Top Scams of 2011

Where there is money to be had, there will always be con artists looking for new ways to scam you. Listed below are five top scam complaints to protect yourself against:

• Skimming is on the increase this year. Banks have been reporting a huge increase in ATM rigging. Criminals attach a device to the ATM that collects the card information or traps the card so they can use it. When using an ATM, always check around the machine for anything unusual before placing your card into the slot.

• Along with other economy related scams, such as loan modification and foreclosure rip offs, work-from-home scam complaints are becoming more prevalent. Con artists will state that the job requires the purchase of materials to begin working and claim you'll be reimbursed on your first check. Legitimate employers do not charge you for information, start-up kits, software or anything else related to the position. A few popular types of work-from-home scams to avoid are assembly, marketing and stuffing envelopes.

• Internet phishing is still a fast growing complaint with the advancement of more sophisticated malware and hacking of social networking accounts. These phishing scams steal your identity and financial information. Never open emails or links from unknown senders. It's also a good practice to change your passwords often.

• The simple, and less sophisticated, "doorstep" scams are easier to spot. Fake contractors, utility workers, charity collectors and others make the rounds from neighborhood to neighborhood. Simply ask the individual for ident ification, license number or a supervisors name and phone number to verify their identity.

• Vacation and travel related scams mainly target those who journey abroad. Fraudulent companies will book the traveler in sub-standard accommodations or disappear with their money altogether. Be wary of unsolicited offers and promotions as well as unknown callers. Only use established, well-known company websites. If you are suspicious of a deal, research the company and offer before giving out your credit card information.

Bank Fees Fuel Consumer Anger

People are angry at the proposed debit card fees and nearly one-in-three consumers say they will take their money elsewhere.

According to a new study by The Research Intelligence Group, 30% of banking customers say they will leave their institution should the bank start charging a monthly fee for debit card use. This anger is even more pronounced with younger (35%) or more affluent (37%) consumers.

Another 43% of consumers said they would choose a different method of payment. 28% said they would pay by cash, while 15% claimed they would use a credit card.

Regions and SunTrust have already started assessing a monthly fee on debit card usage. Bank of America will begin charging a $5 per month fee in 2012. Chase (one state) and Wells Fargo (five states) are testing this fee in various areas.

The survey was performed by The Research Intelligence Group from a representative sample of 1,000 U.S. adults in early October.

Consumers do not like paying a monthly fee for using their own money. These fees are also being assessed by some banks that we, the taxpayers, bailed out a few years ago.

Lawmakers are also upset.

After Wells Fargo announced a 21% increase in their third quarter profits, Senator Dick Durbin sent a letter asking the bank’s CEO to explain the need for a new debit fee. Durbin had previously sent a letter to Bank of America, reprimanding the bank after it announced plans to charge consumers for debit card usage.

Changing banks is a hassle that banks may count on

Customers frustrated by banks' controversial new fees are finding out what industry insiders have known for years: It is not so easy to disentangle your life from your bank.

The Internet banking services that have been sold to customers as conveniences, such as online bill paying, serve as powerful tethers that keep them from jumping to another institution.

Tedd Speck, 49, a market researcher in Kent, Conn., was furious about Bank of America's planned $5 monthly fee for debit card use. But he is staying put after being overwhelmed by the inconvenience of moving dozens of online bill paying arrangements to another bank.

"I'm really annoyed," he said, "but someone at Bank of America made that calculation and they made it right."

Former bankers and market researchers say that it's no accident. The steady expansion of online bill paying, they say, has emboldened Bank of America, as well as rivals such as Wells Fargo, JPMorgan Chase and SunTrust, to turn to new fees on customer accounts as other sources of revenue dry up. The fees have caused an uproar among consumers and drawn sharp criticism from politicians, including President Barack Obama.

"The technology locks you in, and they're keenly aware of it," said Robert Smith, who was chief executive of Security Pacific when it was bought by Bank of America in 1992. "It's very hard for consumers to just ditch that."

For years, banks have openly sought to attach as many loans and services such as credit cards, mortgages and mobile phone banking as they can to a customer.

What they haven't mentioned are marketing studies such as the one commissioned by Fiserv, which develops online bill paying systems, showing that using the Internet to pay bills, do automatic deductions and send electronic checks reduced customer turnover for banks by up to 95 percent in some cases.

The Occupy Wall Street protesters in New York have also jumped on the debit card fee as one more example of corporate greed. And activists are calling on account holders to switch to nonprofit credit unions en masse on Nov. 5, which they have named Bank Transfer Day; a Facebook page devoted to the effort has drawn more than 38,000 supporters.

 

As a result, the question of whether consumers will indeed vote with their feet is being closely watched by the banking industry, consumer advocates and legislators. The banks don't release detailed data on customer defections.

9 Things That may be Gone in our Lifetime

1. The Post Office. Get ready to imagine a world without the post office. They are so deeply in financial trouble that there is probably no way to sustain it long term. Email, Fed Ex, and UPS have just about wiped out the minimum revenue needed to keep the post office alive. Most of your mail every day is junk mail and bills.

2. The Check. Britain is already laying the groundwork to do away with checks by 2018. It costs the financial system billions of dollars a year to process checks. Plastic cards and online transactions will lead to the eventual demise of the check. This plays right into the death of the post office. If you never paid your bills by mail and never received them by mail, the post office would absolutely go out of business.

3. The Newspaper. The younger generation simply doesn't read the newspaper. They certainly don't subscribe to a daily delivered print edition. That may go the way of the milkman and the laundry man. As for reading the paper online, get ready to pay for it. The rise in mobile Internet devices and e-readers has caused all the newspaper and magazine publishers to form an alliance. They have met with Apple, Amazon, and the major cell phone companies to develop a model for paid subscription services.

4. The Book. You say you will never give up the physical book that you hold in your hand and turn the literal pages. I said the same thing about downloading music from iTunes. I wanted my hard copy CD. But I quickly changed my mind when I discovered that I could get albums for half the price without ever leaving home to get the latest music. The same thing will happen with books. You can browse a bookstore online and even read a preview chapter before you buy. And the price is less than half that of a real book. And think of the convenience! Once you start flicking your fingers on the screen instead of the book, you find that you are lost in the story, can't wait to see what happens next, and you forget that you're holding a gadget instead of a book.

