GOLETA, Calif., Oct 28, 2008 /PRNewswire via COMTEX/ -- Software Runs Securely on the Computer to Keep Sensitive Financial Data Away From Online Threats, While Automatically Helping Consumers and Businesses Stay on Top of Credit Card Rates, Payments, and Fees
GOLETA, Calif., Oct. 28 /PRNewswire/ -- My Best Interest, Inc. today announced the general availability launch of Rate Surfer ( www.ratesurfer.com), a desktop console for secure and simple credit card management. Offered as a free download, Rate Surfer Basic lets consumers and businesses take back control of their finances by making it easy for them to maintain their credit cards at the lowest possible interest rates, at all times - helping to save money, avoid fees, and preserve credit scores.
Rate Surfer offers a simple dashboard that allows users to view all of their credit card details in one place. With the touch of a button, they can easily find lower interest rates, transfer credit card balances, request credit line increases, dispute charges, and more.
Rate Surfer also provides a range of "push" information services, with automatic SMS and email notifications to alert users if they are nearing their credit limit, payment due date, or the expiration of a promotional interest rate. Sensitive financial data remains on the computer at all times and is never stored on the Internet or a web server - ensuring that it remains safe and confidential at all times.
"Properly managing your personal or business credit is going to be critical to surviving today's volatile, ever-changing financial market conditions," said Mitch Calderwood, CEO and founder of My Best Interest. "Rate Surfer makes this easy by simplifying and automating complete credit card management. Our goal is not only to help users save money and preserve their credit scores, but also to give them the peace of mind that their identity and personal financial data remains secure at all times."
How It Works
Instead of requiring users to enter their financial data online to access information, Rate Surfer brings the information to them. The application automatically interacts with most all of the major card issuing banks to transfer securely a user's financial data onto the desktop, using the same state-of-the-art anti-fraud and encryption capabilities as leading financial institutions use for online banking. Once there, Rate Surfer streams only non-sensitive information - such as balances and due dates - onto an online server for processing through the patent-pending Rate Surfer algorithms, which identify the lowest interest rates, special promotions, and more. This information is then made visible in the desktop console, for users to view - and most importantly, act on - with a single click.

source : http://www.marketwatch.com

Money Moves You Should Make Now

Last week's volatile stock market suggests that economic woes are far from over. After Monday's record gain was followed by triple-digit ups and downs, it's clear no one is out of the woods yet.

And with no certainty that efforts to rescue the global financial system will work, with unemployment on the rise and with the stock market still 38% off its 2007 high, it's time to protect your finances.

Here are four smart money moves to make now:

Create a Budget

"Watch every dime coming into your house, because tomorrow it could be a nickel," warns Catherine Williams, vice president of financial literacy for Money Management International, which oversees nonprofit credit-counseling agencies. The best way to do that? Stick to a budget.

The basic premise of a budget is, of course, simple: Make sure expenses don't exceed income. But you also need to find a way to squeeze out some savings, says Donald Ray Haas, a financial planner in Birmingham, Mich.

Check your budget breakdown against these rough guidelines from Money Management International's Consumer Credit Counseling Services: savings (10% minimum); housing (20-35%); food (15-30%); transportation (6-20%); medical (2-8%); insurance (4-6%); utilities (4-7%); clothing (3-10%); personal care (2-4%); miscellaneous items (1-4%); personal debt (20% maximum).

Eliminate Debt

If the stock market has you spooked, you can get a nearly unbeatable return by focusing on paying off debts instead.

Credit cards: Attack high-interest-rate credit cards by seeking out the cheapest rates you can find, says Scott Bilker, founder of DebtSmart.com. Look to credit unions, which tend to offer more favorable rates than big-name banks.

Mortgages: Prepaying your mortgage may not be a bad idea. Generally speaking, mortgage debt is cheap debt, but prepaying can give you an after-tax return that is a lot better than what most folks have earned in the stock market this year.

source : http://online.wsj.com

Discount home loans with frills

Banking packages that combine a mortgage, transaction account and credit card with the one institution are the best value on the home-lending market. Packages offer a discount to the advertised rate and the saving on the interest more than covers the package fee. The bundling of services also offers convenience.

This is the view of banking industry research group Cannex, which says institutions offering packages have made them more attractive by varying them to benefit a wider spectrum of borrowers.

Cannex says more than half of all new mortgages written by the major banks are "super sized" to packages.

Borrowers like them because they get the features of a standard variable-rate loan (and, increasingly, other types of loans) at the discounted price of a basic variable-rate loan.

Discounts are 0.4 to 0.7 percentage points, depending on the size of the loan. At one stage last year some brokers were given discretion to offer discounts of as much as 0.9 percentage points but with the general tightening in the market, those deals are now hard to find.

Assuming an advertised standard variable rate of 9.47 per cent, a $150,000 loan with a 0.4 percentage point discount will reduce interest by $500 a year. A loan of $250,000 may attract a 0.7 per cent discount and will save $1500 a year. The annual fee is between $250 and $500 but this is less than the savings from the discount.

