A Warning On Identity Theft - Via Your Cell Phone

Just one of those forwards I received from a friend today regarding identity theft using your lost cell phone.  A very clever way of stealing your money so be careful:

This lady has changed her habit of how she lists her names on her mobile
phone after her handbag was stolen. Her handbag which contained her
mobile, Credit card, purse…etc…. Was stolen. 20 minutes later when
she called her Husband, from a pay phone telling him what had happened,
hubby says “I just received your text asking about our Pin number and I
replied a little while ago.”

When they rushed down to the bank, the bank staff told them all the
money was already withdrawn. The pickpocket had actually used the stolen
cell phone to text “hubby” in the contact list and got hold of the pin
number.. Within 20 minutes he had withdrawn all the money from the bank
account.

Moral of the lesson:

 

*       Do not disclose the relationship between you and the people in
your contact list. Avoid using names like Home, Honey, Hubby,
sweetheart, Dad, Mom, etc….
*       And very importantly, when sensitive info is being asked thru
texts, CONFIRM by calling back.
*        Also, when you’re being texted by friends or family to meet
them somewhere, be sure to call back to confirm that the message came
from them. If you don’t reach them, be very careful about going places
to meet “family and friends” who text you.
*       Texting puts a whole new meaning on vulnerability.

Feel free to pass this on…

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Lowering Your Property Tax Bill

I learned something new from my new tax guy today. I guess it’s a good thing that we switched. We felt that our old tax lady was overcharging us so we decided to try someone new.

Our first visit was amazing. Although it was a rather short visit, we left his office feeling like he was going to take care of us. Whether he really was going to take care of us is another story. The feeling that he was going to take care of us was good enough.

Anyways, I want to share a little bit of advice that he gave us that our old tax lady never talked to us about: Our property tax bill.

I never really thought about going the extra mile in trying to lower our property tax bill. Living in California, we expect our property taxes to be on the higher end. But given the current housing condition, saving money on our property taxes could sure help us.

So here’s the tip. Is your property value less than the assessed value? You can request for your house to be reassessed so your property tax against that property can be adjusted to its market value. Go to your county’s assessor’s website and download the Decline-In-Value Reassessment Application and mail in the completed form.

Homes in the Los Angeles County that were purchased between July 1, 2004 and June 30, 2007 will be reviewed by the assessor’s office due to the recent decline in home values so an application will not be necessary. Homes purchased outside of those dates, however, will need an application if you feel that the value of the home is less than the assessed value on your tax bill.

Be sure you contact your county assessor’s office for more information.

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A Short Sale, the IRS, and Your Mortgage Tax Bill

Did you know that if you have a really high credit card balance and you could no longer afford to pay the minimums, and if you negotiate for the balance down, the amount the credit card company “forgives” you is considered “income” and is taxable? 

Well, did you know that this concept also applies to selling your home if you sell it for less than your mortgage balance?  In the real estate dictionary, this is considered a short sale.  With the given market condition, many people can no longer afford to pay their mortgages.  Instead of going into foreclosure, home owners are are forced to sell their properties short of what they owe the bank. 

Previously, if you sell your house for $450,000 but you have a $500,000 balance, and the mortgage company “forgives” you on the $50,000, the IRS will tax you on the $50,000 because they view this as income.

Do you know what havoc this would cause and how this could affect the economy?  People already got into the mess of getting themselves into a bad mortgage program.  Then they are forced to sell their homes for less than what they owe.  Now they get hit an immense tax bill on the forgiven amount.  Sticky situation?

President Bush recently signed a bill that just went into law that would help folks in such circumstances.  In a nutshell, the law will eliminate the tax bill that the IRS would normally send you.  This bill is effective Jan 1, 2007 - Jan 1, 2010.

At least a short sale will result in a less impact on your credit than a having to foreclose on your property.  If you foreclose, your FICO score can potentially go down 250 points whereas in a short sale, your credit score can go down by only 100. 

Should we all hop on a plane and fly out to DC to give good old President Bush a hug for saving our asses from foreclosure? 

Nah, I can sure use the few hundred dollars on Little Mochi’s diapers.

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Don’t Let Credit Card Fraud Ruin You

According to the Federal Trade Commission, credit card fraud accounts for 25% of the identity theft cases in 2006.  In a report published by the US Census Bureau, there were 164 million credit card holders in 2003.  This number is anticipated to increase to 176 million by the end of this year (2008).  If the percentage of credit card fraud remains the same, that would mean there would be 44 million credit card fraud cases in 2008.  That’s 44 MILLION!

