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.

Kuala Lumpur Full-Day City Tour – Part 3

Malaysia Travel Blog: Discover Amazing Kuala Lumpur City Tour

Kuala Lumpur Travel Blog: Part 6

National Mosque (Continued from Kuala Lumpur Full-Day City Tour – Part 2)

There were many reflecting pools and fountains throughout the mosque. A sense of tranquillity and peacefulness existed throughout the complex.

I noticed there was a point up to which non-Muslims can go inside the mosque. The employees were not letting visitors inside, which seemed to be the main prayer room, unless they were Muslims. 

Some of the Kuala Lumpur skylines were visible from the mosque. I saw 2 buildings connected on top, which looked like a boat, next to the St. Regis hotel. This building complex kind of looked like the Marina Bay Sands Hotel in Singapore. I was not sure if these 2 buildings were a part of the St. Regis hotel or separate.

Independence Square & The King’s Palace

From the National Mosque, I headed to Independence Square. This is also known as Merdeka Square or Dataran Merdeka. Independence Square features a panorama of long-stretch, fascinating buildings in an array of architectural styles. Here the remnants of the British Empire are clearly visible.

The King Palace is the official residence of the Malaysian supreme king and a symbol of Malaysian sovereignty. The palace is made of many golden domes and structures influenced by Islamic-style architecture.

The palace complex was huge and tourists only can come close to the entrance gate. The main palace was far from the gate, but still visible.

I stopped at a few more locations here and there. I will be heading to the Batu Caves, which are located north of Kuala Lumpur.

What Age Should You Retire?

Are You Ready to Retire?

First Published Date : August 14, 2010 ADawnJournal.com

Everyone knows that the general retirement age is 65, which is when people feel they will retire. However, for some retiring at the age of 65 is too late, while retiring at that age is just too early. So, how do you know when the best year of your life is to retire? It is a tricky balance. You want retire in time so that you can enjoy your remaining years because no one wants to retire at 85. However, you also want to make sure that when you do retire, you have the money to enjoy yourself. You can’t live on $10,000 a year if that is all you have to sustain you for the next 20 years if you retire at 65.

When looking at if you are psychologically ready to retire, see if any of these match what you feel:

1.   You find that work interferes with the things that you want to do with your life.

2.   You want more freedom with your life.

3.   You want to retire when you can still enjoy your retirement and still have your health.

4.   You are prepared to lower your costs in order to save more in your retirement.

5.   You are not fulfilled or happy in your job anymore.

6.   You have plans and goals you want to fulfill with your extra time.

The next thing you need to do is look at whether or not you are ready to retire financially. This can be harder to determine because there are so many variables. Do the following to determine if you are ready to retire:

1.   Look at how much you pay out for expenses now, and determine what you can cut back on. Then, look at your expenses at that point and how much money you need to live on for the next 30 years.

2.   Look at how much you have in your savings and retirement fund and divide it by 30. If it gives you enough to live on, you may be ready to retire.

3.   Determine how much money you have in spare in case of disaster. As you get older, medical costs can come up and that will cause severe problems with your finances.

4.   When you retire at 65, you should have enough money to last you for at least 25 years living just on pensions, retirement income and retirement savings. It is important to remember though that if you retire at 55, you need to have 35 years of savings and retirement income at your disposal. The sooner you retire, the more money you need to live off of because there are more years before you reach the end of your life, statistically speaking.

If you match these criteria, and you are ready for retirement, then you should seriously look at retiring. Retirement is something that you will look forward to, but if you retire too late, or too early, you will not be able to enjoy it as you would want to.

Some Facts About Brazil’s Economy

The Growing Power of Brazil

First Published Date: August 19, 2010 ADawnJournal.com

Brazil is a very interesting country with a very bright future if many economists are to be believed. Brazil, while considered a developing country in the past, is now one of the most important economies on Earth.

Brazil has the eighth largest economy in the world in terms of nominal GDP, and it ranks ninth in terms of purchasing power parity. Among all of the South American nations, it has the largest economy, and it has one of the fastest growing economies on Earth, with a GDP growth rate of five percent. Naturally, many are predicting that within a few decades, Brazil will have one of the five largest economies on the planet.

In 2009, Brazil was the top country in terms of upwards evolution of competitiveness. It gained eight positions, and passed Russia for the first time in history. Brazil is also beginning to close the gap with India and China.

Much of Brazil’s fast growth is as a result of the changes made to the economy in the 1990s, which focused on fiscal sustainability and the opening of the economy, helping to boost how competitive the economy is in the world. Brazil, as a result, now has a much better environment for private-sector development.

Brazil’s economy is in a wide amount of sectors. The country builds submarines and aircraft, as well as smaller-end technologies. In addition, Brazil was the only country in the entire Southern Hemisphere to help in the construction of the International Space Station.

Exports within the country amount to $158.9 billion. The biggest export for the economy of Brazil is transport equipment, iron ore, soybeans, footwear, coffee, automobiles and their parts, and machinery. The main countries that Brazil exports to are the United States (14 percent), Argentina (8.9 percent), China (8.3 percent), Netherlands (5.3 percent), Germany (4.5 percent) and Japan (3.1 percent)

Brazil imported $136 billion in goods in 2009, with their main imports being machinery, electric and transport equipment, oil, chemical products, automotive parts and electronics. The largest importers into the country are the United States (14.9 percent), China (11 percent), Argentina (7.7 percent), Germany (6.9 percent), Japan (3.9 percent), Nigeria (3.9 percent) and South Korea (3.1 percent).

