Personal Finance: Anatomy of an ID Attack
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| Personal Finance Thursday, Jan. 17, 2008
Anatomy of an ID Attack
Personal finance reporter Nancy Trejos doesn't just write about money matters, she also has experience in what can happen when your bank account is in jeopardy. In last week's Sunday Business, she wrote about her close encounter with identity theft in "Identity Theft Gets Personal" (Jan. 13). She nearly became another victim of a crime that has impacted roughly 8.3 million in 2005. The story provides some useful tips. But more importantly, like she did, follow these steps if you do find yourself with a stolen debit or credit card: * File a police report. * Review your credit reports and place a fraud alert on them. * Close the accounts that have been compromised. * File a complaint with the Federal Trade Commission. For more advice, read the transcript of an online chat with Adam Levin, chairman of Identity Theft 911 LLC and a former director of New Jersey's Division of Consumer Affairs. Don't forget about these three columns that I wrote about this topic, too. How Much Can You Really Afford? Listen to a mortgage lender and you may still end up with a house you can't afford, even today under tightening credit standards. How can that be? In Mary Ellen Slayter's latest report "Stretching Old Formulas Can Take You to the Edge" (Jan. 13), she notes: "Just because a lender says you can afford a loan doesn't mean you have to spend that much. Lenders' ratios don't even cover all the costs associated with owning, such as maintenance." Lawsuits Denied for Investors Long after the implosion of Enron and other big companies, some investors are still trying to get their money back through the courts. But unfortunately, a recent decision by the Supreme Court has limited the ability of investors who lost money through corporate fraud to sue other businesses that may have helped facilitate the crime, reports Post writers Robert Barnes and Carrie Johnson. Read about this latest Supreme Court decision in "Corporate Fraud Lawsuits Restricted: Enron and Other Shareholders Limited by Court" (Jan. 16). Tax Tips If you missed my regular Web chat this week, be sure to read the transcript. I was joined by Paul V. Thompson, president of Premier Accounting & Tax, in Alexandria, Va. He provided some great advice. Here's some more tips from the Internal Revenue Service on how to find a professional to help you with your tax return: * Avoid preparers who claim they can obtain larger refunds than other preparers, or those who guarantee a refund or base fees on a percentage of the amount of the refund. Don't fall for people who claim they have some fancy way for you to avoid paying your proper taxes. (If you're tempted, I have two words for you: Wesley Snipes. Not sure what I mean? Read here.) * Choose a preparer you will be able to contact after the return is filed and one who will be responsive to your needs. * Get references from a few clients who have used the tax professional before. * Check to see if the preparer has any questionable history with the Better Business Bureau, the state's board of accountancy for CPAs or the state's bar association for attorneys. Find out if the preparer belongs to a professional organization that requires its members to pursue continuing education and also holds them accountable to a code of ethics. For more tax advice read last week's Color of Money, and today's column about tax refunds. More on Tricky Money Issues I received many more comments about tales of money woes involving relatives, friends or co-workers. Here's what you had to say: Gloria Glasgow of Washington, D.C., wrote: "A few years ago, I loaned a very dear friend $1,000 to help her out. I have yet to receive $1 in repayment. I have more or less declared it a total loss." But the default didn't change their relationship. "We're still friends," Glasgow said. That was not the case for Kathy in Birmingham, Ala. who wrote: "I was asked by a co-worker/friend to co-sign a loan... I can't remember the amount (several hundred dollars) now. [But] when I asked what was the money for, I was told it was none of my business. So, I refused to co-sign. Our friendship was strained for sometime." Based on many of the e-mails I received, there are a lot of people not behaving when it comes to paying the restaurant tab. "Whenever I go out with my sister she [only pays for her meal]. No taxes, no tips," says D.C. native M. Wartin. "If the menu states that it was $12.99 you'll get $13.00 and some times she'll go to the bathroom then walk straight out the door... to keep you from asking her for more." "I love to eat out.. [but] I have an issue with [people] who take the total bill -- before taxes -- add a 15 percent gratuity and then pocket extra money. This has happened to me twice" said Angie Moore of Upper Marlboro, Md. "I figure out what I owe after taxes and leave a generous tip of 20-25 percent. I assumed that all monies over and above would be left for the server. I am appalled that people would pocket money that does not belong to them [because] they don't think the server deserves more than a 15 percent tip." "My husband and I went out with another couple. The couple ordered drinks, we ordered an appetizer to share, and the dinners were about the same price. When the check came, my husband looked at it, quickly figured a 50/50 split and told the other husband what it came to for each of us. The wife then grabs the check and (standing up in a very loud voice) starts adding up what they ate, certain that they shouldn't have to pay as much. Turns out they needed to contribute exactly 2 cents more than us! We've never asked them to go out with us again," wrote Pamela Purcell of Washington, D.C. You are welcome to e-mail comments and questions to singletarym@washpost.com. Please include your name and hometown; your comments may be used in a future column or newsletter unless otherwise requested. -Michelle Singletary Tax Refunds Can Be Worth Their Wait in Gold The author James Baldwin once summed up quite nicely my feeling about Refund Anticipation Loans, which are heavily marketed this time of year by tax-preparation companies. You Can Lend P2P, but Can You Collect? In the wake of the subprime mortgage meltdown, traditional financial institutions have tightened up on who gets to borrow money. But some people are still finding ways to borrow what they need, thanks to another area of lending that is booming. Color of Money Live Personal finance columnist Michelle Singletary hosted a free-for-all discussion about money matters. This week she was joined by a tax expert to answer basic tax questions, too. It Might Take 10 to 12 Times Salary for Retirement This year I've resolved to help my daughter get started on saving for retirement. She hasn't worked the types of jobs that have employer-provided savings plans, and a broken jaw and Hurricane Katrina meant a couple of prolonged periods without any work at all. Financial Futures Washington Post columnist Martha M. Hamilton discussed how to make smart retirement decisions with Anythony Webb from the Center for Retirement Research at Boston College. Identity Theft Gets Personal It had been a pleasant Saturday afternoon until I got the dreadful cellphone call. The woman on the other end said she was from Bank of America. I immediately thought she was going to offer me another credit card. I told her I was busy. Identity Theft Washington Post personal finance writer Nancy Trejos and Adam Levin, chairman of Identity Theft 911 LLC, discuss ways to protect yourself from identity theft. | |||||||||
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