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Safe Shopping Tips for the Holidays

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The holiday shopping season is upon us.  Starting with Black Friday and running through Christmas, the next month will be the busiest shopping period of the year – as it always is.  Each year, online shopping has increased, due to convenience, availability, free shipping from many retailers.  This year, the trend will be even more significant, considering the unprecedented circumstances that continue to surround us with the global pandemic, driving more people to do much of their shopping online.  It also means cyber criminals will be even more dangerous than ever, trying to take advantage of people looking for great deals.

Be aware though, that not all deals are good ones – some are likely to be scams targeting unsuspecting shoppers during peak periods where many people lower their guard in an effort to save or get popular items.  As you do your online shopping, keep a few simple rules in mind to help protect you and your personal information.

Check out sellers – It’s worth doing some research on online retailers, especially ones you don’t know and haven’t used previously, to make sure they are legitimate.  Online and social media reviews can be a good source of information, since customers are typically very quick to post about poor experiences and fraudulent site.   You can also look up companies at the Better Business Bureau.  The BBB also has a scam tracker site where you can look up (or report) scams.  It’s currently showing more than 200,000 scams.  If you’re buying through P2P services, like eBay, make sure you look at the seller’s history, ratings, and feedback.

Hard to find items – Be aware of offers promoting hard to find items.  Scammers often target buyers by offering deals on hard to find items.  Be aware of this and be sure to do your research on retailers.  Though it’s not always the case, if items are sold out at popular retailers – including the brands own e-commerce site – it’s not very likely they are available from other sources.  Your best bet is to shop early to avoid missing out on these items and setting yourself up to fall for a scam.

Be cautious with links – You’re likely to get countless emails from retailers promoting sales and gift ideas.  Many will be legitimate retailers you’ve purchased from in the past but, it’s almost a certainty there will also be fake ones looking to steal your personal information and money.  Some of the emails or texts you receive about amazing offers may contain links to fake websites.  Follow safe practices by carefully inspecting or searching any URLs before clicking on them, looking for typos or poorly written emails, and keeping an eye out for fake sites with URLs that are close to legitimate brands.  Instead of clicking on email links, you may want to search for brands and get to their sites that way.  Sales and specials are usually available directly from the websites as well.  If not, it may be a scam.

Use credit cards – Whenever possible, pay with a credit card.  Most major credit card issuers provide online purchase protection, so your liability will be limited, if any.  Some banks are also extending the same protections to their debit cards, so you should check with your bank to understand your liability.  Using a credit card instead of a debit care also means your primary bank account won’t be compromised if your card information is stolen.

Online payment platforms – Online payment platforms, like PayPal, Google Pay, Apple Pay, and others are another alternative available at many retailers.  The benefit is you are still using your credit card, but because you’re authorizing payment through the third-party platforms, your payment information is never seen by sellers.

Use only secure sites – Always make sure you are shopping on secure sites, indicated by the small closed padlock icon next to the URL in your browser.  While the icon doesn’t guarantee the legitimacy of the seller or the security of their payment system or website, it does mean you have a secure connection to the site, reducing risk of your data being intercepted.

Protect your accounts – Most retailers will allows you to make purchases as guests.  If you don’t have to, don’t sign up for an account with every seller, especially those you aren’t likely to use repeatedly.  For those you do have accounts with, follow your normal best practices, including strong passwords and two-factor authentication to protect accounts.  2FA typically works by sending a confirmation code to your mobile device to confirm your identity.

Security software – Hopefully, you already have a good security solution installed on your home and mobile devices.  They can help protect you against cyber criminals by alerting you when you are trying to access an unsecure or potentially fraudulent site, in addition to all the other security features that help keep your information safe.  As a regular course of action, you should make sure your software is always up to date.

Following these guidelines can certainly help protect you as you do your holiday shopping, but they are good steps to follow all year long.  But, even if you are careful, there’s always a chance your information may be exposed or you may make a mistake.  If you think something has gone wrong and you may have been a victim or fraud or exposed your information, contact your bank immediately to alert them and block your accounts.