Brazil, while greatly improving its economy, still has some work to do. The country still has a great deal of poverty, and low wages, along with environmental problems. However, as the country continues to move into the future, it is certain that it will become a leader on Earth in many sectors. Brazil already leads the world in the use of ethanol gas, with a large percentage of its vehicles running on ethanol. In the coming decades, most economists believe that the United States will fade in economic power, while Brazil, China, India and the European Union will grow in economic power to become the economic centers of the world. For many looking for countries to invest in, Brazil is a place that cannot go wrong for the time being, even weathering the worldwide recession quite easily.

Personal Finance Guide for Kids Age-by-Age

Teaching Children about Money: Goals by Age

First Published Date : August 22, 2010 ADawnJournal.com

Did you know anything about personal finance when you were a kid? I did not, and I hadn’t the slightest idea of how money and finances worked at that time. I wish things were different then. I wish I was taught to prepare myself to face the real world financially. It’s not just me; most of us were not given any money lessons at an early age and at schools and universities. It is time to take lessons from our past. As parents, our goals should be to financially prepare our kids to face the money challenges that exist in the present world. Today, I will present a simple age-by-age personal finance guide for kids. To make things simple, I have broken down the learning time frame into 4 different parts: age 1 to 5, 5 to 10, 10 to 15, and 15 and beyond.

Personal Finance Guide For Kids: Age Up To 5

Kids start to show interest in money and coins at an early age. During this time frame, start teaching kids the basic concepts of money. Here are some ideas:

Introduce them to various coins and bills.

Teach them how different coins and bills add up to a greater bills and coins. For example, 5 pennies make a nickel, 5 Loonies (1 dollar coin) make a 5 dollar bill and so on.

Explain how money and society work. Money is something that we exchange to buy various products and services to take care of ourselves.

Teach where money comes from. We go to work to earn money and this makes us sacrifice our time at home with family.

Buy them a piggy bank and encourage them to save money by putting money in it whenever they have some in their hands.

Personal Finance Guide for Kids: Age 5 to 10

Explain that money is not endless. We need to make choices between products or toys; we can’t have it all, as money is not endless. If your kids ask for many things at a time, an exercise you can do is to give them an amount, such as $5 or $10, and tell them to pick the one they think would be the best.

Tell them we need money to buy food and take care of ourselves. We can’t spend all money as soon as we get it because if we do that, we will be in trouble in the future and won’t have anything to take care of ourselves.

Involve kids in family planning and finances. Ask your kids to participate actively in family meetings regarding future planning and money issues. For example, if you are going on a vacation, ask your kids to research the best deals within your budget or ask everyone, including the kids, for their suggestions on fulfilling goals of making major purchases and so on.

Do not give kids allowance without proper guidance. Help them to budget their allowances, especially a certain percentage (15 to 20%) going to their savings accounts.

Teach them how to pay for a purchase and how to count the change they are getting back from the cashier.

Teach kids the power of giving. Tell them that we are fortunate to live in one of the wealthiest countries on earth and not everyone is as fortunate as we are. Explain to them that we can live a more meaningful and joyous life by sharing and giving what we have to those who are less fortunate.

Explain how a bank works, what a credit card is and why it charges interest. 

Explain to them what a budget is and why it is important to stay within a budget. However, do not over-emphasize the budget at this time.

Personal Finance Guide for Kids: Age 10 to 15

It is time to put some concepts you taught your kids in the previous age segment into practice at this time.

Set up a real savings account at the bank. Teach your kids how to handle bank accounts. Teach them about credit cards and how they work. You can also set up a credit card for them with a lower limit. Here is an article to deal with credit cards for kids: Should We Give Credit Cards to Kids?

Help your kids with setting goals. Explain to them how to set up goals and show them how to reach goals by making plans. For example, if they want to buy a bicycle or a gadget, instead of financing the full cost ask them to finance half from their savings by setting up goals to save that much.

Kids should pay for their expenses such as movie tickets, cell phone bills, snacks, etc. themselves. The reason? Using their allowances to pay for stuff they need will make them realize that money is limited and if they waste money on something, they won’t have money to buy other things.

Ask them to exercise the power of giving. Even from their small allowance, they can donate to charities and to those who are less fortunate.

Kids should budget for their expenses at this point and should spend less than their earnings or allowances.

Kids should not be paid for doing regular household chores. However, you can pay them for special projects which are outside regular chores such as such mowing the lawn, cleaning the backyard, and so on.

Personal Finance Guide for Kids: Age 15 and Beyond

This is the most critical time of kids’ lives as they are on the verge of stepping a foot into the real world. Personal finance education should follow a slightly different path at this stage.

Start talking about more targeted personal finance teachings starting this point. Some of the examples are: Investing 101, debt management, credit cards, how financial markets and products work (Invest Now by A. Dawn is a recommended book to learn the basics of financial markets and products), and so on.

Some of the resources you can use for your kids can be found right here, written by your favourite personal finance author A. Dawn. The Personal Finance For Kids Section is just one to mention among a few of them here. There are tons more articles suitable for kids available for free on A Dawn Journal. Take your time to read them to enhance your knowledge on personal finance at your leisure by bookmarking this page.

Just because your kids have reached this age does not mean that you should stop talking about finances. Kids at this age need more financial advice and guidance than ever before. Have open discussions about money and finances whenever opportunity exists.

I have taken my time to write this article suitable “in general” for all kids. These guidelines or tips are not set in stone. It is recommended that, based your kids’ ability or interest, you may need to switch around these tips. For example, if you find your 7-year-old seems to be very interested in learning about finances, try using some tips from the 10 to 15 age group and observe how she reacts. It is the parents’ responsibility to secure their kids’ financial future by guiding them through a solid financial roadmap from their early days.