5. The Land Line Telephone. Unless you have a large family and make a lot of local calls, you don't need it anymore. Most people keep it simply because they've always had it. But you are paying double charges for that extra service. All the cell phone companies will let you call customers using the same cell provider for no charge against your minutes

6. Music. This is one of the saddest parts of the change story. The music industry is dying a slow death. Not just because of illegal downloading. It's the lack of innovative new music being given a chance to get to the people who would like to hear it. Greed and corruption is the problem. The record labels and the radio conglomerates are simply self-destructing. Over 40% of the music purchased today is "catalog items," meaning traditional music that the public is familiar with. Older established artists. This is also true on the live concert circuit. To explore this fascinating and disturbing topic further, check out the book, "Appetite for Self-Destruction" by Steve Knopper, and the video documentary, "Before the Music Dies."

7. Television. Revenues to the networks are down dramatically. Not just because of the economy. People are watching TV and movies streamed from their computers. And they're playing games and doing lots of other things that take up the time that used to be spent watching TV. Prime time shows have degenerated down to lower than the lowest common denominator. Cable rates are skyrocketing and commercials run about every 4 minutes and 30 seconds. I say good riddance to most of it. It's time for the cable companies to be put out of our misery.. Let the people choose what they want to watch online and through Netflix.

8. The "Things" That You Own. Many of the very possessions that we used to own are still in our lives, but we may not actually own them in the future. They may simply reside in "the cloud." Today your computer has a hard drive and you store your pictures, music, movies, and documents. Your software is on a CD or DVD, and you can always re-install it if need be. But all of that is changing. Apple, Microsoft, and Google are all finishing up their latest "cloud services." That means that when you turn on a computer, the Internet will be built into the operating system. So, Windows, Google, and the Mac OS will be tied straight into the Internet. If you click an icon, it will open something in the Internet cloud. If you save something, it will be saved to the cloud. And you may pay a monthly subscription fee to the cloud provider. In this virtual world, you can access your music or your books, or your whatever from any laptop or handheld device. That's the good news. But, will you actually own any of this "stuff" or will it all be able to disappear at any moment in a big "Poof?" Will most of the things in our lives be disposable and whimsical? It makes you want to run to the closet and pull out that photo album, grab a book from the shelf, or open up a CD case and pull out the insert.

9. Privacy. If there ever was a concept that we can look back on nostalgically, it would be privacy. That's gone. It's been gone for a long time anyway. There are cameras on the street, in most of the buildings, and even built into your computer and cell phone. But you can be sure that 24/7, "They" know who you are and where you are, right down to the GPS coordinates, and the Google Street View. If you buy something, your habit is put into a zillion profiles, and your ads will change to reflect those habits. And "They" will try to get you to buy something else. Again and again.

All we will have that can't be changed are Memories.

Data Breaches Top List of Fraud Threats

Data breaches have overtaken the theft of physical assets as the No. 1 fraud type, with most data theft occurring in the financial services industry, according to Ken Otsuka, senior risk consultant for CUNA Mutual Group.

To avoid crippling financial damage and loss of member trust, credit unions must implement measures to prevent data breaches and have a solid mitigation plan if one occurs.

Otsuka, addressing CUNA Mutual’s Online Discovery Conference Tuesday, cited the 2010 Annual Global Fraud Report by the risk management consulting firm, Kroll.

The study indicated the information-rich financial services industry led the way in data theft incidents at 42% in 2010, up from 24% in 2009.

“Data breaches have quickly become a top concern,” Otsuka said. “They are increasing in frequency and severity in terms of number of records breached and recovery costs.”

Breaches can involve electronic data or paper and occur in many ways, including:

• Lost or stolen disks, laptops, and other data-bearing devices;
• Dishonest employees;
• System intrusions by hackers;
• Negligent disposal of data; and
• Breaches at third-party vendors housing confidential personal member data.

 A data breach can be devastating for a credit union, Otsuka said. A 2010 Ponemon Institute study stated the average cost to repair a compromised record was $214. For financial institutions, that cost was $353.

Read more at: http://www.creditunionmagazine.com/articles/data-breaches-top-list-of-fraud-threats

10 technological changes in 10 technological years

Have you realized how much things have changed in a mere decade.

My goddaughter is now of an age where she can talk, understand, and learn pretty well. She’s six, so she’s pretty on the ball with things already. The things that she experiences and sees are so different to mine, and she’s only 16 years younger than me. Times change quickly, I know, but it hit me like a wave of elderly welfare benefits disguised as a petrol tanker last night.

The differences between her generation and mine, even though separated by a few years, are stark and somewhat terrifying in hindsight.

1. There were nine planets in the solar system.

For years it was always nine planets and then one day, they decided it was either going to be eight, or about twenty. They chose eight. After seven years of primary education, the world I knew it was, well gone actually; they had just declassified it as a planet.

2. A BlackBerry was a fruit, and so was Apple.

I wouldn’t be too surprised if people heard either “blackberry” or “apple” and genuinely thought of the fruit. But I cannot seem to shake the association now built with my mobile device. People say, “have at least one of your five a day”, whilst I have my BlackBerry in my hand making a call. I’d say that counts, right?

3. To load up a program, you’d have to slam in a cassette tape and wait 20 minutes for it to load.

My first computer, a CPC-464. It was so heavy you could have used it as a concrete block in a mafioso novel. A ten year gap is a bit of an exaggeration but I knew people still word processing back then on green-screened computers. When the 5″ floppy disk came out, we saw that as a mini-revolution in itself.

4. You had to dial into the Internet.

You couldn’t just have the Internet flowing in and out of the computer like an out of control waterfall. No, you had to tell it to dial another computer and information would be sent to and fro through, what was essentially a computer-to-computer phone call. What’s even more weird is that it’s still available, even today.

5. A single gigabyte hard drive simply couldn’t be filled, through no will of trying.

My first computer bought for the family at Christmas 1996 (yes, it had Windows 95) had a 64MB memory and a single gigabyte of storage. My dad said, “we will never, ever fill that”.

6. Video tapes the size of Bibles would be the only way to record a television programme, and even then it’d only be able to record an hour and a half at best.

Even though I’m far too young to remember the Betamax vs. VHS war, I most certainly remember hoping to watch back an episode of The Simpsons which I’d recorded on the oldest VCR in the world, and it failing miserably with tape lodged and jammed in every bit. It was heartbreaking.

7. The only porn we could find was the shredded remains of a dirty magazine under a bush in the local park.

This generation of Internet kids has seen more porn than any other generation of children, ever. When I was a lad, one morning you’d be lucky enough to find a shred of it near where the local dirty old man sleeps in the evening. “Kids having kids… blame the parents”: no, blame the Internet.

