As the mom of a teenager who will be driving soon, I naturally want to make sure my son stays safe. I want him to keep his eyes on the road. I don’t want him to get distracted and accidentally hurt himself or someone else.
According to AAA, nearly 50 percent of teens admit that texting while driving is dangerous. However, Students Against Destructive Driving (SADD), along with Liberty Mutual Insurance Group, also released data that 37 percent of teens continue to send and receive text messages in their moving vehicles anyway. Even though state laws increasingly deal with texting and talking while driving (for example, by legislating the use of hands-free sets), there’s still a ways to go in educating drivers of all ages about the dangers of these habits.
And education is, indeed, a key step to reduce distracted driving. There are articles, web sites, and videos that can assist you in becoming more informed and passing this information along to your children and others in your life. Check out the Federal Communication Commission’s Distracted Driving Page to learn more and get information you can use in your community. The web site also provides links to other agencies – including the Department of Transportation – and organizations that are involved in reducing distracted driving.
Changing behavior is not easy, but it starts with each of us. As for me, I’m striving to set an example for my son by putting away my cell phone and paying closer attention to the road when I’m behind the wheel. It’s a small but critical step in making the road safer for my son and those with whom he shares it. After all, kids may not always listen to their parents; but they do watch what we do.
[Today's guest blogger is Susan from the Consumer Federation of America.]
An official-looking envelope arrives in the mail with a check or money order for $20,000 inside. The letter says you have won $4 million in a sweepstakes or lottery. You just need to wire $3,000 for taxes to claim the rest of your winnings. Is this your lucky day?
No! It’s a fake check scamthat will cost you thousands. These scams take many forms. You might unexpectedly receive notice that you are getting a grant or that a company wants to hire you to work at home as a mystery shopper. You might be selling something and the “buyer” sends you more than your asking price with instructions to wire the extra money back to him or to someone else.
A fake check from an FTC investigation
No matter the story, fake check scams always involve someone giving you a genuine-looking check or money order and asking you to wire money somewhere in return. After you deposit the check and send the money, you will learn that it was phony. The crook will have the money, and you will owe it back to your bank or credit union.
According to a survey by the Consumer Federation of America, many people mistakenly believe that banks and credit unions confirm that checks are good before posting that money to the account. That’s not how it works. Funds from deposited checks are available within days, but a counterfeit check can take weeks to detect. You’re responsible for checks you deposit because you’re in the best position to know if the person who gave it to you is trustworthy.
Believe it or not, losing thousands of dollars might not be the worst part of a fake check scam. If there isn’t enough money in your account to cover the check, you could face collection or be sued. Your account may be frozen or closed, and you could be reported to a database of checking account abusers, making it difficult to open another account. Some victims are even charged with check fraud.
Remember, there is no legitimate reason for anyone to give you a check or money order and ask you to send money somewhere in return. If that’s the deal, it’s a scam. Check out our website for more information about these scams and how to protect your hard-earned money.
In this age of online social networking, it seems like everybody wants to stay connected and in the know. Social networking really isn’t new: people have depended on trusted family members, friends, neighbors or colleagues for centuries to help them keep up with the latest news and information. For people who like to take a leadership role in their own networks or communities, the FTC has got a myriad of free resources to share – in both the real world and the virtual one. For example, you can host an event to alert others to some practical ways to mitigate identity theft. The FTC’s toolkit, How to Plan & Host a ‘Protect Your Identity’ Day, can help you alert your network to how to minimize the risks and consequences of identity theft. The kit includes a video featuring identity theft victims telling their stories, a guide to talking about the crime, and tips to deter, detect and defend against it. The guide features sample materials, including a speech, presentation and templates for materials in English and Spanish. Suggestions for how to organize an event, reach out to partners and promote the event to your local media are included, as well. Consider hosting a “Protect Your Identity” Day in conjunction with your local library, house of worship, PTA or neighborhood association, and — or — posting the video and the Deter-Detect-Defend tips on your blog or website.
[Today's guest blogger is Yvonne from the Federal Reserve.]
As the famous folk song goes, “Oh, the times they are a changing.” And so have the rules governing your credit card. (I guess that song reference shows my age, huh?) Well, no matter what age you are, you’ll want to know about the new federal credit card protections that took effect on February 22.
The new rules require credit card companies to adopt practices that will benefit credit card users, for example:
Your credit card company cannot change your interest rate or make significant changes to the terms of your account without giving you 45 days notice and the chance to close your account.
If you make more than the minimum monthly payment, the excess amount must be applied to the balance with the highest interest rate.
If your credit card company raises your interest rate, the new rate will apply only to new charges, not to your existing balance.
The Federal Reserve has launched a new site, which summarizes the new rules and explains how they will affect you. On the site, you can:
Get the basic facts about common credit card options, interest rates, and fees.
Estimate how long it will take to pay off a credit card balance and develop a plan for paying off the balance sooner.
Use interactive features to learn more about credit card offers and the new features of your monthly statements.
Find a glossary of common credit card terms for quick reference.
All I needed was a pack of thumbtacks. As I approached the check-out counter, the clerk flipped the “next aisle” sign around to read “open.” So far so good. But then something strange happened. She insisted on my address and phone number – for a $3 cash purchase.