9 Tips for Safe Online Shopping

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Not surprisingly, online shopping has increased significantly over the past four months, with restaurants and retail stores being closed and even those that were open using curbside pickup or delivery.  That trend continues, and even when the pandemic subsides, almost half of consumers say they will continue to use online shopping for home delivery or curbside pickup.

Many have found that online shopping is simply a more convenient option.  In many cases, it offered an opportunity to get items that were otherwise unavailable because stores were closed or items were out of stock due to high demand.  That’s all true, as long as the items arrive as scheduled.

But, many people have also reported not receiving their purchases.  In fact, the FTC says it has received more reports of problems with online shopping, with more than half saying they never received their items.

In some cases, there have been delays, or items have simply gotten lost in transit.  Companies like Amazon typically do a good job letting customers know when their items are delayed.  In many cases, if the item is lost somewhere in transit, Amazon will offer customers the opportunity to request a refund, even though the item may eventually still arrive.  It’s good customer service.

Over the past several months, thousands of unverified, fraudulent sites have popped up claiming to have many high-demand products available.  Once they receive payment, they simply don’t ship the items and, when customers call to inquire, they claim delays due to the pandemic to avoid being detected as fake for as long as possible.  It was a concern even before the pandemic, which only created another opportunity for fake sites.  Some of these sites even mimic legitimate retailers, making it even harder to tell what’s real and what’s not.

The good news is there are ways to limit your exposure to these scams.  Here are a few tips for smart online shopping to help you steer clear of any issues and make sure you get the products you order.

  • Try recognized brands first. They may not always have what you’re looking for, but it’s a good place to start.
  • Be wary of sites selling products that are in short supply, or name brand products at much lower prices than you would normally pay.
  • Make sure the website is and HTTPS site (not just HTTP), indicating a higher level of security. This is important any time you make online purchases.  Also click on the padlock next to the web address, which will give you even more information about the site’s security.
  • Also check the URL itself. Some fake sites use addresses very similar to legitimate sites to fool people.  If you typed in the address manually, double check it to make sure you didn’t make a mistake.
  • Keep your browser updated. Most browsers will warn you if you’re about to go to an unsafe site.
  • Also keep you security software updated. This is another tool to help avoid malware from suspicious sites.
  • Examine the reviews. Many sites pay for fake 5-star reviews that all sound about the same.  Look for a variety or reviews and ratings.  You can also use sites like Fakespot, which analyzes and rates the validity of reviews on sites.
  • Other resources are available to help check website reputation, like URLVoid or Google Transparency Report. You can also check the Better Business Bureau for its ratings.
  • Pay with a credit card. This may be the best way to protect your money when buying online, regardless of the site.  If something happens and you don’t receive your purchases, or if they aren’t as advertised, you can contact your credit card issuer to dispute the charges if.

Online shopping is often very convenient, and it can be a way to get items that aren’t readily available locally.  But, there’s no question scam sites are a growing issue.  But, scammers are successful because they rely on unsuspecting victims.  Arming yourself with the information and tools to avoid scams or low-quality product knock-offs will help keep you from being disappointed or losing money.

Buying a Home Doesn’t Have to Be Stressful

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By Paul Mulligan, Senior Vice President, Consumer Lending

Buying a home can be a stressful experience.  Even if you’ve done it before and are looking to move, upgrade, or downside, it takes some work.  If you’re a first-time buyer, it’s likely to be an even more nerve-wracking experience because you don’t know what to expect.  Whether you’re ready to start shopping for a home now, or if it’s part of your future plans, here are a few things to consider that can help make the process a little smoother for you.  Especially in the current environment, with fewer houses on the market, being prepared can make it easier to act quickly on the house you want.

Down payment – Look at how much you have saved for a down payment.  If you haven’t started, that may be the first place to start.  Putting more down on your home initially will reduce your monthly mortgage payments, but you want to make sure you don’t drain your bank account completely, because there are always things that seem to come up when buying a home, whether it’s repairs, additional furniture, or other things.  Also look into how different down payment amounts might change your interest rates, mortgage insurance, and other variables.