8. There was only one computer in the house, and if there were more, only one would connect to the Internet at a time.

No such things as wireless back then. The only wireless you’d know of was the radio, and that would have been a main source of entertainment. It may sound like wartime England, 10 years ago wasn’t that far away. Windows XP hadn’t come out yet, I was still in a school uniform and the computers we used were running Windows NT.

9. There were no such things as flat screen televisions.

At least commercially, anyway. I come from a generation where our eyes are slightly closer together yet facing slightly the opposite way from being transfixed by a CRT television for all these years. And I laugh now at the “radiation warnings” from the sticker on the side of the box…

10. Twitter was called “text messaging” and the “tweet” only went to one other person.

Yes, a new phenomenon which many don’t realise that was basically text messaging. While sending a text is still far more popular than Twitter, the days where news would slowly seep its way through a friendship group (nowadays a “social network”), whereas now you can update literally anyone and everyone in the space of 160 characters.

A lot can happen in ten years.

HR-4646, The Debt Free America Act, Proposed a 1% Tax On All Financial Institution Transaction-Mostly Truth! But Never Passed!

Summary of the eRumor:

This is a forwarded email that says President Obama's finance team is planning to impose a 1% tax on all transactions conducted in financial institutions and that they plan to sneak it in after the November election.

The Truth:

There is a Congressional House Bill, HR-4646, the Debt Free America Act, that was introduced in Congress on February 23, 2010, but we have not found any evidence that the bill is being snuck in by any finance team members as the eRumor alleges.

Details at: http://www.truthorfiction.com/rumors/d/debt-free-America-act.htm

Do You Complain When You Get bad Service?

We've all been there -- ignored by a waitress, given the "wait a second" gesture by a clerk finishing a phone call. But instead of enduring it, you should let the management know about it. A report in Time magazine says that consumers experience disrespectful treatment about once a month.

And I am willing to bet that most of us do exactly what the magazine reports. (It's exactly how I react.)

Instead of complaining to a supervisor after being treated poorly, most disgruntled customers just go home and gripe to family and friends about their experience. The customer who was the initial target of the employee’s bad behavior is less likely to return to that business in the future. If they’re angry enough, they may abandon the brand entirely, and they’ve given their circle of acquaintances a heads-up to avoid it, too.

I avoid one big-box retailer at all costs because I've encountered too many surly clerks and gum-snapping cashiers. A department store is on my "don't shop there" list because I can never find an employee, and when I do, it seems they are usually on what sounds like a personal call and too busy to answer my question.

Even though it's been many years, I worked in retail for two years at a big box discount store in high school. Just as there are rude clerks and cashiers, there are rude and obnoxious customers, too.

When you get poor service or bad treatment in a retail business or restaurant, do you complain to a manager? Or do you endure it as a part of life? Is there one particular bad behavior that will send you in search of a manager?

Read more: http://www.stltoday.com/news/local/columns/talk-of-the-day/article_89524822-e83f-11e0-b885-0019bb30f31a.html#ixzz1Z5nbS0uJ

‘Extravagant’ Spending, $16 Muffins Found at U.S. Meetings

U.S. Justice Department agencies spent too much for food at conferences, in one case serving $16 muffins and in another dishing out beef Wellington appetizers that cost $7.32 per serving, an audit found.

“Some conferences featured costly meals, refreshments, and themed breaks that we believe were indicative of wasteful or extravagant spending,” the Justice Department’s inspector general wrote in a report released today.

The inspector general reviewed a sample of 10 Justice Department conferences held between October 2007 and September 2009 at a cost of $4.4 million. The Justice Department spent $73.3 million on conferences in fiscal 2009, compared with $47.8 million a year earlier, according to the report.

The muffins were served at a conference of the Executive Office for Immigration Review and the beef Wellington was offered at a meeting hosted by the Executive Office for U.S. Attorneys. A conference of the Office on Violence Against Women served Cracker Jacks, popcorn and candy bars at a single break, costing $32 per person, according to the report.

The report is a follow-up to one from 2007 that found the Justice Department had few controls to limit the costs of conference planning, food and beverages. That audit cited a reception that included Swedish meatballs costing $5 apiece.

What Do the Dress Descriptions Like “Business Casual,” “Summer Wedding,” “Cocktail Attire,” and “Black Tie” All Really Mean?

Fashion etiquette isn’t what it once was, but that doesn’t mean dress codes don’t apply. You probably won’t be shunned for wearing white after Labor Day, but showing up to a wedding sporting the latest Lady Gaga style probably isn’t a good idea. It can be hard to know just what the rules are for all of the various codes you see on invitations. To take the guesswork out of your next invite, just follow the basic rules in this helpful little primer.

Black Tie

Men don’t have actually have to wear a black tie, but they should wear a tux-- and the powder blue one with the ruffled shirt they wore to the prom back in 1976 won’t cut it. Women should wear a fancy-shmancy cocktail dress or long formal dress.

Formal

In most cases this means a monkey suit for the man again. If the invitation is to an uber hip party, where trendy counts, a tux with an expensive shirt but no tie might be acceptable. For women, the same rules as Black Tie apply.

Black Tie Optional

This is Black Tie with an out for those who can’t afford a tux or can’t fit into the one they have anymore. Men should go with a dark suit if they’re sans tux. Women should wear a nice cocktail dress or long gown.

White Tie

For the ultra high class party, the invite might designate White Tie. If someone puts this on their invitation, they mean it. Men should wear a white tie and vest with their tuxedo and women should wear a long formal gown. No cocktail dresses.

Semi-Formal

Semi-Formal means men are free of the tuxedo requirement but should wear a nice suit. A dark colored suit is preferred for evening events. Women don’t have to trip over long formal gowns for this one-- a cocktail dress in the evening or a nice dress during the day will suffice.

Business Formal

Business Formal has the same rules as Semi-Formal for men, but women should opt for more business-appropriate attire like a well-tailored suit.

Cocktail Attire

Dark suits for him and that little black dress for her.

Informal

Don’t let this one fool you. It does not mean come as you are, ripped jeans and all. It’s just another way of saying men should wear a suit and women should wear a dress. Think Cocktail or Business Formal.

Dressy Casual

Men should choose nice slacks and a sports coat. Women should wear a dress or nice pants suit.

Business Casual

Men can drop the blazer if they want, but should still wear nice pants and an oxford-style shirt. Women can wear dresses or skirts as long as they’re not too short or a nice pair of pants and blouse.

Casual

Finally, you can take out those jeans. You shouldn’t wear the stuff you clean your yard with, but something clean and without too many holes will do. These are your running errands or going to the movie clothes.

More information at: http://www.weisstoyotanews.com/Articles/Dress_Descriptions/

Coins Costing Taxpayers?