Traditionally aimed at typical home-buyers, package banking has broadened its appeal to attract property investors and the self-employed. Investors value loan options such as interest only, line-of-credit and discounts. Those who own their own business usually need a package with a good low-doc loan.

In a report published in June, Cannex says the top variable-rate packages are Adelaide Bank's Executive Offer, Newcastle Permanent's Premium Plus Package, Commonwealth Bank's Wealth Package and AMP Banking's Select Package.

The top five fixed-rate packages were offered by Commonwealth Bank, HSBC, BankSA and St George.

When taking out a package loan, there is a requirement to take other products, usually a deposit account and a credit card. This is attractive because the annual fee is bundled into the package's annual fee.

However, if the product offered in the package does not suit, there is no obligation to use them.

The type of credit card does vary between institutions. Many will offer their standard credit card but some, such as St George, offer a platinum card.

source : http://www.smh.com.au

Four Tips: Smart Money Moves for a Down Economy

The tally for last week's government rescue plan: $700 billion. The number of job cuts in September: an eye-popping 159,000. And on Thursday, the magic number was 9,000 -- or, more precisely, below 9,000 -- where the Dow Jones Industrial Average found itself for the first time in four years.

For consumers, these numbers indicate one thing: Now's the time to do everything you can to protect your finances. A couple weeks ago, we offered 5 Tips for Navigating Troubled Markets. Here are four additional smart money moves to make now:

Convert to a Roth

The down markets may decimate your retirement savings, but they also provide a rare opportunity: To convert your traditional IRA into a Roth IRA with a reduced tax hit. (For a tutorial on the differences between these two types of IRA accounts, click here.) When you convert a traditional IRA to a Roth, you owe ordinary income tax on every dollar you roll over (unless you've made nondeductible contributions to the account). Fewer dollars in your account spells a smaller tax bill. And if you covert the account only to see your balance dip further, you can always redo the conversion, so you aren't paying taxes on gains that are now gone.

A big perk of Roth IRAs is that withdrawals taken during retirement are completely tax free. That's a big gift from the government. Typically, Roth IRAs make the most sense for younger folks since they have a bigger window to benefit from the compounding growth and they're likely to be in the same tax bracket or higher during retirement. But given the budget deficit and the idea that it will result in higher taxes across the board, the Roth could benefit most people regardless of age.

The one catch with a Roth conversion is that your adjusted gross income must be $100,000 or less. Given the number of layoffs and eliminated bonuses this year, some folks who've previously been ineligible may qualify this year. If you're still making more than that amount, the $100,000 limit will be eliminated starting in 2010.

Create a Budget

"Watch every dime coming into your house, because tomorrow it could be a nickel," warns Catherine Williams, vice president of financial literacy for Money Management International, which oversees nonprofit credit counseling agencies. There's no better way to do this than to stick to a budget.

The basic premise of a budget is, of course, simple: Make sure expenses don't exceed income. (Click here for a few easy budget cuts.) But you also need to find a way to squeeze out some savings, says Donald Ray Haas, a certified financial planner and president of Haas Financial Services in Birmingham, Mich. "Until you accept that, you're in trouble."

Check your budget breakdown against these rough guidelines from Money Management International's Consumer Credit Counseling Services:

• Housing (20-35%)
• Food (15-30%)
• Transportation (6-20%)
• Medical (2-8%)
• Insurance (4-6%)
• Utilities (4-7%)
• Clothing (3-10%)
• Personal Care (2-4%)
• Misc. Items (1-4%)
• Personal Debt (20% maximum)
• Savings (10% minimum)
  * Source: Money Management International

Eliminate Debt

Sound investing is one way to shore up your personal balance sheet. But if today's stock market has you spooked, you can get a nearly unbeatable return by focusing on paying off debts instead.

High-Interest Credit Cards

Attack high-interest-rate credit cards with a vengeance by seeking out the cheapest rates you can find, says Scott Bilker, founder of DebtSmart.com. Look to credit unions, which tend to offer more favorable rates than big-name banks. Or call your card issuer and tell them you've received better rate offers. Lenders would rather lose a little money by lowering your rate than have you move your entire balance and future business to another company.

source : http://online.wsj.com

Two arrested for illegal use of credit card

NEW MILFORD -- Two town residents were arrested Tuesday night on warrants charging them with illegally buying $36 worth of items at the Pickett District Sunoco gas station in August, police said.

Gregory Gardner, 18, of Candlewood Lake Road North, and Robert Cockcroft, 19, of Aspetuck Village, were charged with two counts of illegal use of a credit card.

News Source : http://www.newstimes.com/

The great credit card swindle

AUSTRALIANS lost more than half a billion dollars in credit card fraud last year, and security experts warn that banks are not doing enough to protect customers online and are playing down the problem for fear of harming their reputations.

