Card Skimming 101: How to spot, avoid, and deal with it

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A thief use magnet steal credit card

“Skimming” is a method by which thieves steal your credit card information, and all it requires is a little illicit technology and a lot of criminal intent by those who handle your credit card. Skimming occurs most frequently at retail outlets that process credit card payments — particularly bars, restaurants and gas stations.

How skimming works
Skimmers are small devices that can scan and store credit card data from the magnetic stripe. Crooks can install skimmers on a gas pump, or corrupt employees can have a skimmer stashed out of sight of customers. Once the card is run through the skimmer, the data is recorded, and the crooks can sell the information through a contact or on the Internet, at which point counterfeit cards are made. The criminals go on a shopping spree with a cloned copy of the credit or debit card, and cardholders are unaware of the fraud until a statement arrives with purchases they did not make.

John Brewer, assistant district attorney in the major fraud division of Harris County Texas District Attorney’s Office, says, “Many consumers think that shopping online is a high-risk endeavor compared to going to a brick-and-mortar store, but I believe the opposite. The vast majority of cases we investigate have to do with employees at a physical store stealing your information.”

How to avoid skimming

  • Make sure your card stays in sight, and never let anyone leave your presence with the card if you can help it. “Skimming occurs most at restaurants since the waiter has to walk away with your card,” Brewer says. “If you are in a retail store and they say they have to go to another counter to run the card, follow them.” If you are concerned about letting go of your card at restaurants, use cash instead.
  • Your credit card is like cash. “You need to be aware that your credit card is very valuable,” Brewer says. “Treat it like a diamond or cash. Would you just give someone cash and let them walk away with it?”
  • Monitor credit card receipts and check them carefully against your statements. If you are married, sit down with your spouse to account for all charges, Brewer says. Some thieves take out small amounts in hopes cardholders won’t notice.
  • Shred unwanted financial solicitations and put your mail on hold when you leave town. This will help with other forms of identity theft.

To further protect yourself from potential unauthorized charges or identity fraud, you can request that credit bureaus monitor your accounts for unusual spending patterns and require them to notify you before new credit can be granted in your name. These services come at a price; normally under $100 per year depending on the credit agency. But that might be a worthy investment, especially if you eat in restaurants on a regular basis.

How to deal with skimming

  • Call the police. “When your identity or credit card is stolen, it’s just like having a car stolen,” Brewer says. Make a police report and hang on to the police report number.
  • Contact your bank or credit card issuer immediately and tell them your card data has been stolen. If you don’t make a report quickly, you may be liable for some or all of the unauthorized charges.
  • If you report swiftly, federal law caps your liability at $50. Most credit cards voluntarily go further, and won’t charge you at all — again, if you report quickly. “If you end up being a victim, it’s probably not going to cost you any money,” Brewer says. “If you notify your bank quickly, they’ll return the money. Don’t get hung up about the fact that someone might drain your bank account. The most you will probably spend on it is wasted time and lots of aggravation, since it can be a long process to get everything worked out.”
  • Contact the three major credit bureaus — TransUnion, Equifax and Experian — to request a security freeze, which prevents new credit authorizations without your consent. Brewer suggests visiting the website www.annualcreditreport.com.  Through the site, which was mandated by federal law in response to consumer outcry, you are entitled to receive one free credit report each year from each of the three major credit bureaus.

Brewer suggests viewing the credit reports on a computer you can print from – since you only get to check them once a year. “Look at the inquiries section of your report, and see which companies have looked at your credit,” Brewer says.

If a car dealership looked at your report but you didn’t go there, it’s a sign that the person with your card information went car shopping. Give these reports to the police; it will help them investigate your case.

9 Basic Pieces of Money-Saving Advice No One Follows – But Should

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download (1)Good advice can be hard to take – especially when it comes to money. Often, the thing that’s best for us is the thing we really don’t want to do. Saving more and spending less is boring; why do that when you can have fun now?

Well, you know what else sounds boring? Working for the next 50 years.

There are some very basic pieces of money advice that experts give, but no one seems to follow. So, let’s make a deal: How about we start listening to what these experts are saying? The sooner we start, the sooner we’ll reach our financial goals.

Here are nine pieces of financial advice you need to stop ignoring.

