How To Protect Yourself From Identity Theft

Identity Theft 101

First Published Date: August 11, 2010 ADawnJournal.com

One of the worst things that can happen to you, financially speaking, is to have your identity stolen. While identity theft was exceedingly rare through most of the 20th century, it has become one of the fastest growing crimes in the world in the 21st century. Identity thieves have a plethora of ways to steal your identity and it can often be very difficult to handle your credit after an identity thief has attacked it. Throughout this article, I will show you what you need to know about identity theft, what you need to do to protect yourself, and what you need to do if you are a victim.

Identity theft is a type of fraud where a thief will pretend to be you by taking your identity with the expressed purpose of access your resources and credit information. They can then use that information to buy things in your name, take out loans in your name and more.

The term identity theft dates back before the internet existed, all the way back to 1964, and some argue that it is more accurate to call it identity impersonation since you cannot take someone’s identity and leave them with no identity.

Identity theft has an immense impact on the world, more than most people realize.

According to the book Stealing Your Life¸ an astonishing 38 percent of victims in the United States do not tell anyone that they are the victims of identity theft. The reason for this is that there is an embarrassment to it and many do not want to admit they were victimized by an identity thief.

In addition, identity theft increased rapidly in the first decade of the 21st century. According to the Federal Trade Commission, in 2001 there were 750,000 identity theft victims, whose damages amounted to $5 billion. By 2004, there were 10 million victims and the cost was $54 billion. By 2007, the FTC was receiving more calls and complaints about identity theft than any other issue. On average, someone who is the victim of identity theft will spend 330 hours trying to get their credit right and fixed. That amounts to nearly a full two weeks in time to fix the problem. It is important to note that is just the average. Times to repair identity theft damage have been found to range from as little as three hours, to as much as 5,840 hours. If it takes you 5,840 hours to repair your credit, it amounts to 243 full days, most of a year. That is time away from work, time away from family, trying to deal with something that should not have been a problem.

That is just the time it takes to fix identity theft, but what about the financial cost. According to the Identity Theft Resource Centre, it costs an average of $881 to $1,378 to fix a problem that you did not create.

We would also like to think that most identity thieves are caught and sent to prison but a Gartner study found that there is only a one in 700 chance of an identity thief being caught. If an identity thief is caught, they risk 15 years in prison and huge fines. However, the cost to the government is very high. It will typically cost $250,000 to prosecute such a case, even on identity theft cases that only cost someone $100,000.

If you are going to save yourself the trouble of being a victim of an identity thief, then you need to know how identity thieves get your information. There are a wide variety of methods, some of which you may be surprised at.

·   Thieves will actually dive into the garbage in order to get your identity. It is called dumpster diving and they will rummage through garbage bags to grab credit card bills. This is why it is so important that you shred all your bills and invoices.

·  Thieves will get information from computers and other electronics that you store your personal information on. This can include mobile phones, USB memory sticks, PDAs, PCs and servers. Whenever you get rid of your old electronics, you must completely wipe the hard drives.

·   Picking pockets is a proven technique for identity thieves. To protect yourself, do not carry identification you do not need, and keep your wallet or purse close to you. If you find they have been stolen, cancel all your cards immediately.

·   One simple method thieves use is to just look over your shoulder while you enter in the information or sign a credit card receipt. Make sure you are aware of people around you and always cover your hand when entering information on a keypad.

·   Malware is also used to get your identity. It is installed on your computer without you knowing, and then the information is stolen and sent to another computer. Having a firewall and software to find malware will protect you. Also, do not download anything you are not sure about.

·   False job offers are another way thieves will get your information. The thieves will accumulate resumes and applications that contain a variety of information including names, addresses, birthdays, email addresses and telephone numbers. In addition, some will even have banking information. Do not put any vital information on a resume without knowing exactly where you are applying. Sometimes it is best to drop off your resume in person so you know exactly where it is going. Never, ever put your personal information like banking details, on your resume as there is no reason for an employer to have it until you are hired.
·   Some thieves will impersonate organizations in order to get your information in what is called phishing. Never send your personal information over email or a website unless you went to the website without being prompted, and you have contacted your financial institution about an e-mail you received so you can verify it.