Last year 383,300 people lost an average of $1600 to credit card fraud, says the Bureau of Statistics, which acknowledges the true figure is much higher.

This is because the bureau's survey into personal fraud - the first of its kind - recorded only an individual's most recent loss, but one-third of victims admitted they had been bilked two or more times.

Further losses were suffered by 124,000 victims of identity theft and 57,800 people defrauded by "phishing" - online scams that collect personal details.

A Herald investigation has found hackers, computer security experts and law enforcement authorities agree that online crimes involving credit cards and other transactions are easy to commit, hard to track and that criminals quickly circumvent new security measures.

In spite of this, bank customers are given little information about the severity of the problem.

Between 2006 and 2007 the dollar value of fraudulent credit card transactions grew by 30 per cent and the volume of illegal transactions climbed by 35 per cent, says the Australian Payments Clearing Association, which collects statistics from the nation's financial institutions.

While its figures show progress against activities such as cheque fraud, credit cards are the biggest and fastest-growing area of fraud, especially within online use.

Finance and computer experts say the growth is the result of banks inadequately protecting consumers.

"To encourage customers to get into online banking, the banks and online merchants downplayed the risks of fraud," said Andrew Wallis, an analyst at the independent research company Gartner.

"It's a classic thing. How do you get people moving into something? Well, you don't tell them it's dangerous. You don't mention the negative side. You'll extol the virtues and the benefits."

The benefits are clear - fewer tellers for banks and greater convenience for customers - but the dangers are complex.

"Realistically, the vast majority of people are never going to become computer security experts," Mr Wallis said. "It's the banks' responsibility to do everything they can to protect the customer."

Steve Lewis, of the security software vendor VeCommerce, said: "I talk to some of the chief security risk officers in the banks. You don't hear much about it in the media but, once you're in there having a quiet chat, you learn there is a lot going on, a lot that is not talked about."

News Source : http://www.smh.com.au/

New Technology Frees Small Business Cash Advances from Credit Card Processors

Small business can now seek advantages of dealing with a third party and are no longer tied to their credit card processor for unsecured cash advances.

Cliffton, NJ (PRWEB) October 7, 2008 -- FastUpFront introduces a new technology that provides small business to qualify for unsecured cash advance loans. Traditionally, these loans were only available from the business's credit card processor, making these companies vulnerable to inflated costs, bad service and refusal. Through its new technology, FastUpFront provides businesses a new option for cash advances, which are an essential financial lifeline for many small to medium sized companies.

"No one likes dealing with a monopoly situation," explains FastUpFront Manager of Business Development, Mark Schafer. "Without any competition, there is no incentive to bring down costs or increase service levels. So many of our customers tell us how they were literally trapped before."

FastUpFront provides this essential service to businesses facing cash crunches. This is a common phenomenon for firms dealing with steep growth curves or seasonal lulls in revenues. Banks and other institutional lenders are often unwilling to provide unsecured loans for operating cash flow, leaving businesses to seek other methods of financing. Small business cash advances are generally offered against a company's credit card receipts. FastUpFront now provides these companies options in seeking cash advances.

"Our technology makes it easy to apply, receive the business cash advance and repay the unsecured loan," says Schafer. "We have chosen to compete not just on approval rates and low fees, but also on customer service. Bad service has been a source of major complaints from businesses seeking cash advances." He points out that more than half of first-time customers return for further advances. FastUpFront approves 95 percent of applications.

FastUpFront has established itself as a leader in the lending industry. Our mission is to help businesses succeed by offering simple and effective programs for financing while focusing on quality service. Their unsecured cash advance program makes borrowing money simple and quick, and cuts out the strict application requirements normally associated with business loans. Their unsecured cash advance works for business on a variety of levels and in ways that make small business loans either unattainable or not suitable due to repayment schedules or credit history.

News Source : http://www.prweb.com/

Banks going slow on credit card hardsell

NEW DELHI: Amid fears of default rates going up in the wake of high inflation and global slowdown, banks and card issuers in India are going slow in issuing credit cards. Industry insiders indicate that the annual growth rate in the industry could slip to 20-25% by the end of FY09 from 30-35% being recorded over the last few years.

The ongoing credit crisis has prompted banks to take a cautious approach as far as lending is concerned. They are now increasingly looking at tapping the mid and high income group to ensure repayment.

“Banks are becoming careful about unsecured lending at this critical juncture when the economy is slowing down and prices are moving northwards,” said Standard Chartered general manager & head cards & personal loans RL Prasad. He added that the credit card division of StanChart will not be impacted as it caters primarily to the high and premium income group.

American Express vice-president (marketing) Amit Dutta said: “We cater to the affluent segment whose annual income is above Rs 8 lakh per annum. Repayment is generally a problem with those in the lower-income group.”

With rise in inflation, interest rates for home loans and other consumer loans have gone up. This has shrunk the disposable income of consumers and boosted card usage in India. Plastic money usage in India has gone up significantly by as much as 15% over the last few months as consumers have shifted their cash purchases to credit cards to defer payments.