Know your costs – There are any number of additional expenses that can come up during the home buying process.  In addition to your regular monthly expenses, make sure you know what to expect in terms of insurance, inspections, legal fees, and other costs you might incur during the process.  Some are small, but others can be larger expenses that could impact your down payment or savings.  Don’t forget moving expenses.

Assistance programs – The local bank in the area you’re looking to buy a home may have first-time home buyer programs that might provide a number of benefits.  The Milford Bank, for instance, offers an application fee refund, discounted interest rates, prequalification certificates, and low down payment options.  Milford, Stratford, West Haven, and Orange and eligible for the first time homebuyer program.

Check your credit report – One of the first things your lender is going to do is check your credit report.  Make sure your report isn’t showing any inaccurate or fraudulent activity.  If there is something suspicious, you will want to give yourself enough time to address it.  You may also want to avoid opening new lines of credit before applying for a home loan, since that could impact your credit score.  The truth is, you should check your credit report regularly.  Since each of the three major credit agencies is required to give you one free credit report each year, you can easily do it three times a year without incurring any cost.

Compare lenders – There are plenty of lenders out there.  Do your homework, don’t overlook your local bank, and consider more than rates. Local institutions, such as The Milford Bank, often offer more personalized service and are certainly much more easily accessible if you have questions or if problems come up.  They can also provide easy access to additional financial services, including future home equity loans when you’re looking to make larger improvements or renovations.

Plan ahead – As you start thinking about and looking for homes, think about your future plans.  For instance, if you’re also thinking about starting a family, you may want to make sure you have enough space without having to immediately move again.  That could mean giving up a few nice-to-have features in exchange for a little more space, in order to stick to your budget.  On the other hand, if you’re serious about relocating when you start a family, or for any other reasons, you may want to consider a slightly smaller home that will allow you to save a little more

The fact is, if you’re currently renting, you may find you can get into a home of your own for something very close to what you’re paying in rent – or less – especially if you’ve prepared well and planned ahead.  You’ll also have the added benefit of being able to deduct mortgage interest from your federal income tax.  But, don’t go into it without having all the information you need.  Talk to your bank’s mortgage specialists professionals and your tax planner.  They can help answer any questions you have, including how much you can reasonably afford to spend on a home.

 

Staying Financially Healthy During the Coronavirus Pandemic

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By Pam Reiss

As the world continues to cope with the COVID-19 pandemic, life as we know it has come to a grinding halt. Millions of us are working from home, our children are getting their schooling through videoconferencing, and our normal social and sports activities are in limbo.

Unfortunately, the situation can create some uncertainty around how to manage financially. Whether you’re currently working or not, it’s very likely you’ve been thinking about how to manage your finances during this time. The good news is at least some typical spending has naturally been cut because we’re all staying at home. But, there are many ways you may be able to keep your financial situation as stable as possible and stretch your budgets a bit.

Takeout vs. cooking – Ordering takeout or delivery is a great way to support local businesses during the crisis, but if you need to cut your spending, since you’re at home anyway, try limiting how often you order out. Instead, enjoy more home-cooked meals. There are many resources online for inexpensive, healthy meals. You can plan your entire week’s meals, make a complete shopping list, and make just one trip to the grocery store. You can even have one night of the week reserved for leftovers. If you want to continue to support a few local restaurants, set aside one or two days of the week for that.

Buy what you need – We’re still able to go to the grocery store, despite having to follow public safety guidelines. If you initially stocked up on non-perishables or frozen items, start using those instead of constantly buying more. Also, when you’re at the grocery store, there are still many items on sale each week. You can check out your grocery store’s flyer online to see what’s on sale, and plan your meals for the week accordingly.

Other ways to save – Take a look at some of the other things you’re spending on each week and see where you can cut a little out of your budget. Things to look at include video services. If you’re a cable subscriber, you might think about switching to a lower service tier, at least temporarily, or if you have multiple streaming services, consider cutting one of more of them. The monthly savings can add up quickly, and you can certainly find other ways to entertain your family.

Low interest rates – With interest rates dropping, this may be a good time to look into refinancing your mortgage or student loan, or even consolidating multiple loans. While there will be paperwork involved, lower interest rates can provide significant savings each month.