Federal government mints coins that nobody uses.

 

http://abcnews.go.com/WNT/video/coins-costing-taxpayers-14076274

 

Presidential One Dollar Coins.  Pretty dumb. 

Can the Post Office Survive the Digital Age?

An article earlier this year asked, "Is email killing the post office?" Well, the post office is not dead yet, but it's not helping from the looks of it. The U.S. Postal Service doesn't have the money it needs to pay its bills, and email and the web are clearly major factors.

Can the post office survive the digital age? 

A report from the New York Times is all but predicting the U.S. Postal Service's demise. "The agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances," the report says.

"If Congress doesn't act, we will default," Postmaster General Patrick R. Donahoe is quoted as saying.

When the subject was discussed , Bloomberg BusinessWeek had put out a lengthy report looking at the decline of the USPS and its contributing factors. While touching on email, it looked more at comparison of USPS performance versus that of FedEx, UPS and DHL, as well as their international counterparts.

Despite talk that social media might one day kill email, email has proven time and time again that it is still a vital part of the Internet. A report from Pew Internet recently found that email (along with search) is the top activity online adults engage in on the web - way more than social media (though that's growing significantly).

Facial Recognition is Unreal

Do you think this technology will make the perpetrators think a bit before starting riots? Or maybe they don't think - that is the point.

This is the crowd before the riot in Vancouver. Put your cursor anywhere in the crowd and double-click a couple of times and then use the scroll button in the centre of your mouse to zoom in . . . all the way in.

You can zero in on one single face. The clarity is unbelievable.

This is the photo taken by Port Moody photographer Ronnie Miranda that appeared in our Tri-City News on Friday (24-June).

This is actually scary. You can see - perfectly - the faces of every single individual - and there were thousands!

Privacy? Just think what the police and the military have at their disposal.

http://www.gigapixel.com/image/gigapan-canucks-g7.html

Available for your credit union? Yes, indeed. Many financial institutions - banks, credit unions, investment organizations, etc. already use this technology.  It's called "Facial Recognition."  Do a search on Google.com using FACIAL RECOGNITION.

Also check out the following:
Credit union lauds facial search application
http://www.securitysystemsnews.com/article/credit-union-lauds-facial-search-application

Members 1st VP: 'It really improves your relationship with a police force'
MECHANICSBURG, Pa.—Does facial recognition technology work? For Chip McBreen, vice president of fraud and security services at Members 1st Federal Credit Union it does. “It’s allowed me to gather additional information that I might not know is out there,” he said. “In a strict date and time search, I’m looking for a specific event and that’s what I’m getting. With the addition of facial recognition, I’m able to do an enterprise-wide search, allowing me to gather evidence that I just didn’t know about.”

http://www.securitysystemsnews.com/article/credit-union-lauds-facial-search-application

Credit Unions at the Crossroads (Must Reading)

FOR IMMEDIATE RELEASE

Media Contact:
Janine Williams, Vice President of Marketing
UVA Community Credit Union
434-964-2008

“Credit Unions at the Crossroads Symposium” Held at University of Virginia’s Darden School

August 25, 201l, Charlottesville, VA…The University of Virginia hosted 65 credit union leaders and academics from across the nation Aug. 10-12, at a unique gathering designed to help chart a course for the movement's future.

The Credit Unions at the Crossroads Symposium encouraged candid discussion on how to address the system's most-pressing issues, including slow growth in market share, reaching today's youth, addressing capital needs, key regulatory issues, and cooperation within the system.

"We all see the harsh realities of the marketplace," said Alison DeTuncq, CEO of the University of Virginia Community Credit Union, one of the Symposium's sponsors. "Many of us are painfully aware that our memberships are aging, that our regulatory burdens are growing, and that the traditional credit union business model poses its own unique challenges. The Symposium sought to lay a foundation on which we can build a research-based framework that answers the question: What's next for America's credit unions?"

During the coming months, the event's co-sponsors -- the University of Virginia's Darden School of Business and the McIntire School of Commerce -- will work with the Filene Research Institute to analyze information and audio recordings from the event, identifying current research from Filene that best speaks to the "credit union of the future," as well as topics that beg for new or additional research.

"Credit unions emerged from the financial crisis and the recession with a sense of urgency to better position themselves as a force within the financial services industry," said Dr. Ronald T. Wilcox, a professor at the University of Virginia's Darden School of Business. "The consumer finance landscape was changing long before the turmoil of the past few years; that change will only accelerate, forcing financial services providers to prove themselves by being innovative, responsive and adaptable. The credit union industry seems eager to accept that challenge and test its own limits."

Symposium presenters and panelists covered a wide variety of topics, including financial and market share trends for credit unions, the characteristics of top-performing credit unions and community banks, current credit union research that best speaks to the system's future, legislative and regulatory issues, credit unions' ability to adapt to the marketplace, marketing, the role of credit union service organizations and trade associations, staff development, governance and more.

Symposium participants were also strongly encouraged to offer their own unique insights on the system's future, and to examine and analyze their own ideas and opinions about the credit union system with a more informed and critical eye.

"The credit union industry has matured to a point that it needs answers to fundamental business questions," said Dr. George A. Overstreet Jr., a professor at the University of Virginia's McIntire School of Commerce. "Some of the industry's core values are being challenged; its business model faces real and significant threats; and credit unions are struggling for relevance among the next generation of Americans. Credit unions understand the stakes, and fortunately, there's neither a shortage of passion within credit unions, nor a shortage of capable leaders ready to blaze the trail for the industry's future."

-------------------

Comments from a former League President:

THE TITLE OF THE ARTICLE IS VERY APPROPRIATE. CU'S HAVE BEEN AT THE CROSSROADS FOR A NUMBER OF YEARS. IN MY HUMBLE OPINION, MANY HAVE TAKEN THE WRONG ROAD.


BACK IN THE "OLD DAYS" OF THE MID 90'S I WAS A MEMBER OF CUNA'S "RISK COMMISSION". IT WAS A HIGH LEVEL THINK TANK OF CU LEADERS FROM ACROSS THE COUNTRY CHAIRED BY ADMIRAL JOE SCOGGINS, FORMER CEO OF NAVY FEDERAL. ( NEVER DID FIGURE OUT WHY I WAS ON IT.) WE MET EVERY 6 MONTHS OR SO TO IDENTIFY THE KINDS OF RISKS THAT COULD POSSIBLY BRING DOWN THE SYSTEM. E.G. FAILURE OF HUGE AMERICAN BANKS, FAILURE OF U.S. CENTRAL, FAILURE OF EUROPEAN MONETARY SYSTEM, STOCK MARKET CRASH, HUGE POWER FAILURES, ETC. ALL GLOOM AND DOOM.