Experts caution that while average spends on credit cards is on the rise, there are fair chances of default rates going up. “The number of customers defaulting on credit card payments is likely to increase by the end of this financial year and the industry may witness some strain on repayment in certain categories in the months to come,” said Credit Card Management Consultancy (CCMC) director Vijay Mehta.

At present, the default rates for payments is around 7.5-9%, according to a CCMC data. Consumers in India spend an average of Rs 4,000 a month on their cards. That is significantly less when compared to other Asian nations such as China, Japan, Korea and Thailand.

Indians spend just 1% of their total purchases through credit cards, while the world average stands at 9%. There are currently 25 million credit cards in the country of which only 40% is active.

Banks and credit card issuers fear default rates are expected to go up in the wake of high inflation and global slowdown.

They are now increasingly looking at tapping the mid and high income group to ensure repayment.
Credit card usage has gone up significantly as consumers have shifted their cash purchases to cards to defer payments.

News Source : http://economictimes.indiatimes.com/

Discover(R) Small Business WatchSM:Small Business Economic Confidence Falls Sharply

3 out of 4 Small Business Owners Expect More National Economic Decline ELECTION POLL: WHICH PARTY BEST REPRESENTS SMALL BUSINESS? Owners Share Party Preferences and Expectations for Next President

RIVERWOODS, Ill., Sep 29, 2008 (BUSINESS WIRE) -- Economic confidence among small business owners declined sharply in September amid rising concerns about economic conditions for their businesses and a bleak vision of where the economy is headed. The Discover(R) Small Business WatchSM fell to 74.6 in September, down 12.3 points from August.

"Even though we had two months of rising confidence, this month's drop isn't surprising given the constant stream of uninspiring news about the housing and lending markets, as well as the turmoil on Wall Street," said Ryan Scully, director of Discover's business credit card. "But when you look closer at the numbers, cash flow issues are steady and there is little change in their intentions for business development spending."

"The real mover of this month's confidence level is the overall sense that the economy is getting worse," Scully said. "That number dropped 13 percentage points, and the number of those who think the economy is getting better hit an all-time low of only 7 percent."

September Key Findings:

-- 42 percent of small business owners say they have experienced cash flow issues over the last 90 days, unchanged from August.

-- 51 percent believe economic conditions for their businesses are getting worse, up from 44 percent in August.

-- The number of small business owners who think the U.S. economy is getting worse rose to 73 percent from 60 percent in August; only 7 percent of small business owners feel the economy is getting better, the lowest rating in the Watch's history.

-- 57 percent rate the economy as poor, up from 51 percent in August; 32 percent rated it fair, 10 percent rated it good and 1 percent rated it excellent.

-- 28 percent plan to increase spending on business development over the next six months, which is unchanged from August; 44 percent plan to decrease spending and 26 percent anticipate making no changes.

News Source : http://www.marketwatch.com/

Student shops with stolen credit cards, held

LUCKNOW: One person was arrested in connection with purchasing cellphones from a store in a shopping mall in Gomtinagar on stolen credit cards. T
he arrested identified himself as Gaurav Robinson of Indiranagar. According to the police, Gaurav is pursuing his BCA.

The police recovered from the accused two cellphones that he had purchased on the credit cards that belonged to Vikas Jhunjhunwala and Rakesh Verma. During interrogation, the accused revealed that he along with another aide of his, had snatched away the bag of a courier company employee (on September 25) which contained the credit cards he used to purchase the cellphones. Cops have even recovered the motorcycle used for executing the aforementioned loot.

Robinson told police that he along with two others has also been involved in several chain-snatching incidents in the recent past.

This is not for the first time that such a case has come to light where things have been purchased by using stolen credit cards. A couple of months ago three men were arrested by the district police as they were purchasing electronic appliances worth lakhs on a credit card that did not belong to them.

The arrested had identified themselves as Dhirendra Singh Chauhan, Abhinav Gupta and Amit Kumar Sharma. The incident was reported from Hazratganj police circle. According to the complaint lodged the accused in the case were purchasing laptops and other electronic appliances through a credit card which Amit Kumar claimed to be his own.

As one requires to give an identification proof in case of a purchase of more than Rs 10,000 by credit card, Amit was asked by the dealer to present his ID proof. Amit reportedly presented a forged ID proof which aroused the suspicion of the dealer and he informed the police. Later the three were arrested after a case was lodged against them.

News Source : http://timesofindia.indiatimes.com/

Fitch SMARTView: 13 U.S. Credit Card ABS Deals Placed 'Under Analysis'

NEW YORK, Sep 23, 2008 (BUSINESS WIRE) -- Fitch Ratings has placed 13 of its U.S. Credit Card ABS deals 'Under Analysis', indicating that Fitch will be issuing a rating action within 30 days. SMARTView is Fitch's ongoing monthly surveillance process, with the 'Under Analysis' designation given to those deals which Fitch plans to further analyze over the next month. Of the 92 Fitch rated U.S. Credit Card ABS transactions, 79 U.S. Credit Card ABS deals were designated with a SMARTView date of Sep. 23, 2008, indicating that no in depth review is necessary.