Emergency fund – If you’ve been following good financial habits and have built up an emergency fund, don’t automatically fall back on it. First take a look at ways you can reasonably adjust your spending. Then, if you find you need to dip into it, you can hopefully use just a little of it. If you’re fortunate enough to be working, this is a good time to add to or start your emergency fund. Since at least some of your normal extracurricular spending has been put on hold, consider putting that toward your emergency fund. You never know when you’ll need it.

Investment funds – It can be difficult watching retirement accounts and other investments lose money with the current market instability. The good news is they have historically bounced back reasonably quickly. Before you move or sell your investments, talk to your financial advisor, who can give you advice on whether it’s a smart move or not. Making a rash decision could actually end up hurting your investment funds.

Protect your credit – If at all possible, continue to pay your bills on time. If you’ve been using your credit cards, at the very least, pay the minimum on those to avoid hurting your credit score. If you are in a situation where you can’t pay some of your bills, contact your lenders. some lenders are allowing extra flexibility with payment terms or interest rates to help during the pandemic. You should also check your credit reports regularly. Fraudulent activity often increases during crises, and consumers and businesses are under a constant barrage from cyber criminals. Be extra cautious with emails, websites, and phone calls. There are thousands of malicious COVID-19 websites out there, and many phishing emails and phone calls looking to exploit uncertainty and fear.

The good news is most of the financial resources you normally have at your disposal are still available, though not in an in-person capacity. But, you can still contact us if you need advice.  Even though we’re all dealing with this pandemic, you can do things to help keep your finances in order and limit any long-term impact.

What Does the New FICO Scoring System Mean?

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by Paul Mulligan, SVP, Retail Lending

When you apply for a loan, lenders have access to a variety of information they use to decide whether to give you a loan and at what terms.  The most popular of those resources is your FICO score, a three-digit rating based on information in your credit reports, which helps lenders decide how likely to repay a loan, how much you can borrow, the length of you loan repayment period, and your interest rate.

While FICO scores give lenders a quick and consistent way to determine borrower worthiness, they also make sure you, the borrower, get a fair credit assessment and access to the funds you need.  FICO has become the de facto industry standard for lenders.

This month, FICO has updated its scoring system for the first time since 2014, which could impact your scores.  The new scoring places more emphasis on trend data in your credit report, looking at your credit utilization and payments over the past two years, as opposed to only current balances.  For instance, new data might include whether you tend to pay off balances quickly, carry extended debt, or consolidate loans, as well as your credit management predictability.

The other major change reflects changes in credit reports.  Tax liens, insurance-paid medical collections, and judgments are no longer part of credit reports, and healthcare defaults won’t appear on credit reports for at least six months.

At the end of the day, though, the real question is, how will the new scoring impact you?

The new scores will be less forgiving of risky credit behavior.  That means, if you regularly run up your credit, don’t pay off balances consistently, carry too many credit cards, or consolidate debt into personal loans in order to free up your credit cards, you may see your score go down.

On the other hand, some spending habits that may have previously been viewed negatively may no longer hurt you.  For instance, if you run up seasonal balances – such as during the holidays or summer vacations – and then pay them off, your score may not be negatively impacted because those are predictable one-time spikes, not regular habits.

Ultimately, what you need to keep in mind is the basics of good credit haven’t changed.  Payment history (35%) and credit usage (30%) are still the two biggest components of your FICO score.  If you follow good credit practices – pay your bills on time, keep balances below your credit limits, and don’t apply for too many new lines of credit (or too often) – you should have nothing to worry about.  In fact, if you manage your credit well, the new scoring could actually improve your score.

If you’re concerned about your credit rating and want to work to improve your score, the sooner you start following good financial habits and budgeting, the faster you can see positive change.  Of course, it’s not always easy, so if you need help or want advice on how to become more responsible with your spending, talk to our specialists.  They can provide information on financial best practices, budgeting and saving tips, and improving your credit.  On the other hand, if you have managed your credit responsibly, you probably don’t have anything to worry about.  Just continue to follow smart banking habits.