WHILE ALL KINDS OF EVENTS WOULD SEVERELY DAMAGE CREDIT UNIONS, AT THE TOP OF OUR LIST--EVERY TIME WE REPORTED TO THE MOVEMENT--THE GREATEST RISK TO THE CREDIT UNION MOVEMENT WAS ...IF WE LOST OUR SENSE OF PURPOSE. THE NON-PROFIT, MEMBER FOCUSED PURPOSE OF A CREDIT UNION WAS FUNDAMENTAL TO SURVIVAL. TOO BAD THE MOVEMENT DIDN'T HEED THE ADVICE OF OUR COMMISSION.

CREDIT UNIONS NEED TO RETURN TO FUNDAMENTALS. GO BACK TO BEING MEMBER DRIVEN--NOT REGULATOR AND BOTTOM LINE DRIVEN.

THEY NEED TO RE-LOOK AT THE SIGNS AT THE CROSSROADS... AND CHOOSE THE RIGHT ROAD.

HAGERBAUMER on Interest Rates

Comments from Jim Hagerbaumer, Economist

Concluding remarks and food for thought.

• It now becomes inconceivable that the Fed will hike anytime before 2013.

• Monetary and fiscal policy are out of ammo. There will be no cavalry riding to the rescue.

• The Dow has wandered all over the reservation today – a sign of confusion and of what to expect in the months ahead.

• The country is bereft of any leadership whatsoever that understands what is going on.

• Growth of 2% or less the next year and beyond absolutely implies a rising unemployment rate.

• You are going to see a flurry of badly-designed, incoherent, counterproductive policies floated by this White House and Congresspersons on both sides of the aisle who want more than anything to get reelected as the reality of what I am saying here sinks in.

• Never in your business career has it been more important to access the creativity of your own brain and those of your staff. Hard prudential running of “the bank” will be well served and complemented by ideas you never entertained before. But so it must be to prosper in an environment you never before have experienced either!

Jim Hagerbaumer, Ph.D.
hagerbm@tampabay.rr.com
813-792-7624

Voice Biometrics Planned at Desert Schools FCU

This set-up screen asks the member to call in and make the initital recording of the voice to be verified later. The $2.8 billion Desert Schools FCU in Phoenix is the first financial institution to use a new voice biometrics solution from Finivation Software of New York City.

The VoiceVerify solution can be used to verify a caller’s identity either through an IVR or when working with a live agent, and will be used for high-risk transactions such as wire and ACH transfers and password re-sets, the company and credit union said.

“We plan to use VoiceVerify in several ways – initially for 24/7 password resets for online banking followed by out-of-band authentication for transfers. We also hope to leverage the technology to make it faster for members to authenticate in the contact center while simultaneously reducing the chance for social engineering,” said Gary Laieski, CIO for the 342,000-member Desert Schools FCU.

“Voice biometrics’ advantage over other biometric and security solutions is the fact that a person can be verified remotely, so it is perfect for the contact center as well as online and mobile banking,” said Finivation CEO Brian Bodell. “Users don’t need any special hardware or software, and they don’t need any training to use their voice.”

Desert Schools said it plans to begin using the service this fall. The added security also will help it meet new FFIEC guidance for expanded authentication, the company and credit union said.

Firms enlist smartphones to provide cyber security

Companies are enlisting smartphones as another layer of protection, say security professionals, because they are cheaper and their widespread popularity makes it easier for firms to reach a broad swath of customers.

“People can forget their keys and lunch at home, but no one forgets their phone,’’ said Ward Howell, director of security solutions consulting at Q2ebanking, an Austin, Texas, firm that provides banking services to regional banks and credit unions.

Software can turn smartphones into security tokens that spit out new passwords frequently like RSA’s popular SecurID key fobs.

Companies are taking a closer look at how they guard access to data after hackers broke into RSA, Hopkinton-based EMC Corp.’s security division, and used the stolen information to hack into computer networks at defense contractor Lockheed Martin Corp.

Adding to the urgency are new federal guidelines that require financial institutions to tighten security around online banking.

Lenders, such as Bank of America Corp. and JPMorgan Chase & Co., already send texts to consumers on their mobile phones.

These messages may notify credit card users of account activity or flag big ticket purchases; consumers may also use their smartphones to pay bills.

But a smartphone can do more, say security professionals. Using one like a security key fob is as simple as downloading an app, said Brendon Wilson, a senior product marketing manager of user authentication at Symantec Corp., a computer security software maker in Mountain View, Calif. “And for the company, there’s no expenditure on a separate token.’’

This allows companies to do away with traditional physical tokens, such as SecurID key fobs. After the March data breach, RSA offered to replace a portion of the SecurID tokens or provide security monitoring. The company said some customers are showing an appetite to replace their security tokens with virtual ones on smartphones.

The cyberattack on RSA had a silver lining. It fueled “new conversations with customers, and it’s not a conversation on just security tokens - it’s a conversation on security,’’ said Sean Brady, director of RSA’s identity management and protection group. “We are at a market inflection point for companies as they review user identification strategies.’’

Read more at: http://www.boston.com/business/technology/articles/2011/08/03/firms_enlist_smartphones_to_provide_cyber_security/

Words of Wisdom: Holding a Glass of Water

A young lady confidently walked around the room while leading and explaining stress management to an audience; with a raised glass of water, and everyone knew she was going to ask the ultimate question, 'half empty or half full?'..... she fooled them all... "How heavy is this glass of water?", she inquired with a smile.

Answers called out ranged from 8 oz. to 20 oz.

She replied, "The absolute weight doesn't matter. It depends on how long I hold it. If I hold it for a minute, that's not a problem. If I hold it for an hour, I'll have an ache in my right arm. If I hold it for a day, you'll have to call an ambulance. In each case it's the same weight, but the longer I hold it, the heavier it becomes."

She continued, "and that's the way it is with stress. If we carry our burdens all the time, sooner or later, as the burden becomes increasingly heavy, we won't be able to carry on."

"As with the glass of water, you have to put it down for a while and rest before holding it again. When we're refreshed, we can carry on with the burden - holding stress longer and better each time practiced.

So, as early in the evening as you can, put all your burdens down. Don't carry them through the evening and into the night... pick them up tomorrow.

Whatever burdens you're carrying now, let them down for a moment. Relax, pick them up later after you've rested. Life is short. Enjoy it and the now 'supposed' stress that you've conquered!"

1 * Accept the fact that some days you're the pigeon, and some days you're the statue!