As Fitch receives monthly information on structured finance transactions from trustees and servicers, Fitch analysts run the data through various internal algorithms that identify classes of a transaction as possible candidates for upgrade or downgrade. Fitch's analysts scrutinize the output to decide which deals need an in depth review, which are classified as 'under analysis', and those deals with no significant changes, which can be given a SMARTView date.

To review a list of deals 'Under Analysis', use the following link: www.fitchratings.com/smartview

SMARTView is available on the Fitch Ratings web site at www.fitchratings.com, along with the report titled 'SMARTView, Fitch U.S. Structured Finance Monthly Public Reviews'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

News Source : http://www.marketwatch.com/

Troopers: Bronx man used ex-NYC Mayor Dinkins' former credit card number

SOUTHEAST - A Bronx man faces several felony charges after he was found carrying an American Express credit card with an account number that once belonged to former New York City Mayor David Dinkins, state police said today.

The suspect was arrested after impersonating another man while trying to withdraw thousands of dollars from the man's bank account, police said.

Troopers from the Brewster barracks responded to the Chase Bank branch inside the A&P Supermarket in the Lakeview Plaza on Route 22 around 4:40 p.m. yesterday. Bank employees became suspicious when the man tried to withdraw $4,900 from an account, Sgt. Joseph Malorgio said.

An investigation by Malorgio, Trooper Miguel Osorio and Investigator Armando Barquin showed that Christopher Bowman, 46, of the Bronx impersonated the actual account holder in an attempt to fraudulently withdraw the funds, police said.

Bowman was found with a bogus Louisiana state driver's license In addition to the American Express card, police said. Dinkins had canceled the American Express account after himself being a victim of fraud, police said.

Bowman was charged with attempted third-degree grand larceny, second-degree criminal possession of a forged instrument, second-degree forgery, felonies, and second-degree criminal impersonation, a misdemeanor, police said.

He is being held today at the Putnam County jail in lieu of $25,000 cash bail or $50,000 bond, as set by Town Justice Richard Vercollone, and is due back in town court on Tuesday, police said.

Barquin is continuing the investigation, police said.

News Source : http://lohud.com/

Alliance Data Signs New Multi-Year Agreement to Launch Co-Brand Credit Card Program

DALLAS, Sept. 25 /PRNewswire-FirstCall/ -- Alliance Data SystemsCorporation (NYSE: ADS), a leading provider of loyalty and marketing solutionsderived from transaction-rich data, today announced it has signed a multi-yearagreement with AnnTaylor Stores Corporation (NYSE: ANN) to launch a newco-brand credit card program and to continue providing private label creditcard services. The agreement terms include launching a new co-brandMasterCard(R) credit card program and an exclusive points-based rewardsprogram for cardholders.
(Logo: http://www.newscom.com/cgi-bin/prnh/20051024/ADSLOGO )

The services Alliance Data provides for both the co-brand and privatelabel credit card programs include account acquisition and activation;receivables funding; card authorization; card issuance; statement generation;direct mail and email marketing services; remittance processing; customerservice functions; and marketing services. Alliance Data will launch fourall-new card-plastic designs for Ann Taylor, including private label andco-brand cards for both the company's Ann Taylor and Ann Taylor LOFT brands.As is consistent with the private label credit card program, the co-brandoffering will be targeted to customers that meet Alliance Data's traditionalcredit quality standards.

Ivan Szeftel, president of Alliance Data's Retail Services, said, "We areexcited about expanding our relationship with Ann Taylor by providing thisfully integrated credit and marketing solution. Our programs are guided byanalytics and results-oriented marketing principles, and we are leveraging ourexpertise and the strength of the Ann Taylor brands to deliver a truly specialprogram to their clients."

About Alliance Data

Alliance Data (NYSE: ADS) is a leading provider of loyalty and marketingsolutions derived from transaction-rich data. The Company manages more than107 million consumer relationships for some of North America's mostrecognizable companies. Through the creation and deployment of customizedsolutions that change consumer behavior, Alliance Data enables its clients tocreate and enhance customer loyalty to build stronger, mutually beneficialrelationships with their customers. Headquartered in Dallas, Alliance Dataemploys approximately 7,000 associates at more than 50 locations worldwide.Alliance Data is a leading provider of marketing-driven credit solutions, andis the parent company of Epsilon(R), a leading provider of multi-channel,data-driven technologies and marketing services, and LoyaltyOne(TM), whichowns and operates the AIR MILES(R) Reward Program, Canada's premier coalitionloyalty program. For more information about the company, visit its web site,www.AllianceData.com.

