Financial Literacy Archive

Alert…Were you affected by Epsilon data breach?

Tuesday, April 5th, 2011
Note: This incident does not directly involve First Savings online activity, and none of our customer data has been compromised. We are not a client of the online marketing company involved in the breach. However, it is likely that many of First Savings customers could be impacted by this incident, if they have online accounts with any of the other merchants or financial institutions involved.

 

This short update on the Epsilon breach was published April 5, 2010 by CNET, a respected online technology review site.  It contains good basic information on the breach and some good suggested precautions for consumers who feel they may have been impacted.

The list of customers affected by the Epsilon database breach continues to grow.

The breach, which took place last week but was announced over the weekend, compromised the e-mail addresses and some names belonging to the customers of many major U.S. companies that outsource their marketing and e-mail communications to Epsilon.

The company said Monday that 2 percent of the companies it counts as clients are affected by the security breach. There is no official list of affected companies that’s available, and a company spokesperson said Epsilon cannot release the names of its clients. Epsilon is in the midst of conducting an investigation of what led to the security breach.

The list of Epsilon clients whose customer e-mail addresses were stolen is not complete, and is likely to grow. But so far Target, Kroger, TiVo, US Bank, JPMorgan Chase, Capital One, Citi, Home Shopping Network, Ameriprise Financial, LL Bean Visa Card, McKinsey & Company, Ritz-Carlton Rewards, Marriott Rewards, New York & Company, Brookstone, Walgreens, The College Board, Disney Destinations, and Best Buy have notified their own customers about the breach. Hilton Hotels and Ethan Allen are also said to be affected.

Here are some tips on what to do if you did receive an e-mail from one of the companies above or if you believe one of them does have your e-mail or name, and what could happen next.

How do you know if you’re affected?
If you’ve ever given your e-mail address to any of the above companies, you probably are.

What will happen?
Most of the companies that are talking about it say the information that was stolen is limited to e-mail addresses and possibly names. Credit card companies and banks like Chase and Capital One say they do not believe any financial information was compromised.

But a bunch of e-mail addresses in the wrong hands means what’s likely to result is a rise in phishing scams. “Phishing” is an attempt to use e-mail to try to get you to reveal more personal information about yourself. This can include usernames, passwords, Social Security numbers, or account numbers.

Many times phishers are simply guessing and will pick a company that a broad group of people does business with, like PayPal, or a government entity, like the IRS. The threat in the Epsilon case is now whoever gets access to these lists of e-mail addresses knows exactly what companies count you as a customer. That means phishing attempts can be much more targeted and therefore potentially harder to spot because they can masquerade as being from a bank or company such as the ones listed above.

What should you do about it?
Do not open e-mail from someone you don’t know. That’s pretty simple. But you’ll also need to be extra vigilant now that phishers may know specifically where you shop, what airline you fly, or where you bank. Look at the e-mail address–if it’s purportedly from one of the companies above but ends in something other than .com, especially an international domain like .uk, that’s a good indication it’s a scam since most phishing attempts originate outside the U.S. Also be on the lookout for spelling errors in the e-mail address, URL, or body of the e-mail, or e-mails whose tone sounds particularly urgent.

If you do open the e-mail, don’t click any links. A common phishing practice is to ask people to click a link to update their personal information.

If in doubt, call the company
If you get an e-mail from one of the companies listed above asking for any information, and you’re unsure if it’s legitimate, you can always call them. Many retailers affected by the Epsilon breach are notifying their customers now that they would never ask for sensitive information via e-mail.

Read more: 

http://news.cnet.com/8301-31021_3-20050555-260.html#ixzz1IeXIHmfN

Basic Strategies for Simplifying Your Financial Life

Friday, February 25th, 2011

The FDIC suggests nine ways to eliminate clutter, organize accounts and streamline how you manage your money!  Follow this link to learn more:

http://www.fdic.gov/consumers/consumer/news/cnwin1011/strategies.html

Celebrate America Saves Week

Tuesday, February 22nd, 2011

Looking for a way to save more and spend less?  Here’s a link to a site that you may find interesting!  http://www.americasaves.org/

Buyer be (A)ware

Friday, February 11th, 2011

If your best friend just bought a new 3-D television and proclaimed how great it is and then suggested that you run out and buy one yourself would you?  On the other hand, if your best friend just bought 100 shares of a stock that they really liked, and told you how they’re going to make a killing in that stock and you should get some too, would you be more likely to run out to buy some? 