So how can you protect yourself from being a victim?  Here are a few preventative measures:

  1. Don’t give out your credit card number.  As obvious as this may sound, many people still do it.  One reason is because these identity thieves are getting creative with how they can “scam” you into giving them your social security number.  Once they have that, opening a credit card in your name is will be the first thing they do.
  2. Shred those pre-approved credit card offers and unused cash advance checks.  Don’t just toss them in the trash.  Actually put them through a shredder.  For higher security, purchase a cross cut shredder instead of a strip cut shredder.  A cost of a decent paper shredder can range anywhere from $40 to $300 and is well worth the purchase. 
  3. Shop only through secure websites.  If you want to take extra caution, Discover Card, CitiCard and Bank of America enables you to purchase online using a temporary number.  You will get a different number for every purchase.
  4. If you don’t receive your monthly billing statements, think about notifying those companies immediately.  Someone may be going through your mail to get your personal information.
  5. Always avoid clicking on any links you receive in your email from any banks even when you’re positively sure it’s from your bank.  Rather, type in the full domain name and log in. Some of these emails are fake even though they look legitimate.  These types of emails are called “phishing” emails. 
  6. Review your credit report annually and contact the credit bureaus immediately if you notice any strange or unfamiliar transactions.  You can place a fraud alert or a freeze on your credit if necessary.

Fraud Alert. Although the three tips above can greatly reduce the chances of your identity being stolen, it is every consumer’s responsibility to be vigilent in protecting their own identity.  If you think someone has stolen your identity, put a fraud alert on your credit.  When you request for a fraud alert, you are asking the major credit bureaus (Equifax, Experian, and Transunion) to put a message on your credit report.   This is supposed to tell creditors to verify with you if you or someone else is trying to open a new credit account.

Credit Freeze.  A better option that I prefer over the Fraud Alert is putting a Credit Freeze on your credit.  The difference between a fraud alert and a credit freeze is that creditors will not be able to check your credit at all with a credit freeze.  You and only you can obtain a PIN to temporarily lift the freeze so that your credit application can be processed. 

It’s always a good idea to keep a list of 1800 numbers for each credit card you carry just in case you need to contact them to report any lost or stolen cards.  And be sure to call as soon as possible.  They are just as eager as you in fighting identity theft. 

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A New Year’s Resolution

For some reason, making any New Year’s Resolutions is not my thing. To be honest, I don’t think I have ever made one in the past.  Why this year is different, I don’t know.  Perhaps there are just so many changes in my life in 2007 that I just want to make 2008 an awesome year.  So I actually sat down and thought for a few minutes on how to improve my life in 2008.  Although already three days into the new year, here are my four resolutions for 2008:

1. Get Organized!  In an earlier post, I mentioned me getting more and more absent minded.  The fact that my house is a mess, my office is a clutter, there is mail all over the place, laundry that needs to be washed, laundry that needs to be folded, forgotten dates, and all the paperwork left unfiled has left me looking for things such as my keys, my address book, my shoes, etc.  Having our mail all over the house has costed me several hundred dollars in late fees and overdraft fees.  So it would only make sense that I get organized this year.  Using the “new baby” excuse will get old eventually. 

So here’s the plan:

2. Family.  Family is very important to me.  Not just my hubbie and new baby.  But my parents and siblings and cousins and aunts and aunts and second cousins and great aunts and uncles.  Oh, and my in-laws!  Yes, even my in-laws! I have a big family. A really big family.  It’s so big that every time there is a big family gathering (wedding or birthday), there is at least one person among the crowd that I do not know.  It’s so hard to remember everyone’s name and birthdays. 

So here’s the plan:

3. Friends. I have to shamefully admit that I have been bad with keeping in touch with my old friends and classmates.  Some years I’ll send a Christmas Card and some years I won’t.  I rarely send birthday cards.  Heck, I don’t even know or remember some of my friend’s birthdays! 

So here’s the plan:

4. Make Mo’ Money Online. Currently, I’m making a measly $10 / day online.  I want to make more (who doesn’t?).  I am going to make more.  My goal for 2008 is not to double that.  Not triple it either.  I don’t even want to quadruple that.  I want to work towards a goal of making 10 times more than that!  I want to make $100 per day online. 

So here’s the plan:

Well, Year 2008, I hope you’re listening to me because I’m ready for a prolific, successful, and fulfiling year!

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Making Money Online - My First Product Made and SOLD!

I’ve been out of work for 5 months now, but I’ll be returning to work next Wednesday, Oct 24.  :-(  How depressing.  A few people have asked me if I have done anything during the 5 months of my maternity leave.  I’ve told them no, but that’s not exactly the truth.  Well, I didn’t travel anywhere, if that’s what they’re asking. 

Let’s just say that I spent whatever spare time I had helping my husband with his business (He’s an internet marketer/publisher.  He keeps a Passive Income Blog if you want to learn more about what he does).  It was great because I learned a lot about not just internet marketing, but also how people make money online.  And one of the best ways to make money online is to have your own product.  And guess what???

I am proud to say that I created my very own product!  It’s listed on eBay and I have plans to get it on Amazon.  My first day of listing on eBay, I sold 2 copies!  It’s not much because I netted only $10 per pop, but it’s a start.  The concept is…make a few more products and viola!  A few extra hundred dollars into my bank account every month (sigh…milk money.  I wish it was shopping money)!

Oh!  What product did I make?  LOL.  I made a citizenship test guide for those taking the naturalization test.  Check it out.  It’s a bit corny, but it sells.  And there seems to be a market for it.  (If you want to purchase one, shoot me an email.  I take Paypal :-) )

 Citizenship Test Guide

It’s getting late so I’m going to have to tell you how I came up with the idea and how I created it some other day.

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