News Source : http://www.ibtimes.com/

Legislation would require credit card companies to pay all sales taxes collected directly to the state

ALBANY – State Senator Rev. Ruben Diaz Wednesday urged Governor Paterson to support legislation to amend the tax law, in relation to requiring issuers of credit cards and debit cards to pay and collect sales and use taxes and pay those taxes directly to the state Department of Taxation and Finance.

“While the Governor is now pressuring small business owners to properly remit their business taxes in an effort to balance the state’s fiscal needs, Governor Paterson has had an opportunity to do this all session by supporting my legislation, Senate Bill 774, which will ensure that New York State will receive over 500 million dollars in uncollected sales taxes,” said Diaz.

The only ones who are opposed to this legislation are the credit card companies, said Diaz. “They are not going to like this, because it will tell the state how much money they are making in New York. There is no additional cost to the retailer’s or consumers, just an end to sales tax scofflaws.”

News Source : http://www.empirestatenews.net/

Cybercrime toll mounts for businesses

Retailer TigerDirect depends on technology, collaboration with peers to fight cybercrime

Cybercrime is more than a buzzword, it’s a critical business concern, say 1,387 IT professionals surveyed by security firm Finjan.

Ninety-one percent of respondents call cybercrime a “major business risk,” and 73% say they are more concerned about data theft than about downtime and loss of productivity from malware. In addition, 25% of respondents admit to data breaches in their organizations, according to the survey that Finjan conducted in July and released today.

Cybercrime’s impact is no surprise to those on the front lines.

“Fraud today is highly sophisticated, and the people doing it get smarter and smarter, so we have to, also,” says Gilbert Fiorentino, CEO at TigerDirect. The computer and electronics equipment retailer is a subsidiary of Systemax, which also owns CompUSA.

When credit cards are stolen in volume in big heists like the one perpetrated against TJX, those stolen cards are put to use by fraudsters who try to rip off stores like TigerDirect, Fiorentino says.

TigerDirect has 30 retail stores as well as an online Web sales operation for businesses and consumers. According to Fiorentino, the majority of the unrelenting attempts to hoodwink TigerDirect with stolen credit- and debit-cards will occur online in consumer sales.

A retailer like TigerDirect is an attractive target for those trying to use a stolen card because computer and electronics merchandise is easy to sell on the black market, Fiorentino points out.

One common ploy these days is for a fraudster to watch the home of a person whose credit-card information has been stolen, to determine if the person is out of the house most of the day, says Fiorentino. Fraudsters know retailers are more suspicious if a credit-card order requests delivery to a different address than the billing address of the credit card. So a fraudster might place orders to have equipment sent to the victim’s home, and then intercept it, pretending to live there.

TigerDirect’s home-grown antifraud system, developed over many years, seeks to raise a red flag on any manner of suspicious sales.

Red flags would be raised, for instance, for payment card data submitted from any IP address in Eastern Europe, or card numbers that have traversed through so-called anonymizer sites that hide the originating IP address. But there’s plenty of U.S. domestic online fraud attempts to worry about, too, Fiorentino adds.

News Source : http://www.networkworld.com/news/

Credit card with chip takes aim at fraud

Cashiers would no longer swipe debit cards in new system

VICTORIA -- A major shift in how debit and credit cards are used is taking shape across the country.

Canada's financial institutions have started to switch from the traditional "swipeable" card with a magnetic strip to a new card design incorporating a tiny computer chip. Customers are being asked to insert their card into a point-of-sale reader and typing in a code, instead of giving the card to a cashier to be swiped and then signing a receipt.

The change is intended to reduce the $300 million incurred annually in debit- and credit-card fraud in Canada. Card issuers have started offering the chip cards to customers across the country, with the expectation the cards will be in wide use by the end of 2010.

"It's excellent that they are doing something; credit-card fraud and chargebacks are an ongoing problem," said Kate Phoenix, vice-president of marketing and sales with Rogers' Chocolates. "When there is fraud or a chargeback the full cost is borne by the vendor -- when there is a false charge the banks credit the person, but they take it back from us."

Instead of swiping their card, customers will insert it into a reading device where it will remain until the end of the transaction. Like debit-card customers, credit-card users will also punch in a personal identification number and no longer have to sign a sales slip.

The director of payment system risk for Visa Canada said chip cards are typically being issued when old ones expire.

"We're very much at the start of all this," Gord Jamieson said.

"There's a low percentage of cards out there now, with volumes in the 85 to 90 per cent range expected by October 2010."

In addition to better security, the new cards should also cut checkout lineups. "It's actually a faster transaction," said Jamieson.

News Source : http://www.canada.com/

Want credit? Here are some important things to remember

Buying anything that requires credit is harder than it used to be. Banks who used to send credit card and mortgage refinancing solicitations on an almost daily basis have ratcheted up their lending standards, making borrowing more difficult for the most stalwart of consumers.