  1. Run your financial life like a business. You should treat your budget like a business because, in the business of life, the bottom line matters. Many of the same principles business owners use can be applied to your personal life: prioritize, assess and restrain. Everything that keeps a business running will keep your personal finances in order: prioritize your spending, assess your profits and losses, and don’t lose sight of the big picture, like saving for retirement or getting out of debt. This is fairly common advice, but when it comes to actually saving and making more money, there isn’t a one-size-fits-all strategy. Just like every business has its own unique goals and needs, you will too – so manage accordingly.
  2. Make saving part of your lifestyle. Saving money doesn’t always come naturally. Successful savers usually fail a few times (or more) before they figure out what works best for them. It’s easy to get discouraged and give up, but just like exercising and eating well, saving money takes a while to get right. It’s also important to remember that a frugal lifestyle doesn’t mean living in deprivation. People who live with less and save more know where to cut back. Even shrinking your grocery bill by just $15 a week will save $780 a year – imagine all the other little cutbacks that are possible. So instead of making drastic lifestyle changes, build your savings muscle slowly by making small adjustments over time. After a while, you won’t even notice a difference – except in your bank account balance.
  3. Save the difference. Are you a bargain hunter, coupon clipper or thrifty shopper? What do you do with all the money you save? If you’re like most consumers, you just spend it on something else. The point of getting a discount is to save money, right? The next time you get a discount or score a sweet deal, save the difference of what you didn’t spend.
  4. Automate the process. This is a piece of money-saving advice that is echoed by nearly every financial expert. Paying yourself first is the first step, which means setting up an automatic transfer from your checking account into a savings or investment vehicle. You can set up one large transfer to go through monthly, weekly or whenever works best for your finances – as long as it’s automatic, you’ll be saving without even realizing it. Some experts recommend transferring a portion of your paycheck into savings, and once you reach a certain balance, transfer any additional funds into an investment account. If you aren’t sure where to start, try automatically transferring 10 percent of each paycheck and see how that feels.
  5. Seek advice on your 401(k). It’s official: People with 401(k)s are better savers, according to a study last year by Natixis Global Asset Management. Want to get the best returns out of your nest egg? Get professional help. The study found 74 percent of people who see a financial advisor for 401(k) advice know exactly how much they need to have saved by the time they retire. Set up your complimentary appointment with First Financial’s Investment & Retirement Center to discuss your retirement and investment goals. Contact the IRC at 732.312.1500, or mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com.
  6. Save your spare change. We all have loose change filling our pockets or strewn on our bedside tables. Start banking that change, and you could put a serious dent in your savings goals. For example, putting just 50 cents a day in a jar can help you save nearly $200 over the course of a year. Some experts also recommend only using paper money for daily expenses, such as coffee and lunch, and then saving the difference. If you don’t carry cash, consider using an app like Acorns, which invests your spare change for you.
  7. Fill a need. Many experts say the trick to making money (so you can save more of it, of course) starts with thinking about others before you think about yourself. Basically, the path to success starts by first identifying a need and then filling it. Your earnings are a byproduct of how well you serve your audience. So, focus on filling your customers’ or boss’ needs, or solving a problem, and you will likely make more money (whether through a raise or increased profits). This concept can also be used for people who freelance or want to start a side business – find out what people want, and give it to them; you’ll be in high demand.
  8. Live like a student. No, you don’t have to survive on a diet of ramen and frozen burritos in order to get ahead, but you can take a lesson from struggling students everywhere and learn to live with less. If you are just starting out in the workforce, try living on half your paycheck. Since you’re probably already used to living off very little, half your paycheck should be enough to get by. Meanwhile, you’ll pad a robust savings account with the equivalent of a full paycheck each month. For those who aren’t fresh out of college and have large expenses like a mortgage or child care, try saving a penny of each dollar you make; then, step it up another penny every six months. In five years, you’ll be saving 10 percent of every dollar you make; in 10 years, you’ll be saving 20 percent.
  9. Trick yourself. Many behavioral economists say mental accounting (i.e., treating different piles of money with different intentions) helps trick your brain into better budgeting and saving. This strategy might sound a little complicated, but it’s really a take on the classic envelope system, where you allocate your paycheck to a weekly or monthly budget and put the cash into different envelopes – one for each budget category. Once the envelopes are empty, your budget is maxed out.

What’s the Most Dangerous Kind of Identity Theft?