What you need to know about using P2P payment apps

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By Lynn Viesti Berube

One of the unique features about today’s app-centric society is there’s an app or just about everything, it seems.  It’s great to be able to download apps and take care of so many things on your mobile devices.   On the other hand, because these apps tend to be fairly targeted – most try to solve a single problem – they don’t always offer quite the level of flexibility or functionality users might want.

Take mobile payment apps, for instance, like Zelle or Venmo, which are becoming increasingly popular.  They are designed to make exchanging funds between individuals easier using digital technology.  But, they are not necessarily intended for all transactions.  Both companies have been clear that their intended use is for payments between friends or other people who know and trust one another.  For things like paying a share of a dinner bill, sending an entry fee for a fantasy sports league, or getting in on a group birthday gift, apps like these make transactions fast and simple.  These are cases where one individual outlays funds for an activity, and others need to pay their share.

But, as with any digital transactions, there are risks that users should be aware of.  Here are a few simple tips to keep your apps, accounts, and money safe while letting you enjoy the convenience of P2P payment apps.

Intended uses – Use the apps as they are intended.  If an online retailer asks you to pay using a p2P app, you should be suspicious.  Reputable online retailers should offer payment methods that don’t require immediate P2P transfers, such as credit cards, PayPal, and other means.  If you’re paying for services, such as a snowplow service in the winter, using a P2P app, you may be using local residents not set up to receive credit card payments, and sending a check each time it snows can be a nuisance, so a P2P app might be the best option.  At the very least, make sure you know who you’re paying, use only reputable providers, and make sure you’ve received the service before paying.  Consider sending a check the first few times to make sure the relationship works out.

Identity – It’s easy to make a mistake when typing an email, phone, number or username.  Double check whatever identifier you’re using to send money to someone.  Once the money has been sent, it’s hard – often impossible – to get it back, so taking the extra time to get it right can reduce potential headaches.

Send a test – If you’re not certain you are sending to the right person, send a small amount as a test and confirm they received it before sending the full amount.

Security – Follow the same security principles as you would for any other application or website.  Use the highest level of security they offer, including using a PIN or fingerprint ID for transactions.  If the application offers two-factor authentication, be sure to use it.  While this adds an additional step when using the app, it also adds an additional layer of protection that help keep you account secure, even if your credentials are compromised.

Deposits – Some apps place funds you’ve received into a mobile wallet until you manually transfer them into your bank account.  This can sometimes take several days to process, so once you have approved the transfer, check to verify that it actually went through.

Fees – Some P2P payment platforms charge fees for certain kinds of transactions.  Make sure you know what your app’s policies and fees are so you won’t be surprised and can account for fees when sending or receiving money.

Settings – Always check your app’s privacy and sharing settings.  They may have default settings that make information available to others that want kept private.

Kids – Many parents want to give their children access to P2P payment apps to make it easier for them to participate in various activities.  You probably don’t want to give them full access to your credit card or bank accounts, so take the trip to your local bank to see what options they might be able to offer, such as a prepaid debit card to link to your child’s app.  If they are part of one of the payment platform networks, they likely are well versed on the best ways to let your kids use them.  Of course, before anything, make sure your child’s device has security protocols enabled, and talk to them about potential security risks and how to avoid them.

 

Peer 2 Peer Payment Apps Give Consumers More Choice

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By Celeste Lohrenz

As it has been with nearly every industry, digital technology is changing the way people bank.  Online tools and mobile apps are making it easier for people to manage their finances, giving them modern options to replace traditional options.  P2P (Peer To Peer) payment apps, for instance, have become highly popular as a means of exchanging funds between individuals.

While check payments are still very popular – even with Millennials, new P2P payment users are nearly evenly split between those younger than and older than 45.

It’s really about having options.  If there one thing a digital economy has proven  it is that people want convenience.  They want to be able to transact using whatever methods are most convenient for them at the time.  That may mean going to a local bank office to understand the differences between home equity loans and HELOCs.  It may mean putting a check in the mail for a monthly car payment.  It may mean going to an ATM to take out cash for dinner.  It may mean putting a new TV on a store credit account because of a no-interest offer.  Increasingly, though, it also means using P2P apps to settle with friends, relatives, colleagues, or others.