·   People use very simple passwords like pass1234 and password1. Thieves will try these passwords to get into your account so only use complicated passwords.

·   Thieves will steal your banking information off of checks, and they will even divert your mail to another location so they can get your bills. If you find that you are not getting your mail, contact your bill issuer and find out why.

·   Some thieves will get personal information off of social networking profiles. Many people put up their maiden name, birthday, pictures and more. Make sure you check your privacy settings so that you are not giving away too much information out for thieves to use.

If you find you are a victim of identity theft, you should do the following to minimize the damage.

·   Contact your local law enforcement agency immediately and report the crime to them. It is very important you do this because you can use the statement and information you get from the police department to help fix the problems caused by identity theft.

·   If your bank has been defrauded by the identity thief, then you should contact the bank immediately and report your debit card, checks and credit card as stolen. This will help minimize the damage; you should also look at having your bank account number changed.

·   It is important to know that, in the USA and Canada, you are not responsible for more than $50 of what someone spends on your credit card without you authorizing it if you notify your card company immediately. This is why you should report the credit card stolen immediately as it will make it easier for the credit card company to believe you, and that keeps you only paying $50. In Canada, credit card companies may provide zero-liability protection which goes beyond maximum liability ($50) protection. Check with your credit card company.

·   Put a fraud alert on your credit report. This will freeze any inquiries on your credit and alert your credit agency that someone is trying to get credit on your account. They will contact you to see if it is you and if it is, they will allow the inquiry to go through. If not, they will block the inquiry and notify the person trying to check the credit about identity theft. A fraud alert stays on your credit report for 90 days. If you want, you can get an extended fraud alert that stays on your credit report for seven years. It does not damage your credit and it keeps the damage minimal on your credit. Contact Equifax (www.equifax.ca), Experian (www.experian.com), or TransUnion (www.transunion.ca) to put a fraud alert on your account.

·   Lastly, get a copy of your credit report and keep an eye on your credit report every few months to make sure there are no errors on it. If something shows up, have it fixed immediately so your credit does not suffer.

More Resources:

If you ever believe you have been a victim of identity theft, here is what you can do:

– Call your local RCMP detachment or your Police Department

– Report your situation online through Reporting Economic Crime Online

– Visit PhoneBusters, send an email to info@phonebusters.com, or call 1-888-495-8501

Remember, common sense and vigilance are your best defence.

How to Recognize Common Investment Scams

The Most Common Investment Scams

First Published Date: September 6, 2010 ADawnJournal.com

We all want to make money. That quest is essentially what makes the world go round. Making good money is important because the more money you make, the easier of a life you often have. Many people will work for their money, but some like to make money even when they are not busy working. This is done through investments. Whether you are investing in real estate, stocks, or bonds, you are making money when those investments make money.

Sadly, there are those out there who also want to make money off of investments, but in an illegal manner. They want to make money off you giving them money for fake investments. This is actually more common than people think and each year it can cost people billions of dollars.

Knowing the scams is a good way to avoid becoming a victim of those scams. So, to help you, I present the most common investment scams out there.

1.   Ponzi Scheme: named after Charles Ponzi, this is a common type of investment scam that has been in the news a lot in the past few years. In the early 1900s, Ponzi was able to get $10 million from investors by promising them 40 percent back. He would use the money from new investors to pay the returns of old investors. This works until there are no new investors and the money dries up. Bernie Madoff did the same thing and defrauded hundreds of people out of billions of dollars over the course of two decades.

2.   Promissory Notes: These are short-term debt instruments that are sold by insurance agents and issues by non-existent companies. The agents promise very high returns of as much as 15 percent monthly with no risk. Sadly, this is not the case as the money is given to the agents and then never seen again.

3.   Senior Investment Fraud: Seniors want to have money for retirement, which leads them to finding investments to help money coming in. Con artists will contact seniors and offer them steady returns, low risk and high rewards if they invest in bogus securities, promissory notes, charity gifts and more. One such scam took $2 million from senior’s pensions and IRAs in Pennsylvania in 2003.