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6a0154366bdf49970c017d4230dc0a970c-800wiLike the thieves behind the crime, identity theft can take on many disguises depending on the information stolen. When identity theft goes undetected, these crimes can not only cost victims their money, but also their health and well-being.

It’s nearly impossible to avoid identity theft, but awareness and vigilance are key to fixing the problem if you do get hit. As each kind of identity theft could be more deadly than the next, here are three particularly dangerous types of identity theft.

Child ID Theft

  • What makes it dangerous: Thieves often go after children’s identities through stealing data from schools or even taking their relatives’ information. Children will likely not know they were victims until they grow older and are denied for their first loan, credit card or even housing – because of a poor credit history. This blemished credit report could cause them to be denied new lines of credit, which could stunt their financial wealth.
  • How to avoid this identity theft: Check your child’s credit by requesting a free credit report (you can get your own credit reports for free once a year) and dispute and close any unauthorized accounts that were opened.

Medical ID Theft

  • ​​What makes it dangerous: Although consumers may think their medical information is not a target for cybercriminals, healthcare companies are becoming increasingly targeted. Data breaches in the healthcare sector could result in your information falling into the hands of thieves who could then use this data to take advantage of medical services. A report by the Ponemon Institute found medical identity theft has risen 22%, resulting in patients’ health information potentially being mixed up with thieves’, which could lead to potentially deadly medical mistakes.
  • How to avoid this identity theft: Always read the data privacy statement your healthcare provider gives you before agreeing to the terms and monitor your accounts in case of fraud.

Tax ID Theft

  • What makes it dangerous: Tax fraud through identity theft is an easy way for criminals to make money. The Internal Revenue Service has been known to give out billions in fraudulent tax refunds.
  • How to avoid this identity theft: File your income taxes early each tax season and shred any and all documents with your personal information on it.

While medical identity theft is dangerous in almost every aspect of your well-being – from a health to a financial standpoint – these other types of identity theft could also pose a threat to your or your loved ones’ futures. By protecting your personal information, you could help curb this crime and keep yourself from becoming a victim. Any large, unexpected changes in your score could signal new-account fraud and a sign that other serious forms of identity theft are on the way.

*Original article source written by Patricia Oliver of USA Today.

7 Easy Ways to Save More Money Today

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downloadSaving more money doesn’t necessarily mean giving up restaurant meals for good or never buying a new outfit again. In fact, there are plenty of ways to save money without making too many sacrifices. The following seven ideas might take a bit of extra effort, but they also have the potential to pay off, right into your bank account.

  1. Get healthy. For people who struggle to stay fit, eating healthy and staying in shape is easier said than done. But for those who are in good shape, you can save a lot of money on life insurance and individual health insurance plans. And as an added bonus, you’ll feel better and have more energy. You don’t have to join a pricey gym, either: You can take up walking or jogging, or download a free app that helps walk you through different exercise programs.
  2. Rethink auto insurance. Every year, re-examine your auto insurance policy for savings opportunities. For example, consider raising your deductible, which lowers premiums. For older vehicles, evaluate whether you really need collision coverage, which covers damage to your car when your car hits or is hit by another vehicle or object. And make it a habit to compare auto insurance quotes annually, which can be done online in minutes. (While you’re at it, consider taking time to compare other insurance policies that you currently have, including homeowners insurance).
  3. Improve your credit score. Of all the painless ways to save money, improving your credit score is arguably the most important. From home loans and car loans, to credit cards and auto insurance, a good credit score can save you a small fortune. Over a lifetime, the savings can easily reach tens of thousands of dollars. The simplest way to improve your credit score is to make on-time payments each month on all of your accounts.
  4. Think triple play. One of the biggest monthly expenses for some is the cost of Internet service, cable and phone. The majority of providers offer discounts when you bundle all three of these services together. Called a triple play, you not only save money, but you also get the convenience of a single bill each month.
  5. Go prepaid with your cellphone. While this option won’t be right for everybody, many can save a small fortune with prepaid cellphones. You can find prepaid cellphone plans that start at $25 a month. And because they are prepaid, you don’t have to commit to long-term contracts. Two of the more popular prepaid cellphone carriers are NET10 Wireless and Cricket.
  6. Shop online. There are several benefits to shopping online – convenience being chief among them. But shopping online can also save big money. Many retailers offer special discounts to online shoppers. And virtually every company that sells products or services online offers promo codes, discounts or coupons. Particularly if you have a big purchase, make sure to search the Internet for deals before buying. You can also track discounts and coupons through online tools, including RetailMeNot and PriceGrabber.
  7. Get cash back. If you have good credit, there are a number of cash-back credit cards that pay up to 5 percent on purchases. The key is to use the card for monthly bills and everyday expenses, not to charge things you don’t need. Put monthly bills that accept credit cards on automatic payment, and use the card for everyday purchases such as groceries and gas. And as an extra precaution against overspending, pay the credit card bill in full several times throughout the month. It’s easy to do online, and it prevents any surprises at the end of the month.