Deals, though, are available for financing everything from home equity loans to cars to flat screen TVs. Zero percent financing is still available at times. Experts advise consumers to be cautious. Stephanie Bittner of the Consumer Credit Counseling Service of the Delaware Valley also had the following tips:

* Before making any major purchase check your FICO credit report because many of them have errors which could be hurting your score. Fair Isaac, which developed the score, recommends that people "actively" seeking to improve their credit review their reports quarterly and even monthly.
* Make sure that your bills are current. Creditors won't look kindly on a consumer with past due accounts.
* Larger down payments are better in the eyes of banks because less money needs to be borrowed. "That means you are less of a risk to a lender," she said.
* Shop around. Banks have different lending standards and consumers may find better rates if they comparison shop
* Don't max out your credit. That will make it more difficult to borrow for future purchases.

Fair Isaac also notes that lenders take other factors into consideration for credit besides the FICO score, such as employment history. Consumers should also be aware that making too many requests for new credit is a red flag for lenders. "People with six inquiries or more on their credit reports are eight times more likely to declare bankruptcy than people with no inquiries on their reports," according to Fair Isaac.

Finally, consumers should be especially cautious about hiring companies that promise to "repair" their credit. As the Federal Trade Commission notes, "No one can legally remove accurate and timely negative information from a credit report." Many of these firms are probably scams.

Unfortunately, many consumers are seeing their credit scores plunge since they are falling behind in their bills. This makes it even more difficult for people who need to borrow money to get it.

source : http://www.google.com/news?

NBI nabs suspected credit card account hacker

The National Bureau of Investigation (NBI) on Monday night arrested a suspected member of an international credit card fraud syndicate in Iloilo City.

The NBI identified the suspect as Manuel Dumdum, a Filipino-American and a suspected member of the "Asian Boys" group that has an alleged link to the international group European Mafia.

Dumdum was arrested with a female companion, Marissa Yrezabal, during a raid conducted by the NBI in a subdivision in Mandurriao district on Monday night.

The NBI said Dumdum's arrest was a result of a three-month surveillance and background investigations.

Seized from the suspects were several identification cards, fake credit cards, computer equipment and other paraphernalia being used to create fake credit and ATM cards.

The NBI said Dumdum is involved in hacking ATM and credit card accounts.

It said the suspect was also arrested last year based on the same crime. It was not, however, clear how the suspect was able to get out of jail.

Charges for violation of Republic Act 8484 or The Access Devices Regulation Act of 1998 are being readied against the suspects.

News Source : http://www.abs-cbnnews.com/

How credit card use impacts your FICO credit score

Your FICO credit score is made up of five factors of varying importance. Here's how your credit card use (or lack thereof) can affect each of the components.

Note that the weighted importance of the categories are averages. For some people - such those who haven't been using credit for long - certain categories may count more heavily.

_Payment History. This accounts for 35 percent of your FICO score. If you have any late payments, the score will take into account how late you were, how much was owed and how many late payments there were. If your overall report is strong, a few late payments shouldn't be a score killer.

_Credit Use. Thirty percent of your score is determined by your credit utilization ratio, which measures your outstanding balance against your available credit. So if you have outstanding debt and cancel a credit card, losing that line of credit will mean you're using up more of your credit - which will raise your credit utilization and thus lower your score.

Experts say it's best to use less than 30 percent of your available credit. Generally speaking, the lower the percentage the better.

_Length of Credit History. This determines 15 percent of your score. So if you're closing credit cards, keep the card you've had the longest.

One alternative to closing your accounts is letting them sit. But you should check on them occasionally to make sure identity thieves aren't using them.

source : http://www.forbes.com

Kaulkin Ginsberg Report Says Increased College Student Credit Card Debt Causing Financial Straits for Graduating Students

ROCKVILLE, Md., Sep 10, 2008 (BUSINESS WIRE) -- College students are known for carrying student loan debt; however a new report, The Student Market for Credit Cards: Issues and Trends, finds that more of this year's seniors will be facing a "perfect storm" of financial struggle after graduation, especially due to increased college student credit card debt.

The convergence of higher student loan debt, student attitudes toward credit card debt, and a dim employment outlook are just some of the factors that will cause difficult circumstances for some graduating college students this year, according to the report from Kaulkin Ginsberg, the leading strategic advisor to the debt collection / accounts receivable management industry.

"Students are using credit cards as a last resort to pick up the slack when they have difficulty getting loans or jobs to cover their expenses," noted Dimitri Michaud, Kaulkin Ginsberg Consumer Finance Analyst and author of the report. "With fewer loans and jobs available, you have the makings of an increase in college student credit card debt on top of existing student loan debt."

Michaud added that government loans and grants have failed to keep pace with educational costs, and ten percent of student borrowers now rely on private loans to bridge the gap. The recent credit crisis has impacted the ability of students to obtain these private loans, however. More than two dozen lenders, including Bank of America, Citigroup and Wachovia, stopped or curtailed their private lending to students over the summer.

"Separate studies by the American Council on Education and by U.S. PIRG both found that roughly 25 percent of student credit card holders used their cards to pay for some portion of their tuition," said Michaud. "With major lenders now limiting the availability of private student loans, we may see that percentage of college students paying a portion of tuition on credit cards increase, thus increasing college student credit card debt levels."