4.   Stockbrokers: Many stockbrokers are honest and love what they do, but some are out there to steal money and defraud individuals. Some stockbrokers will cut corners to gain investors and charging unlicensed fees in order to gain money from investors who are not informed about the law.

5.   Unlicensed Agents: There are some con artists who will say they are insurance agents who can help make you money through investments. However, they will not have any license to do so and therefore are not there to do you any benefits. They will promise very high returns, very little risk, and consistent returns for investors. It is very important that you contact the security regulator in your state to see if the agent is licensed.

6.   Prime Bank: Con artists will offer you over 100 percent in returns through investment portfolios in the major banks on the planet. They will target people and mention secret investments by leading world families and royalty. They will state these are banks and investments that are only open to a few, highly wealthy people and investing in them will yield immense rewards. There is no such thing as secret investments and banks, but sadly these con artists target those who believe in conspiracy theories so governments saying there are no such investments only add fuel to the fire.

7.   Internet Fraud: With the Internet being available to everyone, there is a lot of opportunities for individuals to cheat others. Whether it is through phishing, identity theft, or offering bogus investments, there is a lot of ways con artists can target potential investors on the Internet. In just one investigation in November of 2003, 125,000 victims were discovered, who lost more than $100 million combined. It is important that investors do their research and do not take what

8.   Affinity Fraud: When there is a serious natural disaster, many will come together to help. They will donate money to offer relief to those affected and con artists will have no problem stealing that money. Some con artists will offer you the chance to give money to charities, which will get you a tax write-off. However, they will just take the money and run. Some con artists will also use this method with foreign exchange scams.

9.   Variable Annuities: Many investors do not know what variable annuities are and con artists will take advantage of that. Agents and con artists out to make a buck will use that lack of knowledge to make a lot of money off of investors. It is no surprise that the increase in annuity sales has also come with a big increase in complaints. Con artists and agents will not disclose the very high sales commissions or surrender charges to investors. Many of these bad individuals will target investors, especially seniors, through investment seminars. The problem is this type of investment is not suited for those who are retired. You should only go for a variable annuity if they can keep their investment for 10 years or more.

When you are trying to make money off of investments, it is important that you do your research so that you do not fall victim to investment fraud. You want to make money off your investment, not lose it and never be able to recover it. Talk with reputable agents and agencies and even hire a financial advisor you trust. Also, do your research on who is handling your money and request constant reports on how your money is doing. You are giving someone your money to make you money, and you have a right to know what that money is doing for you. Don’t be afraid to ask questions and get the right investment for you through proper research.

Cross Border Shopping Tips

Canadian Dollar at Par? Learn How to Do Shopping In the States

First Published: ADawnJournal.com April 25, 2010

Currently, as of this writing, the Canadian dollar is worth more than the United States dollar. Against the Canadian dollar, the American dollar is worth 99 cents, a full cent below our Loonie. This is a good time to be a Canadian because most of us can remember a time when the Canadian dollar was worth 40 cents less than the American. That meant for every dollar something was worth in the United States, we paid .40 cents extra. To buy a ten dollar book, we paid $14.00. To buy a $100 stereo, we paid $140. Well for the time being that is no more because Canada is back on top.

Naturally, this means some big benefits to Canadian consumers, not to mention hockey teams that can now save money in Canada (unlike the situation in the 1990s). As a consumer, how are you going to benefit from the high Canadian dollar? Well, through cross-border shopping of course. When you go to the border crossing and exchange your money, you get one cent extra for every dollar you exchange. That may not seem like much but it can add up. It will be awhile before retailers in Canada begin to sell things at American par prices, so why not go to the States and get a jump start on savings?

What are the tips for cross-border shopping?

1.   You are not going down to the United States for a vacation, so keep what you bring minimal. Make the process of going over the border easy by having a Photo ID, a birth certificate and a passport ready at the crossing. In addition, you can eliminate some delays by choosing to eat in the United States, rather than bring a lunch. If you do bring a lunch, do not brown bag it or you will probably have it confiscated. If you have a sandwich with beef in it, you will probably lose it as the United States border is very particular about beef products going into their country.