2 * Always keep your words soft and sweet, just in case you have to eat them.

3 * Always read stuff that will make you look good if you die in the middle of it.

4 * Drive carefully... It's not only cars that can be recalled by their Maker..

5 * If you can't be kind, at least have the decency to be vague

6 * If you lend someone $20 and never see that person again, it was probably worth it..

7 * It may be that your sole purpose in life is simply to serve as a warning to others.

8 * Never buy a car you can't push.

9 * Never put both feet in your mouth at the same time, because then you won't have a leg to stand on.

10 * Nobody cares if you can't dance well. Just get up and dance.

11 * Since it's the early worm that gets eaten by the bird, sleep late.

12 * The second mouse gets the cheese.

13 * When everything's coming your way, you're in the wrong lane.

14 * Birthdays are good for you. The more you have, the longer you live.

15 * You may be only one person in the world, but you may also be the world to one person.

16 * Some mistakes are too much fun to make only once.

17 * We could learn a lot from crayons. Some are sharp, some are pretty and some are dull. Some have weird names and all are different colors, but they all have to live in the same box.

18 * A truly happy person is one who can enjoy the scenery on a detour.

6 Major Office Distractions

Sound Design

When it comes to creating a productive office environment—it’s more than just four walls. According to a Cornell University study, even low-level noise in open-style offices can result in higher levels of stress and lower task motivation. If you’re going to go with an open office plan, be sure to think about where you place employees who operate at higher decibel levels. Also keep in mind placement of loud appliances such as copy machines.

Tech Intrusion

Nearly 60 percent of work interruptions are—you guessed it—thanks to the Internet. Yes, you can blame Fail Blog for not getting your work done. And don’t forget the time spent on social media, e-mail, and switching back and forth between on-screen applications. According to a survey by market research firm uSamp, while social media use can encourage coordination among employees, there’s no denying it’s a huge distraction

Watch That Dial

Room temperature can directly influence productivity at work. Cornell University studied the effect of increasing temperatures in the workplace from 68 degrees to 77 degrees. Errors at the company fell by 44 percent and typing output increased 150 percent with the increased temperatures. Another study indicates that an office can also be too hot—with a loss in performance at temperatures higher than 75.2 degrees.

Social Butterfly

Telephone calls, walk-in clients, that talkative colleague across the way: Unplanned conversations can have a dramatic affect on productivity in the workplace. Phone calls, talking with co-workers, and impromptu meetings make up 43 percent of work interruptions, according to a market research survey.

Sitting Pretty

The design of office workstations is often linked to health, comfort, and productivity in the workplace. Chairs that are not adjustable and desks that are too small can cause sore backs and contribute to carpal tunnel syndrome. A study coordinated by Health and Work Outcomes, an independent health research and consulting company for office furniture manufacturer Steelcase, found that individuals who received office ergonomic training and sat in a highly adjustable chair increased average productivity by 17.8 percent after a year.

Space Matters

The Wall Street Journal recently published findings from a number of worldwide studies suggesting the space around your workstation could affect not only your productivity, but the style of work you accomplish. Low ceilings encourage analytical thinking, while high ceilings can encourage abstract thought and creativity. Color and light can also change the way we think. Surrounding workers with red walls could stifle creativity, but fuel inside-the-box thinking for tasks that call for small details and accuracy.

Transfer to Technology

Don’t think you can afford a top tier online banking platform yet? Consider the alternatives. A recent FMSI study indicates teller labor costs have increased by 64% in the last ten years, while transaction volumes have decreased 31% in the same timeframe as customer preferences changed and new technology options became available.

From online knowledge databases to online banking and remote tellers, technology takes some heat off front line staff, reduces staffing demands, and allows you to focus on a better member experience and streamlined performance with those you do have on the clock.

Read a lot more at: http://www.creditunions.com/article.aspx?articleid=4510&wt.mc_id=II071911

Celent Study Finds Small CUs 'Overwhelmed'

http://www.cutimes.com/2011/07/15/celent-study-finds-small-cus-overwhelmed
By Jim Rubenstein

A new study issued this week by Celent, the Boston financial research and consulting firm, is finding small credit unions “overwhelmed” by the complexity of technology and competition.

The study, “Tipping Scale: Credit Union Consolidation”, is based on NCUA data from 2010 and found CUs under $50 million “are disappearing”, though the industry as a whole appears to be adjusting to the new environment.

“What is driving this change?” asked the report co-author, Bart Narter, senior vice president. “Competition driven by demand for mobile banking, consumer and business remote deposit capture and branch capture.”

The study found that smaller CUs “don’t have the scale to create these offerings and even the larger credit unions dwarfed by the size of their bank competitors are finding it difficult to keep up.”

In the past, “credit unions simply required a branch or two, a core banking system and ATM but in the past 10 years “Internet banking, bill pay, know your customers and office of foreign assets control compliance” have all become “table stakes,” Narter said.

In reporting on the CU diminishment, the study noted that the number of CUs in the U.S. “is declining rapidly from 10,316 at the end of 2,000 to 7,330 at the end of 2010.”

The vast majority of this consolidation “is taking place in the smaller credit union with assets under $50 million. However, CUs over $500 million “are vastly outgrowing any other category relative to their tier,” the Celent report said.

Celent, which has done most of its work on the banking sector, said this is the third recent report on credit unions, with the previous two covering core data processing at both large and small CUs.

It's Been a Rough Year

But not everyone is as lucky as I am ......

The economy is so bad that I got a pre-declined credit card in the mail.

I ordered a burger at McDonald's, and the kid behind the counter asked, "Can you afford fries with that?"

CEO's are now playing miniature golf.

If the bank returns your check marked “Insufficient Funds," you have to call them and ask if they mean you or them.

Hot Wheels and Matchbox stocks are trading higher than GM.

McDonald's is selling the 1/4 ‘ouncer’.

Parents in Beverly Hills and Malibu are firing their nannies and learning their children's names.

A truckload of Americans was caught sneaking into Mexico.

Dick Cheney took his stockbroker hunting.

Motel Six won't leave the light on anymore.

The Mafia is laying off judges.

Exxon-Mobil laid off 25 Congressmen.

Congress says they are looking into the Bernard Madoff scandal. Oh Great!! The guy who made $50 Billion disappear is being investigated by the people who made $1.5 Trillion disappear!

And, finally...

I was so depressed last night thinking about the economy, wars, jobs, my savings, Social Security, retirement funds, and our bleak future, that I called the Suicide Lifeline and was connected to a call center in Pakistan. When I told them I was suicidal, they got all excited, and asked if I could drive a truck.