*Original article source courtesy of US News – Money.

5 Unique Ways to Save on Your Holiday Shopping

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gifts isolated on white background

Whether we like it or not, the holiday season is here. That means one thing: spending money and potentially a lot of it. In a survey by the American Research Group, Americans plan on spending nearly $900 on their holiday shopping. Such an amount can put a significant stress on a budget, leaving families looking for ways to save money.

We all know about the traditional ways to save money on shopping, from Black Friday to Cyber Monday sales. Those discounts can provide nice savings, but they only scratch the surface. There are many other tools and tricks to help you stretch your holiday budget. Below are some unique ones to help you save this year.

The Four-Gift Rule

The four-gift rule has made its way around the Internet over the past few years. The idea behind it is relatively simple. Instead of overwhelming recipients with a lot of gifts and costing you more, you make your gift-giving more intentional. The rule dictates the following: You buy the person something they want, something they need, something to wear, and something to read.

The rule may not work for everyone, as it’s particularly angled toward a younger child or perhaps a spouse. With children, in particular, this approach can help avoid excessive gift giving and thus save you money in the long run. It’s practical and still also allows for fun and creativity.

Use Apps

Smartphone apps can be a great way to save money on holiday shopping. We all know about popular apps like Amazon that allow you to compare prices in real-time. There are many other apps out there that can help save you money on your holiday shopping needs.

Some of these newer apps are Flipp and Slice. “It rounds up all of the shopping ads and circulars in your local area and presents them to you in a format that’s very easy to flip through,” says Jill Cataldo, founder of the Super-Couponing.com. The Flipp app also allows you to collect local coupons so as to maximize your savings.

The Slice app allows you to set a price tracker, which tracks the amount you spent on an item. If the price drops, it notifies you so you can get the difference refunded from participating merchants.

Use Gift Cards

MarketWatch reports that $750 million in gift cards were unused in 2014. If you have an unused gift card lying around, that is free cash not being spent. There may be a number of reasons you didn’t use the card, from not liking the store to forgetting you had the card.

Regardless of the reason, an unused gift card can be a great way to reduce the overall amount you spend out of pocket for holiday gifts. Instead of letting that card continue to collect dust and lose value due to potential inactivity fees, use them to buy gifts. It may feel tacky, but it is a great way to save money.

Buy Discounted Gift Cards

Gift cards play a dual role for potential savings. Many who have unused gift cards sell them for cash. This has opened up a market for sites like Card Cash, Raise, Card Pool and others that sell discounted gift cards. Such sites allow individuals to buy gift cards for up to 35 percent off standard price.

Such a service can be a great way to save a little extra money if a gift card is on your shopping list. Just make sure to read the terms and conditions prior to purchase.

Break It Up

Another overlooked way to save money on holiday items is by purchasing an item in bulk. That may sound counterintuitive, but it works. “The set gives you a lower price per unit and you can toss them into a gift bag helping you save without skimping on the gift,” says money-saving expert Andrea Woroch.

Woroch explains that the item bought at a warehouse club can be broken up and repackaged into smaller gifts while still allowing you to take advantage of the lower per unit cost. If you are giving multiple people the same gift, then this can be a great way to save extra money instead of purchasing higher-priced individual gifts.

The holiday shopping season can be a stressful one financially. It doesn’t have to be. With a little planning and creativity, you can avoid being an “average” shopper and become one who saves money.