For instance, Zelle – a mobile payment platform whose parent company is actually owned by seven major banks – delivered $49 billion through 196 million transactions in Q3 2019 alone, a year-over-year increase of 58% in transaction value and 73% in transaction volume. The Milford Bank is happy to now offer Zelle to our customers as a further option to your banking experience.

There are many reasons P2P payment apps such as Zelle are growing, but convenience is at the top of the list. Zelle offers a simple alternative to get money to other users quickly – if both parties are signed up with Zelle for instance, funds may be available within minutes.  Zelle is available on both Android and iOS platforms, making it easy to transfer money to split a dinner tab or utility bill, regardless of what mobile devices your friends use.

But, perhaps the biggest benefit Zelle offers is trust.  The biggest reason consumers avoid mobile payment apps is lack of trust.  In addition to being operated by a consortium of the biggest banks in the country, Zelle partners with other financial institutions so those banks can make Zelle transactions available through their own mobile apps and online resources – as opposed to having to use a third-party app.  Sending or requesting money is as simple as logging into The Milford Bank’s mobile app or online account and choosing the person to send funds to using your mobile contact list or entering their phone number or email address.

Along with The Milford Bank, more than 600 financial institutions have signed up to be part of the Zelle Network, with more than 250 already online and processing transactions.  In all, more users representing more than 5,500 banks have successfully completed Zelle transactions.

Are Millennials Putting Themselves at Risk with their Digital Habits?

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By Pam Reiss

According to the FBI’s Internet Crime Complaint Center (IC3), the number of reported incidents of cyber fraud continues to increase, reaching to 351,937 in 2018, 16% more than 2017 and a 30% increase from 2014.  Losses from these incidents are growing even faster, reaching more than $2.7 billion last year, an increase of 90% from 2017, and almost 240% more than 2014.  The FTC, which collects data on all sources of fraud, are even more staggering, registering almost 3 million complaints last year alone.

What’s alarming is that no age group is immune.  While there is a correlation between age and amount lost according to FTC data, there is also a reverse correlation between age and frequency of fraud loss.  The median loss increases with age, and Americans 80 and over tend to experience significantly larger losses than any other age group.  But, they are also the least likely to experience loss due to fraud.

In fact, younger Americans under 30 appear to be much more susceptible to loss through fraud than other age groups, falling victim to some sort of fraud three times more often than senior citizens.  This is particularly alarming because it points to younger generations having habits that make them easier targets, which could place them at risk for larger losses as they get older and their savings grow.

A large part of it is the nature of digital natives – Millennials and post-Millennials.  Growing up with the world at their fingertips, they have been immersed in a social environment and are willing to share just about anything.  They have built an resistance to fear of sharing information, and the more “friends” and “followers” and “likes” they have, the more successful they feel, often with little regard for the source of acknowledgement.

That world of social media acceptance has created a false sense of trust, opening the door for criminals, who only need to collect a few pieces of information in order to accomplish their goals.  It’s very easy to set up fake digital personalities to collect personal information or to create entertaining online quizzes to show your IQ, what Star Wars character you would be, or other similar social interactions.

This willingness to share, combined with younger people’s inherently higher level of trust (perhaps we should call it naïveté), makes them easier targets than older generations, which are less likely to trust engagements from people or entities they don’t know.

Whether the result is providing personal information that can lead to fraud, or clicking on malicious links in appear to be legitimate, younger adults can often be more easily manipulated by con artists and cyber criminals.  The good news is there are a number of easy tips that can help keep everyone – young and old – safe.

