Friday Financial Five – May 23rd, 2014
Dan Forbes, GoLocalProv Financial Expert
Friday Financial Five – May 23rd, 2014
One of the individuals who probably should not be trying to capitalize on the 2008 financial crisis with a book is former Treasury secretary, Timothy Geithner. He was clearly a central player, but frequently seemed overwhelmed during the crisis, especially when explaining the rationale for the government’s actions. He has conceded that offers to resign were rebuffed. In terms of the success of the bailouts, Geithner stated in a recent interview that the recovery suffered from an overreaction in the public sector in terms of increased austerity and spending cuts.
Mortgage rates head down again
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTMortgage rates are still heading down just in time for the busy season in the real estate market. The most recent average 30 year rate is 4.14%, according to Freddie Mac. There are arguments on both sides of where the housing market is headed, but no one can argue that those financing the purchase are still doing so with historically inexpensive money. Housing bears cite continued employment issues, stagnant income levels, student debt, and a trend for young people to rent longer.
Millions of people on federal disability
One of the federal programs needing immediate review and overhaul is the Social Security Disability system. New reports estimate the total number of Americans covered by the program has approached 11 million. Several outlets have identified numerous cases of fraud, and still the number of those claiming benefits is rising dramatically. If any insurance company approved claims at this level, without the government’s ability to raise taxes and revenues, it would be out of business. If SSDI crumbles, those truly deserving of the benefit will suffer.
Value your small business’ valuation
Talk to a small business owner about the details of the company’s operations, and he or she can usually talk for days. Owners know all the intimate details about the operations, the finances, and the environment that the business operates in. However, ask the owner for an approximate value on that business, and more often than not, get ready for a blank stare. It’s crucial for retirement planning, estate planning, and life planning that more business owners get focused on what might be their biggest asset. Online tools are a start, but most of the time a consultant or professional will be necessary to assist in the process.
WWE’s stock gets body slammed
Vince McMahon has long been considered a visionary but recent changes have put World Wrestling Entertainment in flux. The initial results of the move from Pay-Per-View to a subscription based service were disappointing, leading to the stock almost halving its value in one day. Estimates are that McMahon himself has lost over $300 million. There’s time for the company to rebound, as the market is currently thin for those wanting to watch muscle-bound humans pretend to fight. From an investment perspective, it does shine a light on possible dangers in holding individual securities, even if you’re the head of the company.
Dan Forbes is a regular contributor on financial issues. He is a CFP Board Ambassador. He leads the firm Forbes Financial Planning, Inc in Providence, RI and can be reached at [email protected] .
10 Big Companies with Recent Major Security Breaches
Epsilon
March 2011
Tens of millions affected
In March 2011, Epsilon, the world's largest permission-based email marketing service, announced that the names and email addresses of customers of Citigroup, TiVo, and many other U.S. companies, were exposed in a huge data breach. The hack affected names and email addresses stored in over 108 retail stores, major financial firms and non-profit organizations like College Board. At the time of the incident, Epsilon had more than 2,500 clients sending 40 billion emails annually.
Result: Epsilon notified clients of the breach on April 1. Epsilon's clients then notified their customers of the hack. Epsilon has stated that 50 clients were affected, but the exact number of names and email addresses has not been released. Computerworld.com estimated that "tens of millions" of people were affected.
Sony
April 2011
77 million customers affected
In the spring of 2011, Sony was hacked through its through its PlayStation Network twice. The first security breach exposed customers' personal information to hackers, but not their credit card information. The second hack, disclosed in late April, did result in customers' credit card information being stolen. The pair of hacks affected 77 million people.
Result: Two weeks after the breach, Sony released a PlayStation 3 firmware update as a security patch. The firmware required users to change their password.
Global Payment Systems
March 2012
7 million customers affected
In the spring of 2012, the credit card processor service Global Payment Systems discovered that 1.5 million credit card records had been stolen from its system. Additionally, roughly 5.5 million consumer records were compromised, bringing the total to 7 million.
Result: As a result of the breach, Global Payments was delisted until it could prove it was in compliance with security standards. In April 2013, the payment card networks returned Global Payments its client list after it proved it was compliant with security standards.
Zappos
January 2012
24 million customers affected
In early 2012, the online retail store Zappos announced that it had been hacked, exposing the names, addresses, phone numbers, partial credit card numbers, and email addresses of 24 million customers.
Result: One day following the cyberattack, Zappos sent emails to all customers directing them to change their passwords.
Adobe Systems
October 2013
152 million customers affected
In October, the computer software company Adobe disclosed that hackers obtained personal data for almost 38 million of its customers, including names, credit and debit card numbers, and expiration dates. In November, it was discovered that the hackers had posted the personal data of more than 150 million Adobe users.
Adobe Call Center: 1-800-833-6687
For more information, Rhode Islanders may contact the Consumer Protection Unit at the Office of Attorney General at 401-274-4400 or by email at [email protected].
Target
December 2013
110 million customers affected
In December, Target announced that 40 million customer accounts were hacked stealing encrypted PIN numbers, credit and debit card numbers, card expiration dates, and the embedded code on the magnetic strip on the back of cars. Additionally, 70 million customers' personal information was compromised.
Target Call Center: 1-800-440-0680
For more information, Rhode Islanders may contact the Consumer Protection Unit at the Office of Attorney General at 401-274-4400 or by email at [email protected].
Neiman Marcus
January 2014
1.1 million customers affected
In January, high-end retailer Neiman Marcus revealed more than 1.1 million customers were affected in hack. Between July 2013 and October 2013, customer payment cards could have been potentially visible to hackers. Additionally, 2,400 unique customer payment cards used at Neiman Marcus stores were subsequently used fraudulently.
Neiman Marcus Call Center: 1-888-888-4757
For more information, Rhode Islanders may contact the Consumer Protection Unit at the Office of Attorney General at 401-274-4400 or by email at [email protected].
Yahoo
January 2014
Up to 81 million U.S. users
Late last month, Yahoo disclosed that Yahoo's email customers may have had their passwords compromised through a third-party application. The web company recently identified a coordinated effort to gain unauthorized access to Yahoo Mail accounts, and notified RI Attorney General Peter Kilmartin. Upon discovery, the Company took action, urging users to reset passwords on impacted accounts.
Yahoo Call Center: 1-800-318-
Michaels Stores
January 2014
Number of affected customers yet to be determined
In January, Michaels Stores announced that it is investigating a possible data security breach that may have led to customers' debit and credit card information being compromised. Michaels has more than 1,250 locations in the United States, including four in Rhode Island.
Michaels Stores Call Center: 1-800-642-4235
For more information, Rhode Islanders may contact the Consumer Protection Unit at the Office of Attorney General at 401-274-4400 or by email at [email protected].
White Lodging - Marriott, Hilton, Sheraton, Westin
February 2014
Number of affected customers yet to be determined
This week, the hospitality company White Lodging Services announced that a data breach occurred at 14 of its properties including Marriott, Radisson, Renaissance, Sheraton, Westin and Holiday Inn franchises around the country. Compromised information may have included names printed on credit or debit cards, the actual numbers, the security codes and expiration dates.
White Lodging Call Center: 219-472-2900.
For more information, Rhode Islanders may contact the Consumer Protection Unit at the Office of Attorney General at 401-274-4400 or by email at [email protected].