The perfect way to save for your holiday expenses is by opening a Holiday Club Account right here at First Financial! No need to put yourself into debt over holiday spending – simply save ahead and come out on top (and not in debt)!*

  • Open at any time
  • No minimum balance requirements
  • Dividends are posted annually on balances of $100 or more
  • Accounts automatically renew each year
  • Deposits can be made in person, via mail, payroll deductions, or direct deposit
  • Holiday Club funds are deposited into a First Financial Checking or Base Savings Account

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the Bronze Tier. Click here to view full Rewards First program details, and here to view the Tier Level Comparison Chart. Accounts for children age 13 and under are excluded from this program.

Article Source: John Schmoll for http://money.usnews.com/money/the-frugal-shopper/2015/11/09/5-unique-ways-to-save-on-your-holiday-shopping

Smart Shopping Tricks to Make Your Budget Last All Month

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shopping cart postitWe can all use ways to stretch our paycheck each month, but it’s not always easy to know which expenses to focus on minimizing first. The fact is, some costs are easier to trim down than others. The strategies below will help you always score the lowest price, making it easier for your budget to go farther.

Always look for the deal.

Local drugstores often feature special deals on everything from personal care to grocery items. While the selection is generally smaller than at the grocery store, drugstores can offer even better discounts. Looking for these deals, and applying them to your purchase can generate big savings.

Register for rewards programs.

Many stores feature rewards programs, including drugstores. Walgreens has Balance Rewards, CVS has ExtraCare, and RiteAid has Wellness+. If you register for these programs you’ll likely receive frequent emails, but there will be gems among them, and you might even save 20% off an order. A smartphone app like Key Ring makes it easy to track account numbers for multiple programs.

Use manufacturers’ coupons.

In addition to browsing through Sunday circulars, you can rely on websites like coupons.com to search and print coupons at no cost to you. Since most manufacturers’ coupons usually have an expiration date that is at least one month into the future, hold onto the coupons until you find a great deal.

Look out for store coupon books.

Many stores offer coupon books, usually at the front of the store near the pile of circulars. They often contain many high value store coupons that can be combined with sales and manufacturers’ coupons for additional savings.

Shop online.

When it comes to essential drugstore items, you can often find the lowest prices online, especially when coupons are applied. Some coupons offer deeper discounts to online shoppers, and you can find everything from vitamins, cleaning supplies, personal care items and pain relievers for reduced prices.

Use blogs.

Many blogs and websites collect coupons and deals for readers, which makes your job even easier. Sites like Retailmenot.com research and sort deals for you, and you can often match the deals with sales in circulars.

Don’t pay full price.

Most retailers make it easy to find deals online. In fact, you should never pay full price for your purchases, at least before checking for discount codes. Signing up for store email lists will also help make sure you don’t miss out on discounts.

Get an Amazon Prime membership.

It might sound counterintuitive, but purchasing an Amazon Prime membership can actually end up saving you money. That’s because it comes with two-day shipping on most orders, movie and TV streaming, and one free book rental per month. You can try out a 30-day free trial membership to see if it would end up saving you money.

Write a review.

Some companies are willing to pay customers, in the form of discounts, for leaving reviews on their products listed online. HonestFew and SnagShout are a couple companies that make this process easy. Once you receive items at a low price (or sometimes even free), then you simply log in to leave your review, whether it’s good or bad.

Buy a reusable water bottle.

Going through a handful of water bottles a day is expensive, unnecessary, and bad for the environment. Instead, pick up a reusable water bottle for yourself. You can even get one that comes with a built-in carbon filter to remove tap water impurities. Your body, and the Earth, will thank you.

Use apps.

Many stores have made it even easier to save these days by introducing their own apps. These apps offer special discounts to shoppers that cannot be found anywhere else, and saving is as easy as opening the app and seeing what deals are available. You can even do this while standing in the checkout line. Other apps, like Shopkick, work at many stores. You can earn points by checking in at stores and making purchases, and then using those points to earn gift cards.

Plan ahead.

Planning out meals in advance is one way to keep grocery store costs down because you can minimize waste or unnecessary purchases. You not only cut out impulse purchases at the grocery store but also eliminate the need to order delivery on those nights you realize you don’t have anything to make. Pinterest can also help with new recipe inspiration if you’re feeling stuck.

Article Source: Lisa Koivu for http://money.usnews.com/money/personal-finance/articles/2015/10/20/smart-shopping-tricks-to-make-your-budget-last-all-month