  • Check senders’ actual email addresses (not just names, they can be falsified)
  • Don’t click on links unless you are sure they are legitimate
  • Don’t open attachments unless you are sure they are intended for you – verify with senders if needed
  • Don’t share personal information with anyone you don’t know, including birthdays and birth cities. Most entities that need this information already have it.  This is a common phone scam tactic
  • If you aren’t sure if a request is legitimate, don’t acknowledge it until you have verified it separately with the organization or friend asking for it
  • Don’t accept friend or follower requests from people you don’t know or who seem out of place
  • Always keep your cyber security software up to date on all devices
  • Monitor your bank and credit card accounts, as well as credit reports
  • Be aware of “free” offers – you can rarely get things for nothing
  • Don’t send money to anyone who isn’t a close friend or family member
  • Be on the lookout for “URGENT” requests for information or money – this is telltale sign of scams
  • Don’t engage in any financial or other sensitive transactions over public or other unsecured WiFi networks – they can easily be hacked and your data intercepted.

Following these simple steps will help keep your identity and finances secure.  It’s inevitable, however, that you will be engaged by a fraudster.  When that happens, be sure to report it.  The more information authorities have, the better then are able to connect scams with their perpetrators and hopefully catch them.

Hopefully, it won’t happen, but if you think your personal or financial information has been compromised, contact The Milford Bank immediately.

 

Identity Theft vs. Identity Fraud: What You Need to Know

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By Tyler Haskell

Identity theft and identity fraud are becoming all too common today, with the economic impact to banks, businesses, and customers reaching well into the billions annually. In 2018, roughly 14.4 million American adults were victims of identity fraud, with losses totaling $14.7 billion. The two terms – identity theft and identity fraud – are closely related, but aren’t the same, despite often being used interchangeably.

Identity Theft
Identity theft takes place when criminals acquire personal data, which is then used for subsequent illegal activities, including identity fraud and the sale of information to others. This information can include any number of PII (Personally Identifiable Information) data, such as social security numbers, credit card numbers, bank accounts, driver’s license numbers, passwords, and more.

There are many ways criminals can steal personal data, from advanced hacking techniques to intricate scams to burglary and dumpster searches. Corporate hacking instances have increased over the past years, with many high-profile breaches being featured in mainstream news, from retail stores to healthcare organizations. The breaches have resulted in millions of customers’ data being stolen. Mobile devices are also a high-value target, simply because of the incredible amount of data stored on them.

Identity Fraud
Identity Fraud happens when criminals use stolen personal data for illegitimate transactions. These may include fraudulent purchases, opening new bank accounts or credit cards, initiating loans, and more.

Identity fraud impacts not only the victims of identity theft, but also the other organizations that become part of the fraudulent activity: merchants, banks, credit card companies, etc. The truth is, everyone is impacted in some way because businesses build the cost of fraud into their pricing structures to help cover their losses.

Protecting Yourself
Recovering from identity fraud is a daunting task that can take 200-300 hours of time and cost $1,000 or more. What’s more, these accounts can appear on credit reports for extended periods, making it difficult for victims to get legitimate credit.

First and foremost, protect your data. Don’t share passwords or account information. Don’t lend your credit cards or IDs to others. Make sure you have high levels of security on your mobile devices and use highly secure passwords on your online accounts – and don’t reuse passwords. Also use two-factor authentication whenever possible.

Be aware of the countless scams being conducted via phone and online. If you even remotely question a request for information or an offer, hang up and call the institution back yourself to verify the request. Legitimate organizations don’t usually ask for sensitive information without you having contacted them first.

Be sure to check your credit report regularly. We can assist our account holders with this by activating Credit Sense on your online and mobile banking app. Credit Sense is a tool that will help you improve your financial well-being. Credit Sense gives you up-to-date personal credit information including credit scores, credit usage, total balances, payment history, credit age and recent credit. You can refresh your credit score as often as you need and get tips on how to improve it. Credit Sense also offers credit monitoring, which gives you protection from fraud with alerts notifying you when something has changed in your credit profile.

While it’s hard to keep your data completely safe, following these simple precautions and staying alert can help you avoid the hassles and financial burden of identity theft and fraud. To help you with best practices for avoiding identity theft, contact us to learn how we are helping protect your identity and funds.

Safety Tips for Online Banking

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By Dave Wall

As with most services today, banking has moved into the digital world. Online banking provides an easy way to manage personal finances quickly and conveniently, without the need to worry about mailing checks to pay bills or going to the bank for simple transactions. But, the rise of digital commerce gave rise to a cyber underworld of hackers that requires caution and diligence with online activities, especially those that include financial transactions.  To keep you accounts and personal information safe, there are several best practices to follow when using online banking services.

