Finance Book

There are many stories of identity theft coming in the media. Most of these stories are focused on individuals whose identities are stolen. However, no one seems to be interested in understanding the impact of identity theft on small businesses.

Surveys have shown that one in sixteen businesses is attacked by identity thieves.

Most of the small business owners are interested in developing their business and making profit. In the process, they tend to neglect the security aspect. This is more likely in case of newly started businesses. Many established businesses also do not have a plan to react to such theft.

It is important to understand how identity thieves can harm the security of your business.

1. The thieves can get access to your company’s checking accounts as well as business credit cards and take away the money.

2. Some smart thieves can open a new checking account and obtain credit in the name of your business. This credit can be a big risk to your business.

3. The employee information or client information of your business is also at risk. Theft of such information may lead to serious consequences. Such information may be sold to other thieves, and it will increase the risk tremendously. If the identity details and other personal information of the customers are stolen, customers may sue the business for damages.

4. There may be some other risks to your business. Someone may change the name of your business or address of your business to capture important incoming letters. It may result in large unauthorized purchases, difficulties in credit ratings and damage business credibility in gentle. If it is your personal business, your entire financial life is in danger.

5. There is a new law introduced recently – Fair and Accurate Credit Transactions Act (FACTA) which deals with the security of identities of customers and employees of all businesses. If any business is negligent about securing this information, it can be liable and can be prosecuted for heavy penalties.

Identity theft is no more a civil matter. Businesses can be prosecuted for criminal charges if they are negligent in securing the information of their clients or employees.

By: Chintamani Abhyankar

You must be feeling the pinch of increase in the prices of gas.  High prices are same for everyone and you cannot escape. However, you may be facing a more devastating trouble while filling gas at the pumps – identity theft.

Identity thieves at the gas pumps try to install an electronic device called skimmer.  It is a tiny device installed outside the gas pump, particularly on the payment area.  You may be in a hurry while filling gas and may not look at the pump carefully.  Such skimmers may be in the form of tiny cameras to capture the pin numbers of customers or they may be in the form of fake keypads mounted on the top of the original ones to capture the keystrokes and the pin code.

Thieves take advantage of the fact that there are no attendants at the pumps.  They will keep on collecting information on credit cards with these skimmers and either will sell this information to others or use such information to make purchases on-line.  Sometimes they may make duplicate cards with the account numbers of the victims.  In any way, they will siphon your money very quickly.

This fraud recently became visible and may spread countrywide if the pump owners are not careful.

Well you cannot do anything to prevent installation of skimmers at the pumps, but you can certainly protect yourself by taking the following precautions -  

1.    Avoid using ATM cards at the pumps – The safest form of payment at a gas pump is always cash but it may not be feasible all the time.  However at least you can limit the risk by avoiding the use of ATM cards.  These cards are linked directly to your checking account and it is very hard to recover the money once it goes out of your account.  Even if the fraud is detected on your account, the account may be closed or frozen by your bank and you will not have access unless the matter is resolved.

Instead of ATM cards, you should use credit cards.  Fraud with credit cards is much easier to handle because the credit card companies will take quick actions to prevent losses.  Also by law, your liability for fraudulent use of credit card is limited to $50.  This may not put a big hardship for you.

2.    Always try to select a pump which is close to the cashier. Installing skimmers on these pumps may be difficult for the identity thieves.  If you are unable to get a pump close to the cashier, you can wait for some time but never take a pump which is far away from the cashier.

3.    You have to be careful about the payment.  If you use only one gas station most of the times, it will be easier for you to get accustomed with the features of the pumps there.  Just have a look at the pad and around that place to find out whether there is anything suspicious.  If you suspect anything, immediately point it out to the cashier, explaining your doubts.

4.    Always select a pump with a sealed sticker.  In this manner, you can reduce the risk of using tampered pump.  If you feel the seal of the pump is broken or slightly damaged, avoid using it and inform about it to the cashier.  If on a particular gas station you find many pumps with the damaged seal, avoid using such gas station.

5.    You should check your credit card statements routinely.  By doing that, you will be able to know quickly about the unauthorized entries.  Realizing quickly the clues of identity theft is important for preventing huge damages.

You cannot avoid filling gas at the pumps.  However, if you are watchful and particular about some small things, you can reduce the risk of identity theft to a great extent.

By: Chintamani Abhyankar

In this article I would like to conduct a personal finance software review of the Quicken product offerings designed for personal use. There are several personal finance software products on the market that do wonderful jobs of helping families manage their finances, but I am most familiar with Quicken as I have been a user of its products for over eight years. I have been completely satisfied with the features Quicken provides and would like to review and compare the benefits that its product offerings deliver.

Quicken Starter Edition

Formerly known as Quicken Basic, the Quicken Starter Edition is an excellent solution for individuals who will be using personal finance software for the first time. The three main features the Quicken Starter Edition delivers are: (1) balancing of your checkbook electronically, (2) tracking how you spend your money by being able to categorize purchases, and (3) monitoring and updating all your investment and banking accounts in one place. It basically provides a “one-stop shop” for all of your personal finance concerns.

Quicken Deluxe

Although the Quicken Starter Edition is a fantastic product, I believe the average family considering a personal finance software product should start with Quicken Deluxe. The reason is that, in addition to offering all of the features of the Quicken Starter Edition, Quicken Deluxe provides the capability to download banking and investment account transactions automatically. This makes reconciling your checking account, as well as your other accounts, extremely simple. In addition, Quicken Deluxe allows you to create savings goals and track their progress, store statements and records electronically, and plan for a new home, a baby, or retirement. For most families, this is the best place to start.

Quicken Premier

For those families who manage their own investments and require additional tools to monitor and measure their progress, Quicken Premier is the perfect solution. Quicken Premier offers all of the wonderful features from Quicken Deluxe plus several others, including: (1) generating various investment performance reports, (2) analyzing and optimizing your portfolio with special tools, (3) generating Schedule A, B, and D tax reports, and (4) setting investment alerts to notify you when certain conditions are in place. A truly remarkable tool for the do-it-yourself investor!

Quicken Home & Business

The three software solutions above are all excellent choices, but if you own your own business, none of these will be sufficient for the additional monitoring and record keeping required of you. Enter Quicken Home and Business. Though not as powerful a solution as Intuit’s QuickBooks products, it is the perfect choice if you have a small business with no payroll requirements, or especially for a part time business. In addition to providing all of the wonderful features of Quicken Premier, Quicken Home and Business allows: (1) tracking and categorizing of both business and personal expenses, (2) creating customized estimates and invoices, (3) generating profit and loss reports, (4) tracking vehicle mileage and other Schedule C items, and (5) monitoring upcoming bills and unpaid invoices. If you are considering a small part-time business, this solution is perfect to get you started.

In conclusion, Quicken offers a wonderful lineup of products that are designed to meet the varying needs that different families require. This personal finance software review has aimed to provide you with a basic overview of each product to help you decide which solution would be most appropriate for your family. Hopefully this discussion convinces you of the incredible value personal finance software delivers to its users. I can only speak from personal experience.

By: Charles Hebert