It doesn’t matter what you invest in, you should be aware of what you are investing in, and have a rational basis for investing in it.  By no means am I saying that you need to be a total expert in everything that you invest it, but make sure you do have knowledge about your investments.  Depending on the investment you are looking at, how much you should be looking into them will be dictated to you. 

For mutual funds or ETF’s, one doesn’t need to analyze each of the stock or bond holdings that their fund invests in (that is the job of the investment manager), but you should be aware of the mutual fund company, the managers, what the mutual fund invests in (or can’t invest in), its performance in up and down markets, and other fundamental factors associated with the management firm and fund itself. 

If you are looking to delve into an individual bond or stock, than the work-load and familiarity associated with this purchase will get larger and more complicated.  I once had a client instruct me to buy a security because “it was going to replace Microsoft”.  When I asked the client about the stock they wished to invest in, they didn’t really know what they did or their business model.  When I explained these to the client, the client no longer wished to purchase the stock.  If you are going to invest in an individual stock or bond, invest in what you know.  

As an example, if you are holiday shopping and go to 10 different stores, and one of these stores is significantly busier than the others, and you have noticed this in past years, you may want to look into that retail outlet further.  On the other hand if 2 of these stores has 90% of their registers closed with few patrons and this is a pattern you have noticed before, it is probably a troublesome sign, and before investing or holding that stock, a lot more comfort about their other operations would be needed. 

For those investors who do not take the time to familiarize themselves with their investments (or potential investments), they risk losing money or underperforming in their investments relative to the appropriate index.  The uninformed investor may get lucky once or twice, but the odds are they will lose more times than they will win.  Conversely, a well informed buyer doesn’t automatically mean a profit will be derived, but the decision to buy and subsequently hold or sell the investment will be based on information rather than emotion. 

Securities and products offered through First Savings Securities, Inc.  Member FINRA / SIPC

NOT FDIC INSURED – MAY LOSE VALUE – NO BANK GUARANTEE – NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations.  To determine which investment(s) are right for you, consult your financial advisor before investing.

FDIC Issues Consumer Phishing Alert

Thursday, January 13th, 2011

Federal Deposit Insurance Corporation

550 17th Street NW, Washington, D.C. 20429-9990 Division of Supervision and Consumer Protection

SA-10-2011
January 12, 2011

SPECIAL ALERT

SUBJECT: Consumer Alert
Summary: E-mails fraudulently claiming to be from the FDIC are attempting to get recipients to click on a link, which may ask them to provide sensitive personal information. These e-mails falsely indicate that FDIC deposit insurance is suspended until the requested customer information is provided.

The Federal Deposit Insurance Corporation (FDIC) has received numerous reports from consumers who received an e-mail that has the appearance of being sent from the FDIC. The e-mail informs the recipient that “in cooperation with the Department of Homeland Security, federal, state and local governments…” the FDIC has withdrawn deposit insurance from the recipient’s account “due to account activity that violates the Patriot Act.” It further states deposit insurance will remain suspended until identity and account information can be verified using a system called “IDVerify.” If consumers go to the link provided in the e-mail, it is suspected they will be asked for personal or confidential information, or malicious software may be loaded onto the recipient’s computer.

This e-mail is fraudulent. It was not sent by the FDIC. It is an attempt to obtain personal information from consumers. Financial institutions and consumers should NOT access the link provided within the body of the e-mail and should NOT under any circumstances provide any personal information through this media.

The FDIC is attempting to identify the source of the e-mails and disrupt the transmission. Until this is achieved, consumers are asked to report any similar attempts to obtain this information to the FDIC by sending information to alert@fdic.gov.
For your reference, FDIC Special Alerts may be accessed from the FDIC’s Web site at www.fdic.gov/news/news/SpecialAlert/2011/index.html. To learn how to automatically receive FDIC Special Alerts through e-mail, please visit www.fdic.gov/about/subscriptions/index.html.

Sandra L. Thompson
Director
Division of Supervision and Consumer Protection

Distribution: FDIC-Supervised Banks (Commercial and Savings)

Note: Paper copies of FDIC Special Alerts may be obtained through the FDIC’s Public Information Center, 877-275-3342 or 703-562-2200.