8 million victims in the world’s biggest cyber heist
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Although the security breach was closed on Friday after Best Western was alerted by the Sunday Herald, experts fear that information seized in the raid is already being used to pursue a range of criminal strategies. These include:
Armed with the numbers and expiry dates of customers’ credit cards, fraudsters are equipped to make multiple high-value purchases in their victims’ names before selling on the goods.
Bundled together with home addresses and other personal details, the stolen data can be used by professional organised criminal gangs which specialise in identity theft to apply for loans, cards and credit agreements in the victims’ names.
Because the compromised information included future bookings, the gang now has the capacity to sift through the data and sell “burglary packs”, giving the home addresses of local victims and the dates on which they are expected to be away from their home.
Although the nature of internet crime makes it extremely difficult to track the precise details of the raid, the Sunday Herald understands that a hacker from India – new to the world of cyber-crime – succeeded in bypassing the system’s security software and placing a Trojan virus on one of the Best Western Hotel machines used for reservations. The next time a member of staff logged in, her username and password were collected and stored.
It is important to do what you can to protect yourself from identity theft. Unfortunately if large companies fail to protect your private information you are left to cope with the consequences. As far as I can tell from reading the article it seems to be saying those staying or reserving lodging at Best Western hotels in Europe are those in danger of identity theft.
Related: Credit Freeze Stops Identity Theft Cold – Budget Lodging Worldwide – Curious Cat security related posts
Unfortunately some companies think the way to make money is to try and con their customers out of cash. Certain industries seem to prefer this tactic: credit cards, banks, printer companies… To avoid rewarding them for behaving badly read: Take That, Stupid Printer!
But my printer’s pages hadn’t been fading at all. Did it really need new toner – or was my printer lying to me?
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To find out, I did what I normally do when I’m trying to save $60: I Googled. Eventually I came upon a note on FixYourOwnPrinter.com
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covering the sensor with a small piece of dark electrical tape tricked the printer into thinking he’d installed a new cartridge. I followed his instructions, and my printer began to work. At least eight months have passed. I’ve printed hundreds of pages since, and the text still hasn’t begun to fade.
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many Hewlett-Packard printers can be brought back to life by digging deep into their onboard menus and pressing certain combinations of buttons. (HP buries these commands in the darkest recesses of its instruction manuals
You can believe what I am sure would be arguments by the companies for why breaking customers printers is helpful or you can save money and the environment by realizing that printer companies are notorious for trying to manipulate customers and use the internet to find ways to protect yourself and the earth from such abuse.
Related: Price Discrimination in the Internet Age – $8,000 Per Gallon Ink – Kodak Debuts Printers With Inexpensive Cartridges – Zero Ink Printing – HP Poor Service – Industry Standard?
The Entrepreneurship Lottery by Scott Shane
Generating significant financial value is something done by a very small percentage of start-ups, but a handful that do generate a lot of value.
Scott Shane is a Professor of Entrepreneurial Studies at Case Western Reserve University
Related: Easiest Countries from Which to Operate Businesses – Capitalism in China – Frontline Explores Kiva in Uganda
Wholesale Prices Rising at Fastest Pace Since 1981
New federal government data showed that the cost of materials used by businesses increased 1.2 percent in July and have risen 9.8 percent during the past 12 months. It was the largest yearly increase since 1981, as businesses absorbed sharp increases in energy and other commodity costs.
Today’s report follows recent news that consumer prices are also rising faster than expected — and faster than the Federal Reserve’s generally accepted target rate of around 2 percent.
Inflation can cause serious damage to your personal finances. As prices increase if you don’t get a raise (or your investments don’t raise) to match the increased costs you must pay your financial situation deteriorates. One benefit, to those with 30 year fixed rate mortgages, is that you get to pay back your loan with inflated dollars. This can be a huge advantage for some, and a huge loss for whoever holds the mortgage.
Related: inflation risk for investments – Inflation is a Real Threat – Food Price Inflation is Quite High – posts on inflation
Short selling is when you sell something before you buy it (you try to sell high and then buy low later, instead of buying low and then selling high later). In order to sell short, you are required to borrow the shares that you then sell. So if I own 1,000 shares of Google (I wish), I could lend them to someone to sell. Nothing happens to my position, it is just that those shares are now allocated to that short sale. If I sell them then the short seller has to go borrow them elsewhere or buy the stock to close their position. In general the borrowing is either from brokers that hold shares for individuals or from large institution (mutual funds, insurance companies…).
However from everything that I read it appears the SEC hasn’t bothered to actually enforce this law much. There was a bunch of excitement recently when the SEC announced it would bother to enforce the law to protect a few large banks, many of whom are said to practice naked short selling but didn’t like it when that was done to their stock. As you can see, this does make the SEC look pretty bad, when they chose to enforce a law, not in all circumstances, but only to protect a few of those who actually take advantage of the SEC’s failure to enforce the law to make money.
CEOs Launch Web Site To Protect Short Sellers
Some people find the whole concept of short selling bad since it is based on making money on stock price declines. I don’t feel that way and believe it can help the market. But it requires regulators that actually do their jobs and enforce laws. A favorite tacit of those who seek to keep open special ways for themselves to benefit from abusing the system is to try and make things seem complex. The recent SEC order saying they would enforce the intent of the law to protect a few powerful banks from the behavior many (or most) practice themselves for years shows that it isn’t that complicated.