At 101, Harry Hahn retires from CUs

ERIE, Pa.   After 60 years associated with credit unions, Harry Hahn, 101 has finally decided to retire, according to Erie Times-News (July 10).

Hahn, who will turn 102 on Aug. 9, formally retired last month as a nonvoting director emeritus of the Erie (Pa.) FCU to spend more time with his bride, Theresa, age 92, whom he married late last year.

Hahn--described by Erie FCU CEO Mary Beth Wilcher as having a "little hearing problem" but as "sharp as a tack"--also worked with Hammermill Employees FCU, where he served as board director, treasurer and supervisory committee member, before its merger with Erie FCU.

He also was active in the Pennsylvania Credit Union Association (PCUA) and served on its board of directors for 15 years. He received its Lifetime Achievement Award and was its Volunteer of the Year.

Jim McCormack, president/CEO of PCUA, described Hahn as humble, low-key and sincere. Hahn was a mentor to many, he said. "I owe so much to him, and a lot of people in Erie and the state would say the same thing," he said.

Conference: Serving Your Members in the 21st Century

Have you marked your calendar yet?

Nov. 7-10, 2011

Palm Springs, CA

http://cuconferences.com/11Reach/2011%20Reaching%20Final6_17_11.pdf

“Reaching Your Members in the 21st Century” brings you new ideas with practical results. More details coming your way.

Guest Presenters 

Tom Glatt, Jr.

Glatt Consulting, LLC

Sean McDonald, VP Marketing

Hudson Heritage FCU

Paul Robert, CCO

FI Strategies, LLC

Kevin Blair, Pres.

NewGround

June News and Views Published Below

CU SECURITY & TECHNOLOGY News - Providing a brief summary of news and information related to security and technology issues for credit unions - Plus some interesting and fun web sites . . .

(Click on photo to enlarge)

Lax Hotel Network Security Leads to Credit Fraud

Have you ever wondered what happens to your credit card information after it’s swiped at the hotel front desk? New York Times reporter Joe Sharkey knows. Sharkey told petergreenberg.com that he discovered a small unauthorized merchant charge on his credit card the same day he checked out of the Arizona Biltmore in Phoenix. It wasn’t the first time. Earlier, Sharkey reported in The New York Times that he and his wife had their credit card accounts compromised following hotel stays. In both cases, hackers made multiple small unauthorized purchases. Why were the charges small, you might ask? That’s how hackers check whether card holders are paying attention and whether credit card accounts are vulnerable.

Hackers Are the Hotel Industry’s Frequent Uninvited Guests

According to a 2011 Global Survey Report released by Trustwave SpiderLabs, Sharkey has plenty of company. The report shows that one in ten of the data breaches that Trustwave investigated in 2010 happened in the hotel industry. If you’re a frequent hotel guest, that’s not good news.

Hotel hacking that leads to credit fraud seems to be as easy as shooting ducks in a barrel. The reasons: Point of sale devices are vulnerable; there’s huge volume of credit card transactions; and credit card information is retained for reservations and loyalty programs.

Unsecured hotel wireless networks at hotels have also proven to be an ideal place for hackers to commit a variety of other crimes. At the luxury Thompson Hotel chain, a hacker captured embarrassing emails belonging to guests and staff members that were transmitted over its wireless network and threatened to make them public.

In many states across the country, hackers staying at hotels or parked nearby have used the anonymity of hotel wireless networks to download kiddie porn.

Guests looking to use their hotel’s wireless Internet may face another security threat. In 2010, The CBS Early Show had an ethical hacker set up a fake WiFi access point at a New York City hotel, calling it “Best Free Public WiFi.” Before long, dozens of unsuspecting wireless device users tried to log on. When an unsuspecting hotel guest connects to a rogue WiFi access point like that, his sensitive financial information can be harvested by a hacker.

How to Hide From Hotel Hackers

Remember, staying at a nice hotel with good security doesn’t guarantee that your financial information will be safe from hackers. Here’s what you can do to protect your most valuable possession – your identity.

• Find out what your hotel is doing to protect your credit card information. Ask whether its wireless network uses WPA (WiFi Protected Access) encryption. It requires a password to get onto the network and encrypts all the information transmitted on it. This prevents eavesdropping over wireless. But it may not stop other guests connected to the same hotspot from stealing your information.

• Watch out for Evin Twins. Some WiFi networks you spot at hotels may look like the real thing. They may even contain your hotel’s name. But they can still be rogue access points created by hackers to steal your data. Check with the establishment to make sure which network is the real one.

• Always assume you’re not alone on any public WiFi network. Disable file sharing; and never send Social Security numbers or financial information when over a wireless connection.

• Use a credit card instead of a debit card at hotels so your bank account will be protected.

• Use a VPN (virtual private network) like Private WiFi to ensure that the information transmitted over your WiFi connection is invisible to hackers.

Jan Legnitto is an investigative journalist and documentary producer who writes about criminal justice and intelligence issues.

Five Things You Must Know about Airport Security

Here are five things you must know about airport security; this list will help keep things in perspective next time you hear another outrage story, plus it may even help you have a quicker and easier security experience.

1. Airport Security Mistakes Happen.

TSA screeners are human; they will make mistakes. However, the vast majority of these men and women are simply following the rules they are bound by. If you don’t like the rules, and I for one think they could use a huge dose of common sense, take it out on the politicians, not the screeners. (Click on photos to enlarge)

2. Airport Security Mistakes are Few

Stories of outrage make news: when a former Miss USA described her pat-down as “molestation”, people paid attention. Still, in the United States alone, 2 million people get on planes every day; that’s almost three-quarters of a billion a year. The number of “outrages” is miniscule in comparison.

3. Know the Security Checkpoint Requirements

Passengers have security responsibilities too, and following them will speed your time in the line; know what you can and cannot bring through the security checkpoint. Forget arguing about it; you will not win.

4. Security Changes are Coming

By the end of 2011, the TSA hopes to have a “trusted traveler” program in place, or at least in testing-mode: participants who agree to background checks and interviews will supposedly breeze through security. According to the U.S. Travel Association, a majority of passengers say they’d pay for this service, up to $150 a year. Would you pay for quicker security?

5. Airport Security Will Never be Completely Hassle-Free

If you yearn for the good old days of zipping through the airport, forget it. We’ll never go back. The people behind 9/11 saw to that. All we can do is make the best of a difficult situation. Yes, report any outrages you see, but also do your part to make the security experience a smooth one for you and all the people in line behind you.

