Alert: Know these ATM Scams That Can Empty Your Bank Account!

In a new twist on an old ATM scam, thieves are using high-tech skimmers to steal account information at automatic teller machines — and victims may not know they have a problem until they see their statements.

In the traditional ATM scam known as skimming, thieves place a card-skimming device into the card insertion slot. The skimmer can steal account information stored on the magnetic strip on back of the card when it is dipped into the machine.

The new twist? Clear plastic overlays also are placed on top of the PIN pad to capture personal indentification numbers. Also, some skimmers can text the stolen bank account information and PINs directly to the scammer so that person never has to return to the scene of the crime.

With ATM machines popping up practically everywhere, the tendancy for many is to simply take their ATM cards for granted. The result of this complancy? ATM theft is a serious  problem.

A recent issue of Scambusters, the online consumer watchdog publication, spelled out 8 Tips to Help Protect Yourself From ATM Theft:

1.  Get in the habit of using the same ATM machine for your transactions. Become familiar with it and be able to recognize changes to the machine.

2. Use ATM machines inside banks rather than on the street (where they’re easier for thieves to access).

3. If you’re visiting an unfamiliar ATM machine that is not inside a bank, examine it carefully for devices. Card or cash trapping devices need to be glued or taped to the card reader or cash dispenser. Look for ‘extra’ cameras beyond the basic and generally obvious ATM security.

Learn All 8 Ways to Protect Yourself From ATM Theft >>>

Was BP Insured Against Its Oil Spill Disaster?

But a much bigger hit could come from liability claims stemming from the oil spill. That’s especially true if lots of oil pollutes the shorelines of Florida and other states around the Gulf of Mexico.

BP, which is the operator on the lease with a 65% stake, insured itself, rather than buying coverage from insurance companies.

That means the company is responsible for funding clean-up operations in the Gulf of Mexico, according to rating agency Fitch Ratings. The cost of that could reach $2 billion to $3 billion depending on how much oil eventually reaches the shore, the agency estimated this week.

People may claim against BP or others, but they might try to claim on their own policies for such losses.

An oil industry analyst at Bernstein Research estimated that the final cleanup bill could be $7 billion, according to media reports.

Compensation will also have to be paid to other businesses hit by the slick. The cost to the fishing industry in Louisiana could be $2.5 billion, while the Florida tourism industry could lose $3 billion, Bernstein predicted.

Compensation in the billions of dollars may also have to be paid to the families of the 11 rig workers who likely died when the structure exploded and sank.

Read on for more analysis of insurance liability of the Gulf Oil Spill! >>>

Can you Visualize the Cash Flow from an Oil Spill? VisualEconomics.com can!

What are the financial costs and effects of the BP Oil Spill? How is the California budget holding up vs. the rest of the world? How much does the average American spend on entertainment?

Those are just a few of the questions that are asked (in words) and answered (in visuals) on VisualEconomics.com, a Website that attempts to put into graphics what  is difficult to convey with words and numbers alone!

Consider these Oil Spill Facts when translated into hard numbers…

Since the April 20 explosion, 210,000 gallons of oil (estimated) have been gushing into the ocean. A barrel of oil costs $86. That’s $430,000 a day floating away in the ocean (and killing birds in the meantime)!

It’s estimated that it will cost $300 million to plug the spill (not including cleanup).

That would buy enough gasoline to drive a gas-guzzling SUV around the circumference of the earth 60,237 times!

Now see for yourself how the numbers take shape at VisualEconomics.com infographics page. A picture is worth a thousand words, and, we can only hope, will help clean up more than a thousand gallons!

What does the BP Oil Spill mean to you and your family when you look at the big picture?

How Identity Theft Works – & How to Prevent It!

Protecting your financial security is what we’re all about at Efinancialblog, whether it’s safeguarding your family’s future through free insurance rate quotes on low cost life insurance or watchdogging your identity against ID theft.

The FTC estimates that 9 million Americans have their identities stolen each year, 26% through credit card fraud, 18% through utilities fraud, 17% through bank fraud and 12% through employment fraud. 1.6 million households were victimized through fraud not related to credit cards (i,e, their bank accounts or debit cards were compromised). Households with incomes higher than $70,000 were twice as likely to experience identity theft than those with salaries below $50,000.

How can Identity Theft happen to you?

Dumpster divers can rummage through your trash looking for bills with account numbers and other personal information on it.  Skimming is the unlawful act of stealing credit or debit card numbers by using a special storage device when processing your card. Phishing is the  diabolical act of pretending to be your financial institution or creditor and sending spam or pop-up messages to get you to reveal personal access information.  Other illicit tactics include changing your address by diverting your billing statements to a third-party location. Old-fashioned stealing of a purse or wallet is another way to acquire personal details and account information. Some thieves go further by raiding unwatched mailboxes for pre-approved credit card offers, new checks or tax information.

