Communications for H&R Block Inc. points out, this report represents a small sample, making it difficult to speak in generalities about the training of the tax preparers in the study. (For the record: H&R Block has long supported the IRS in its attempt to tighten the leash on regulation.) But if you’re feeling uneasy, then Vickers suggests going to a CPA or a Volunteer Income Tax Assistance (VITA) site (if you qualify) to have someone review your taxes. You might need to amend them. As for next year, King adds, “A few things to look for when selecting a tax professional – 1. Will that tax professional sign the return? 2. Does the tax pro have a PTIN [Preparer Tax Identification Number]? 3. Does the tax professional have experience preparing returns similar to your situation – i.e. small business, investments, rental property, etc.”
Insurers pump the breaks on post-ticket premium spikes
After the initial embarrassment over getting a traffic ticket for speeding, rolling through a stop sign or failing to buckle up fades, the panic sets in over how much your mishap will cost you. You likely worry not just about the cost of your ticket, but also a potential bump in insurance prices. Calm down. According to a new report from InsuranceQuotes.com, just 19% of Americans who received a traffic ticket in the past five years are paying more in premiums because of it. This is down from 31% in 2013. Why the change in direction?
Millennials are often stereotyped as the riskier drivers, but it’s actually Americans between 30-49 years old who are the country’s most ticketed. And while insurers regularly check young drivers’ records every six months, they don’t do the same for older drivers (because checks are costly and there’s supposedly less risk). In other words, insurers know less about you — and those minor tickets and violations — than you think. With that said, you can limit the impact of a traffic ticket by taking a class at traffic safety school.
Have a great week,
Jean