Strong Passwords
Always make sure you use strong passwords that are not easily guessable. They should be long and include both upper- and lowercase letter, numbers, and other characters.  Using names, birthdates, and other easily guessable personal details is not recommended.  Even with the number of high-profile hacks featured by media outlets, some of the top passwords in use include “123456” and “password.”  Avoid using the same password for multiple accounts.  That way, even if one is compromised, your other accounts will be safe.  Change you passwords regularly.

Secure WiFi
Only use secure WiFi networks. Open, unsecure public WiFi networks are an easy target for hackers, who can intercept data transmitted between you and the bank.  The safest policy is to limit your banking activity to your secure home network, but if you need to make transactions while away from home, use secure networks, or even use your mobile device’s cellular connection instead of WiFi.

Secure Websites
Make sure any website you use for financial transactions is secure by checking the URL. If it begins with “https” the site is secured with an SSL certificate.  Chrome browsers are starting to identify non-secure sites with a “Not Secure” label starting this month to help identify them.

Mobile Devices
If you are using a mobile device for your financial transactions, using the bank’s official mobile app is a good option. It is often even more secure than websites and is much less susceptible to hacking.  Make sure you update the app when required, and while most users tend to avoid automatic app updates, setting your banking app to update automatically ensures you’ll be using the current version with the latest security measures.  Turn off your Bluetooth connection when using your mobile device.  Bluetooth signals can be hijacked, just like open WiFi, allowing hackers to intercept your data.  This is a good policy at all times when not using your Bluetooth capability for communication.

Account Security
Regardless of how you access your accounts, it’s advisable to request text or email alerts whenever transactions are made or if balances drop below a certain threshold. This immediately alerts you if any unauthorized transaction has taken place and allows you to react quickly.  If available, you should always enable two-factor authentication on your accounts.  That means you will have to use two means of authorizing yourself as the user, but it makes it much more difficult for hackers to gain access, even if they have gotten your password.  One example of two-factor authentication is entering a required passcode to be entered, which is sent to a specified mobile number when a login is attempted.  Similarly, disable any automatic logins on your devices.  While logging in each time takes additional time, the added security can make sure your accounts aren’t accessible to hackers gaining access to your device.

Separate PC for Banking
If you have access to a separate computer to use only for your banking activity, you can reduce risk of threats from gaming, web browsing, email, social media, and other activities. If you have an old laptop or PC that you’re not using anymore, consider cleaning it up, updating the operating system and browser, and using that as your dedicated banking device.  It may not be powerful enough for gaming, streaming videos, and other popular activities, but it can still be very useful for securing your online banking.  If you don’t have access to a separate computer, you can still use a dedicated browser – one you don’t use for any other online activities.  That will still reduce risk.  Regardless of the device, make sure you keep your antivirus, browser, and operating system up-to-date to ensure you have the latest security patches.

Be Aware of Scams
Every day, hackers and scammers send countless fake offers in an effort gain access to devices and personal information. If the offer sounds too good to be true, it probably is.  Delete suspicious emails and texts immediately, and never share account information online.  Similarly, we won’t ask you for account details or other personal information over the phone unless you have initiated the call.  If you aren’t sure if a call is legitimate, hang up and call back.

Check you Accounts Regularly
Even the most diligent customers can have their account information or identities stolen from other sources. It’s a good policy to monitor your accounts and credit report regularly to check for any unauthorized accounts or transactions.  The Fair Credit Reporting Act requires each of the three national credit agencies to provide a free copy of your credit report once every 12 months.  That will allow you to check your credit report every four months at no cost.

Regardless of what transactions you’re making online, following these guidelines will help protect your assets and credit standing.

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Links to third-party sites are provided for your convenience only. These sites are not within the control of The Milford Bank and may not follow the same privacy, security, or accessibility standards as The Milford Bank. The Milford Bank does not endorse or guarantee any offerings from the third party providers, nor is The Milford Bank responsible for the security, content or availability of any third-party sites, or their partners.

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