How to Keep Your Identity Safe and Sound. Read on! >>>

Credit Card Reform: Is it Good for the American Consumer?

A few weeks ago Congress passed the Credit Card Bill of Rights Act, a bill designed to curb many standard credit practices used in America today.  The bill was passed overwhelmingly by Republicans and Democrats alike, on a 90-to-5 vote in the U.S. Senate.

The bill is aimed to protect the 78% of American families that hold credit cards, about half of whom have credit card debt averaging $5729.  New York Senator Charles Shumer claims the legislation is a victory for “the little guy.”  The Bill of Rights will require credit card companies to give 45 days notice and a simple explanation before raising interest rates (currently they can raise interest rates substantially whenever they deem it necessary) as well as place a limit on penalty fees.  The bill further restricts credit lenders to only being allowed to raise interest rates if a payment is over 60 days late, instead of the status quo where they can raise rates for paying even a single day late.

Insure your credit rating by reading more

Insurance Bailout. Putting the Government Behind Your Protection

At Efinancialblog we keep a watchful eye on all things financial, especially the insurance industry.

The recent federal intervention in the financial services industry is well known when it comes to banks.  An underreported fact is that, as of last month, the Treasury Department has also extended bailout funds to help bolster America’s insurance companies.  While federal bailout funds were originally approved to help banks alleviate toxic loans, the Treasury Department has used such funds to help industries such as the auto industry and now the insurance industry significantly strengthen their financial status.

Read about government support for life insurance

Opposing Views: How Quickly Will the Economy Recover?

One of the hottest debates of the moment among economists, not to mention readers of this blog, is how quickly the American economy will recover from the current recession. Two polarizing views surround the issue. On one side of the question is the position that our economy will recover quite quickly. On the other side of the ring is the longer term, wait-and-see theory of our economic recovery.

Let’s start with the long, hard road. Despite the expectation of a major stimulus package, which is expected to be one of President Obama’s first acts in office, the market has not responded in any meaningful way. A part of this less than rosy forecast is that contraction within various markets is still likely to occur. Why? Corporate budgets have already been set for the year. Combined with a recession occurring in the rest of the world, US exports will remain low this year which will hurt corporate capital. Finally, fears arising from job loss, which may persist even as the economy improves, could keep people from increasing consumption. All of these factors suggest a slower recovery since anything and everything we attempt to do to fix the problem will take a long time to take effect.

Learn more about how economies recover

Energy = Economy

Throughout history, nations have relied upon and gone to war over, the resources they need to run their economies. These resources have evolved from water, to farmable land, to the ever more volatile resource of oil. Energy is the life force of a modern economy.  In the current equation, oil adds up to both convertible heat in a building furnace or combustion in an automotive engine to drive transportation.

Like all finite resources, our oil supply is subject to the market forces of supply and demand.  The commodity is on a trajectory to skyrocket in price, be it in the short term or long, and must be weighed against more economical alternatives.

Just as important as the economic impacts are the environmental benefits. The right energy policy can spark the dynamism of our economy through long-term investment in renewable energy. We can create potentially millions of jobs, starting with a 21st- century economic recovery plan that puts Americans to work building wind farms, solar panels, and fuel-efficient cars. At the same time, we can reduce the carbon emissions that threaten to warm the planet through the creation of greenhouse gases in the ozone layer.

Shifting from an oil based economy would also cut our dependence upon foreign entities for our economic survival. Imagine all the money Americans would have saved this summer if gas was less than $4 a gallon. If we do not need as much gas, the money saved could be funneled into our national economy, increasing our economic strength. Energy = economy if you do the math.

How do you think America’s energy policy has affected our economy? How could new energy sources  transform the economic landscape?  Energize us with your ideas!

The Economy as a Red Balloon

In the past week, the Dow Jones Industrial Average, one of the barometric indicators of upward or downward pressure in the American stock market, has been rising and falling like a red balloon caught in a windstorm. Many feel as tossed and tumbled as that helpless balloon, asking themselves “What’s next?” and “When will the wind change?”

According to the Chairman of the Federal Reserve, Ben Bernanke, the key is for that metaphorical balloon to settle back down to earth. “Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away.” This is promising news for mid-to-long-term investors who have held on the wind tunnel that is the US economy the past two weeks, and suggests that stock market investors might be better off keeping that long term view.

Learn more about key economic indicators

Will the Bailout Help the Economy?

Over these last several, angst-ridden days, the red hot political topic has been the financial crisis that looms large over the American landscape. The $700 billion dollar bailout authorized by Congress begs a great many questions of the American taxpayer and, so far, this “perfect financial storm” has provided precious few answers.

Will the $700 billion relief plan bridge the chasm, or does it address just the tip of a titanic iceberg? Should the American taxpayer be held responsible for Wall Street institutions or is the rescue effort a question of survival, fundamental to buttressing America’s economic foundation? Is there a stimulus to energize market confidence and is it psychological, political or financial? Read more about the financial bailout

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