Attitudes toward credit may also be a factor in increased college student credit card debt. More than 25 percent of college students think it is reasonable to use their credit cards as a means to raise cash, according to a recent National Association of Retail Collection Attorneys (NARCA) survey. The NARCA survey also revealed that 31 percent of those polled did not worry about college student credit card debt because they believed they could pay back outstanding balances once they were out of school and earning a regular paycheck.

This optimism may be ill-founded, especially for the younger portion of the work force. Unemployment numbers for individuals between the ages of 16 and 19 - years that encompass a good portion of the college student population - rose steadily in May, June, and July - from 18.7 percent, to 18.1 percent, to 20.3 percent respectively. This means that many students were unable to earn income during the summer break, and the outlook for employment after graduation may be similarly bleak.

source : http://www.google.com/news?

Will the consumer credit market be the next to collapse?

The sub-prime market has collapsed, Alt-A and even prime loans appear to be in serious trouble in the United States, but surprisingly, there has been very little discussion of a potential collapse in the consumer credit market. That however could change soon.

Earlier this month Citigroup announced that it "lost $176 million in the second quarter packaging card loans into securities" after completing "fewer deals and [being] forced to mark down its own $9 billion stockpile of the debt instruments and other stakes the company amassed while selling them to investors."

According to Bloomberg, delinquencies on the securitised portion have jumped by 16% since the end of last year to $2.16 billion as of June 30. What is most surprising is that delinquencies have increased by only 16%, especially given how lax banks appear to be in handing out credit to customers.

Last week, your correspondent received a letter from Citigroup offering an increased credit limit from $18,000 to $27,000. The letter helpfully noted that the increased credit limit could be used to purchase a new plasma television. No positive credit checks were conducted nor any further investigation as to earnings or capacity to repay the amount (Citi, like all other Australian institutions, are only able to conduct a "negative credit check").

Many in a weak financial position have been tempted by the quick escape of credit cards. Not only are credit cards remarkably easy to obtain, they are also relatively cheap compared to other unsecured forms of finance. Most credit cards charge an interest rate of around 20% -- by contrast, GE Money told Crikey that an unsecured personal loan of $27,000 would have an applicable interest rate as high as 34.95%. If the relatively low rates aren’t enough to entice the battlers into buying more stuff they can’t afford, The Age reported yesterday that "Australian banks and other credit lenders employ ‘psychological manipulation’ to tempt consumers to increase their credit limits, according to a report that examines the language and design used in letters offering higher credit allowances." Not only do financial institutions provide significant amounts of unsecured credit, they actively encourage customers to live beyond their means.

While the US mortgage market has collapsed due to banks lending to borrowers with poor credit risks and insufficient collateral, at least those borrowers had some collateral. A bank foreclosing on a property will often recover upwards of 50% of the money loaned. By contrast, credit card borrowers provide no security for their debt, nor do banks conduct anything like the investigation required for a prime mortgage or business loan.

In the US last month consumer credit rose another US$14.3 billion last month to US$2.59 trillion – that means every single American, man, woman and child, owes around US$1,000 on their credit card. Fair to suggest a lot of that won’t be paid back.

Source : www.new.google.com/

Prepaid Cards Offer Safe "Charge" Option for Teens

CHICAGO, Aug 01, 2008 (BUSINESS WIRE) -- For the teen who wants it all, a prepaid debit card may be the answer, says Mintel. Conveying "cool" status and making payments easier, prepaid cards also offer security and control for parents. A new report from Mintel suggests teenagers--and their parents--could be a lucrative target for prepaid debit cards.

Prepaid cards have many teen-friendly features, according to Mintel. Unlike credit cards, they carry no risk of debt or overdraft fees; cardholders can only spend the amount of money pre-paid onto the card. Additionally, prepaid cards offer the protection of a credit card and the opportunity to build credit. The cards are generally accepted wherever credit and debit cards can be used.

"Because most adults qualify for credit and are comfortable purchasing with credit cards, they aren't necessarily the ideal target for prepaid debit cards," comments Susan Menke, senior analyst at Mintel. "But teenagers, who may not qualify for traditional credit cards and whose parents are likely uncomfortable with them spending on credit, are the perfect target for prepaid debit."

Mintel's consumer research finds that parents like the idea of prepaid cards. Three in five (62%) respondents with children attending or planning to attend college are interested in having their children use a prepaid debit card rather than a credit card. Many prepaid cards come with safety features like allowing parents to monitor spending or requiring authorization for online use.

Mintel Comperemedia, which monitors trends in direct marketing, has tracked a few prepaid cards marketed to teens and parents. For example, an email campaign from PAYjr promotes its prepaid MasterCard as a way to "start teaching your teens financial responsibility today." It explains the card's parental control features and highlights the importance of teaching teens money management skills.

source : http://www.google.com/news