A few years ago, I would have reeled them off without giving it a thought. But times have changed. Fueled by a number of factors – an awareness of how data breaches can lead to identity theft, an appreciation for the National Do Not Call Registry’s gift of peace and quiet, and “green” concerns about marketing materials I won’t read – I stonewalled. When she persisted, I conducted a blistering cross-examination:
Why do you need that information?
What are you planning to do with it?
What steps will you take to safeguard it?
To whom do you intend to sell it?
With an understandable “Why do they always wind up at my register?” roll of the eyes, the clerk relented and sold me the thumbtacks. But the episode is a reminder to businesses that routine data collection from customers is “soooo 20th century.” Many shoppers find it irritating – and when combined with account numbers, financial data, or other sensitive information, customer databases are the coin of the realm for fraudsters.
Just ask the major retailers who’ve been hit by hackers. They’ll tell you the perceived benefit of “capturing” data for nebulous marketing purposes is often outweighed by the legal risks of a security breach. These days the wiser practice is for businesses to ask only for the information they need, to store safely what they have to hold on to, and to dispose of it securely when they’re finished.
Every company – from a home-based business to a multinational retailer – needs to rethink its approach to data security. It boils down to five basic principles:
Take stock. Know what sensitive material – account numbers, health records, financial data, Social Security numbers, credit card information, etc. – you have in your files and on your computers.
Scale down. Keep only what you need for your business.
Lock it. Protect the information in your care.
Pitch it. Properly dispose of what you no longer need.
Plan ahead. Create a plan to respond to security incidents.
One of my funniest memories of my dad is how he would frequently have me pick up a bottle of turpentine when I did his shopping. After ruling out the possibility that he was opening a hardware store or polishing an entire log cabin, I finally asked what the heck he was doing with that stuff. Turns out he used it for “Old Arthur,” his nickname for arthritis. Whatever turpentine’s imagined or real effect, Pop was convinced it did the trick.
As a city girl with country roots, I’ve heard of (and laughed at) lots of other outlandish home remedies and “miracle cures” for almost anything — from headaches to diabetes. And although I pressed my dad to put down the polish and see his doctor, it’s sometimes hard for me to ignore the ads for powders, pills and potions that are “guaranteed” to burn my stubborn belly fat or give me 48 hours of energy for my 18-hour day.
But, too often, these products are not effective, rob consumers (despite meaningless money-back guarantees) and, most tragically, can deceive consumers into forgoing proper medical treatment for life-threatening conditions. What’s more, they may interact dangerously with medicines that someone is already taking.
The FTC’s Health page includes red flags to look for and other advice to consider before purchasing health products. The site also tells consumers how they can file a complaint if they’ve been taken in by a company selling phony products.
If I didn’t inherit (all of) my dad’s eccentricities, thank goodness I have his sense of frugality. So “four easy payments of $59.99” is enough to turn me off. If you know someone who’s not as skeptical or cheap, pass this along. You might save their health (or, at least, a few hundred bucks.)
One of my favorite things about online shopping is reading user reviews, whether it’s for a pair of jeans or a digital camera. I still read articles and talk to friends, but it can be useful to see if a lot of people have the same kinds of complaints about the product I’m pondering. While there are obvious differences, I think filing a complaint with the FTC is similar — you’re helping the FTC and the 1,700 other federal, state and local law enforcement partners that have access to the information spot patterns and identify not only the scams and frauds that are happening, but the people behind them.
So what do you complain to the FTC about? And how do you do it? The FTC has a new animated video (also in Spanish and at the FTC’s YouTube channel) that shows just that, including examples of the kinds of experiences you might share with the FTC. Complaints can help stop scams, rip-offs and fraudsters, so I hope you’ll share this video and encourage people you know who’ve been ripped off or spotted a scam to file a complaint with the FTC.
A Message from U.S. Department of Education Secretary Arne Duncan
A few weeks ago, my colleague Colleen wrote about the challenges of her first credit card. Many of us have had similar experiences—when we realize we won’t be able to pay off our debt as quickly and easily as we thought. More than ever, it’s important that kids and young adults learn practical financial skills, so they can avoid costly mistakes.
The U.S. Department of the Treasury and the U.S Department of Education have teamed up to launch the National Financial Capability Challenge for 2010. The Challenge is an awards program designed to increase the financial knowledge and capability of high school students.
During February and March, educators who accept the challenge will teach students the basics of personal finance. Then, students will take a voluntary online exam. In April, educators and top-scoring students will receive award certificates, and schools and states with the highest participation rates will earn special distinction.
All educators working with U.S students (ages 13-19) are encouraged to register for the Challenge, download the free Educator Toolkit, prepare their students, and administer the online exam.
Registration ends on March 14, so please spread the word to high school educators in your local community!
[Today's guest blogger is Alison from the Council of Better Business Bureaus.]
The Better Business Bureau has released its list of the top scams and rip-offs of 2009. Free trial offers capped the list, including online offers for acai berry diet supplements and teeth whiteners.
If you were ripped off by a free trial offer last year, you’re not alone. According to a survey by Visa, 29% of Americans believe that they have been deceived by a free trial offer online.
Other high ranking scams were grant assistance scams, robocalls, and lottery sweepstakes scams.
With the economy still climbing out of a slump and the unemployment rate still in the double digits, consumers literally can’t afford to waste money on scams or with untrustworthy businesses.
This year, resolve to be a savvier consumer. The BBB can help. Forsimple ways to become a savvier consumer in 2010, check out this list of top ten New Year’s Resolutions.