Adding the decision not to enforce the requirement to borrow shares to their recent decision to eliminate the requirement that short sales take place on down ticks in price (a measure put in after the 1929 stock market crash to not have short sellers accelerate market declines and insight panic seems like a really bad combination).
Related: Shorting Using Inverse Funds – Monopolies and Oligopolies do not a Free Market Make – Fed Continues Wall Street Welfare – SEC data on “failures to deliver”
There are ways to get more vacation time
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According to Robinson, mentioning to your boss that you are willing to go on vacation without any pay can often be a very effective way to get some time off.
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Take what you get: It may seem obvious, but many people don’t check how much time they are entitled to take off. Many others are reluctant to take the average nine days of paid vacation to which they are entitled, often because they are afraid it will show weakness or lack of loyalty.
Joe Robinson said there may be “ongoing subtle discouragement” in the work force, but employees should remember that they are entitled to their vacation and should not be afraid to take it. In 2005, U.S. workers collectively turned down a staggering 1.6 million years of vacation time that was offered to them.
I find these discussions of how little time off we have interesting. Similar studies look further back, at hunter gathers and find similar patterns. Still they are a bit misleading. What about total hours worked during the year (for peasants). What about the conditions of work and life. What about life expectancy… Still I agree with the thought that more vacation is more important than more work to fund more spending. I would rather reduce my spending and have more free time. I have taken unpaid vacation myself, and have worked part time, at times, to buy myself more freedom to spend my time as I wished.
Related: Vacation: Systems Thinking – Workplace Experiments
Today, the market capitalization of Apple exceeded Google for the first time since Google went public. Both Companies are now valued at $185 billion. In 2007 Google had revenue of $16.6 billion and net profit of $4.2 billion. Apple had revenue of $24 billion and net profit of $3.5 billion. Since Google went public on 27 August 2004 their stock price is up 367% and Apple is up 1064% – both pretty good. I own Google and have it as the largest holding in the 12 stocks for 10 years portfolio.
Related: Buy Google – Stop Picking Stocks – Lazy Portfolio Results – Great Google Earnings
I figure it is pretty easy to figure out if I can afford something. Do I have cash available (my paycheck already has retirement funds etc. deducted before it shows up in my checking account)? I also have a separate saving account for medium term savings and a separate brokerage account for long term investing (and a Roth IRA). So the money in my checking account basically is how much I have to spend. If I have the money and want to spend it, I can afford it. If I don’t have the money, I can’t afford it. I can just save until I can.
There is a nice post, How to find out if you can afford something, that explores when that simple concept isn’t quite enough.
I made this mistake when I decided to start a saltwater aquarium. I found a great deal on the tank and some supplies on Craigslist, and went ahead and bought it. What I didn’t factor in was the costs of additional supplies, fish and ongoing maintenance. Turns out, saltwater aquariums are an expensive hobby. In hindsight, I wish I had done my homework a little more.
Good Advice. Related: Americans are Drowning in Debt – Too Much Stuff – Add to Your Roth IRA – Teaching Children About Money Matters
Fannie Mae (the quasi government mortgage giant) is raising fees for mortgages it buys. Banks and mortgage lenders often sell the mortgage to Fannie Mae shortly after completing the loan. Mortgages get more expensive – again
And Fannie doubled its “adverse market delivery charge” to 0.5%. That is an across-the-board fee assessed against every loan Fannie buys, according to a Fannie spokeswoman. Fannie first instituted the charge this spring.
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The added fees will be passed on to borrowers and could mean quarter-point increases in interest rates.
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Fannie will also eliminate buying Alt-A loans by the end of 2008. Alt-A loans, a category between prime and subprime, accounted for about 11% of the company’s loans during the last years of the boom. They have been used mostly by people who couldn’t or wouldn’t document their incomes, their assets or both. These buyers will find it harder to obtain financing once Fannie stops buying the loans.
According to Yun, however, the cutback in Alt-A will hurt people buying second homes to rent out or resell, rather than first time homeowners. “These are people who often rely on their good credit to buy investment properties putting little or no money down,” he said.
Related: Mortgage Rates Rising – Fed Funds Rate Changes Don’t Indicate Mortgage Rate Changes – Jumbo and Regular Mortgage Rates By Credit Score – Homes Entering Foreclosure at Record
Bankruptcies among seniors soaring
The average age for filing bankruptcy has increased and the rate of bankruptcy among those ages 65 and older has more than doubled since 1991, say researchers Teresa Sullivan of the University of Michigan, Deborah Thorne of Ohio University and Elizabeth Warren of Harvard Law School.
Expensive health care costs from a serious illness before a patient received Medicare and the inability to work during and after a serious illness are the prime contributors to financial crises among those 55 and older. But even among those 75 to 84 and receiving retirement, Social Security and Medicare benefits, the rates soared—from just 1.8 percent of all filers in 1991 to 5 percent in 2007.
Most Americans have two major assets: their homes and their retirement plans. And borrowing against those assets can present new risks when home values and stock markets decline, Sullivan and colleagues say. In some cases, older Americans trying to help children and grandchildren, borrow too much, putting themselves at risk.
Related: Boomers Face Retirement – Retirement Tips from TIAA CREF – Saving for Retirement