2.   When you are in the United States, do not buy fruits and vegetables that do not originate from Canada. You are not allowed to bring fruits and vegetables from the United States into Canada.

3.   Forget about using your credit card or your debit card. If you use your credit card, you may not be capitalizing on the rate of the day at that point. Credit card companies do not always credit your card right when you make the purchase, it could be later that day or the next day. So, if you buy something today when the Loonie is worth more, the credit card company might put the purchase through on your credit card tomorrow, when the Loonie is worth less than the American dollar. Also, debit transactions can be done, but they cost you $1.50 per transaction.

4.   When you come back over the border, you have to declare everything and make sure you bring your receipts. If you do not declare all your goods and you are caught, then you lose what you bought, as well as the money you spent. On that same note, if you are in the United States less than 24 hours, you still have to pay a duty if you bought goods. If you stay for 24 hours, you can bring back $50 worth of goods without paying a duty and if you stay 48 hours you can bring back $200 worth of goods without paying a duty.

Scam Alert - Beware of This Canada Revenue Agency Letter

Scam Alert - Beware of This Canada Revenue Agency Letter

Canada Revenue Agency recently issued a warning asking taxpayers to beware of a scam letter asking Canadians for personal information. CRA has not sent any such letters asking for any personal information whatsoever. Be extremely careful when you receive this type of mail. Feel free to view the attached picture of this scam letter.

This letter claims that there is "insufficient information" for your tax return and you have to update your records to receive any claims. It does not stop here. There is an attached form asking to fax or email your personal information. This letter is not from CRA. You should be vigilant when anyone (even CRA) asking you to release personal information. If you ever receive any such letters asking personal information, call the institution to verify first. Visit CRA Web site for more info.

If you ever believe you have been a victim or someone has tried to scam you, here is what you can do:

- Call your local RCMP detachment or your Police Department

- Report your situation online through Reporting Economic Crime Online

- Visit PhoneBusters, send an email to info@phonebusters.com, or call 1-888-495-8501

Remember, common sense and vigilance are your best defence.

Why I Switched From Regular Peanut Butter to Organic Peanut Butter

Peanut Butter: Regular Vs. Organic

Let me start with some of the health benefits of peanut butter very briefly.

- Most of the fats (about 47 percent) in peanut butter are monounsaturated fat. This is the fat that lowers bad LDL  cholesterol.
- Peanut butter also contains polyunsaturated fat (about 27 percent). This is the fat that raises
good HDL  cholesterol.
- Peanut butter contains about 8 percent dietary fiber.
- Contains micronutrients such as Vitamin E, Niacin, etc.
- Contains minerals such as calcium, magnesium, potassium, copper, etc.
- Contains Resveratrol, which has natural anti-microbial, anti-inflammation, and anti-aging properties. It helps body to effectively fight off bacteria and various types of fungi.
- Contains folic acid, phytic acid, and phytosterols.

But Beware of Peanut Butter That Is Not Organic

Some of the benefits I mentioned above look really good. However, these benefits will be shadowed by the adverse effects – if your peanut butter is not organic. Consider the following facts –

- Peanuts are grown on the ground and have have soft and porous skin. Non-organic peanuts have very high counts of pesticide residues, as it is a crop that is heavily treated with pesticide. These carcinogenic pesticide residues can cause cancer and other harm to health.
- Non-organic peanut butter has added hydrogenated oil, added sugar, and added salt.
-  Organic peanut butter may have higher nutritional value than traditional peanut butter.
- You will feel the difference in taste in organic peanut butter. It does not taste as good as regular peanut butter (because of no added sugar, salt, fat, etc). It will take some time to get adjusted to its taste.
- You can easily check what foods have what types of pesticides here easily: What’s On My Food?

And I Made Up My Mind

After researching on the pluses and minuses of organic and regular peanut butter, it was not hard for me to do the switch as all the positives outweigh all the negatives. What will be your decision? I suggest you to do some reading and research before you enjoy your next serving of peanut butter.