How to Get Your Messages Read

The first challenge in the 3 R’s – get your prospects to rip it open is one of the toughest. It’s no wonder. From the moment we wake up in the morning to the time we lay down to sleep, we’re bombarded with advertising messages.

The real question is, “How do you get past that so your message stands out from the rest?”

Get ready to see your sales explode with this unique dynamite tube. Just include your sales message inside and it's guaranteed to be included in the A-Pile of mail.

One strategy that we find to be very effective, and again we’re going on the assumption that you have a semi-qualified list, is lumpy mail. Lumpy mail is a term I use to describe mail that is unusual shape or size and makes you want to open it just to find out what it is. It will actually overcome the first of those main problems, which is just getting the stuff opened.

6 "Lumpy Mail" ideas to get your offer opened

There are so many fun and wonderful strategies that you can get it opened. One thing that you can do is, as we say, “Add a lump and get a bump in response.” You can actually make the carrier unusual. Here are six of my favorites:

1. Send your marketing in a mailing tube.

There are several different things you can do with a tube. You can make it like a dynamite stick and have a little wick sticking out with a message that says: Get ready to see your sales explode! We actually got a call from this right after 9/11. It was very funny. I was giving a seminar and it was a week and a-half after 9/11. This guy stood up and said, “I just used your stuff,” and 250 people turned to the back of the room. “I sent out a dynamite stick last week after 9/11.” Jon, I have to tell you, it’s the best response I’ve received in my life.”

2. Be creative. Mail a watermelon?

One of the lumpiest of all mailers that we sent, which got us quite a bit of attention, generated more than a 90% response rate. We sent a watermelon. We placed a clear envelope on the outside of the watermelon with a bunch of stamps and sent it. It’s expensive to mail, but I want to illustrate how you can be creative in direct marketing.

Think your message will get noticed if you sent it with a watermelon? You bet it will! If you would like to know more about this or any other creative Lumpy Mail idea give us a call toll-FREE at 800-805-1220.

3. Tie it to a balloon and watch your response rate soar.

We once did a mailing that got a 31% response for IBM. It was a pre-show mailer to sell exhibit spaces. One of the things that we sent was a box that was about 18 inches wide. When you open the box, a helium balloon rises up tied to a string and a package of Red Hots candy. (If you’re interested in doing this, check with us first. When balloons are shipped over the Rocky Mountains, all the helium deflates so we have two distribution centers on both sides of the Rockies to handle the shipments.)

4. Put your message in a bottle and send it out.

This mailing has generated 60% response rates. Just include your message in the bottle and you'll get noticed right away!

Another popular promotion is what we call, “Message in a Bottle.” The package looks like a wine bottle. The message is rolled up inside and attached to the cap so it can be pulled out easily by the prospect. The message begins by saying, “Don’t get left stranded…” or “Enclosed is your treasure map…” I’ve seen this get 60% response rates for seminar mailings.

5. A briefcase makes a terrific high-end package.

One client, Info Now that has products with an average sale of $100,000, actually sent a metal Halliburton briefcase to CIOs, CEOs and CFOs at Fortune 500 Companies. When you opened the briefcase, a laptop inside automatically started running a video presentation. Next to the laptop was a Nokia cell phone. At the end of the presentation, it said, “Press send.” The promotion generated a 55% response rate and of those, 50% converted to a sale.

6. Handwritten address with a live stamp ... simple, but effective!

Simply address the envelope with what looks like a handwritten address and add a commemorative stamp – not a bulk mail stamp. The problem with handwritten addresses is that they can be slow and expensive, but after nearly two years of searching we finally found software that looks just like the real thing! This is important because 83% of your prospects will open a hand-addressed envelope. Tip: don’t include a return address when you use a handwritten address. It will be intriguing enough that people will have to open it.

Automated Deposits Twice as Fast

Banks and credit unions continue to look for new ways to build their brands through improved customer service. NCR Corporation is seeing significant momentum from financial institutions around its new ATM technology that makes automated deposits twice as fast. You've likely heard (or written) about Wells Fargo and Chase's deployment of NCR's scalable deposit module -- but banks and CUs both large and small are turning to this technology.

NCR has already received orders for 7,000 ATMs with SDM in the U.S., and are in the process of rolling out this technology in other countries. NCR also announced today that many major ATM networks have completed their certification testing of SDM on their systems.

Another Cell Phone Scam

There's a number of solicitations making the rounds these days in an effort to obtain your cell phone number. These are scams and opens the door for viruses to attack your cell phone. Here's a good one. Pule is a friend of mine so I recognize his name, but as soon as the pop-up asked for my cell number, I canceled the transaction. It's fake.

BIG Phone Scam in the Works

What's the weakest link in your security? You are! When your phone rings don't believe anything you hear. That Microsoft employee you're talking to could be eating sardines and swigging vodka while he helps remove you from your money.

Evidently computer viruses and trojans are working so well, it seems scammers have enough time to launch a new form of attack. Getting up front and personal they are now attacking us through our phone. Posing as Microsoft tech support, they gain personal and financial information by instructing you, their victim, to setup and allow remote access under the guise of removing computer threats.

If people would only stop and think a minute they would realize that Microsoft doesn't know if their computer has a virus, and they certainly don't know their phone number. When everyone else is charging for even a moment of their time, do you think Microsoft is going to give you free trouble shooting by remote access. Obviously these crooks are counting on the most vulnerable in our society. They don't mind that 85% of the people they call hang up on them. It's the 15% that are paying their bills.

For you and I remote access is commonplace. We know how to do it and we know to be careful when allowing it. Some major companies use remote access now to help their customers with wireless connections and setting up home networks. For those less wary the offer of remote access seems genuine. Remote access is exciting, until they see their credit card bills. Then the fun is gone along with their money.

For now the scam is taking place in English speaking UK and North America. The scammers advise the victims that their computers are infected, show them bogus errors, direct them to a website, and walk them through making a purchase and installing tracking software. The average loss exceeds $800.00.

This has been a huge and surprisingly successful scam and Microsoft expects it to get even bigger and spread to other nations and languages.

Fortunately in my case, I hung up on the thief at the other end, but not everyone is that guarded. The Microsoft Trustworthy Computing Team did a survey of the involved area and discovered that out of 7000 people, more than 1,000 had received this type of call. Of the 1,000, 234 fell for the scam and followed the instructions. Of those, 184 actually lost money to the crooks. This means you have a 1 in 7 chance of being called. How do you like that for a phone campaign?

A problem this big requires that you be prepared ahead of time in order to avoid losing your hard earned cash. It requires only one rule and I'm putting it in bold below. Follow this one rule and all attempted phone scams are stopped dead.