Adam Smith, League City Branch Manager

Taxes, everyone has to pay them…and this time of year is when we are all getting our W2’s and other tax documents in order and ready to file. Everyone has until April 17th to file and then we wait for our returns. It can be a stressful time for some, and unfortunately criminals are taking advantage of that. IRS and tax scams have been around since 2013. Since 2013, over 10,000 people have fallen victim to this scam and have paid a collective $54 million dollars because of the phone scams, according to the Treasury Inspector General for Tax Administration.

How do these scams work?
You will receive a phone call that is usually from a blocked or unsolicited number, or even sometimes set it up to appear to be from the IRS. The “IRS” agent on the phone will claim that you have an outstanding bill or owe back taxes, and they will demand payment immediately. To make this threat seem more real, they will threaten if payment is not received, to have local law enforcement ready to come to your job or house and arrest you. For payment, they might want money wired to them or even a prepaid debit or gift card, or even in some cases a Best Buy or iTunes card. These are just a few examples of what could happen. The criminals will often change the script or try to increase the level of intimidation to make you comply.

So here are some important things to remember regarding the IRS and these scams:
• If you do owe back taxes, the IRS will never call you and demand a specific method of payment. If they are going to contact you, it will be through mail.
• If they do call you, they will not accept payment with a Best Buy gift card.
• They will not demand payment without giving you the right and opportunity to question or appeal the amount owed.
• The IRS will never call and threaten to bring in police or other law enforcement to have you arrested.
• Another common sign that it is a scam is that they will ask you for your personal information, such as your social security number, financial account or routing numbers, or debit card information.

What do I do if they call me?
There are several options. The first and easiest one – just hang up. You can call the IRS and simply ask if there is an investigation they have with you. IF they are threating to have you arrested, call your local police department and ask them about it. You can report the scam to the Federal Trade Commission. The website IRS.gov has a lot of valuable information regarding this scam and what to do.

We are here to help
At Gulf Coast Educators, we are here to help at any time if you feel that you might have been scammed. We can notate and put a password on your account to help secure it. If you want to contact the Credit Bureaus, we have the information that we can give to you to do so.

Being a trusted source of financial information, ensuring the privacy of your information, and identifying your needs and suggesting a solution that will improve your financial life are some of the service promises that we strive to do each day for our members. Whether that means helping you deal with potential fraud, or general day to day business, we will be here to assist you.

Sources:
https://www.treasury.gov/tigta/
https://www.irs.gov/

As consumers step up their online shopping leading up to the holidays, it’s a prime time of the year for identity theft. While you are busy snagging hot deals on Black Friday and Cyber Monday, thieves are phishing for your information.

Don’t let an identity thief take the jingle out of your holiday. Follow these 12 tips to keep your financial information secure during the holiday season.

Online or at home…

1. Update your antivirus software. Make sure that your computer security software installs updates regularly. And make sure your operating system is also up to date.

2. Don’t overshare on social media. Leaving home for a holiday trip? Don’t post this information publicly—be aware of your social media privacy settings.

3. Bring packages inside. Stealing delivered packages is not uncommon during the holidays. Packages left outside might also make thieves believe you’re out of town.

4. Don’t open suspicious emails or click on links. There is an increase in phishing scams around the holidays. Remember, the IRS, banks, and credit card providers will NOT ask for personal information in an email or by calling you. If in doubt, hit delete or hang up. Go to the company’s website or call using a phone number you looked up yourself.

5. Shop with familiar companies. Fake and unscrupulous internet retailers exist. Be suspicious of unbelievably low prices compared to other vendors. If you stick with stores you know, you may avoid sending your credit card to a thief.

6. Strengthen your passwords. When doing a lot of online shopping, it can be tempting to use the same password (or an easy-to-remember password) for multiple stores. Don’t do it! Your passwords should contain a mixture of upper and lower case letters, as well as numbers and symbols for maximum security—after all, you’re giving stores credit card and personal information. Don’t use the same passwords you use at your financial institutions.

7. Give from the heart, but be smart. The holiday season is a time when many give generously to charity. You’ll notice a big uptick in the number of emails, letters and phone calls you receive from charitable organizations. Use caution—especially with vague sounding or unfamiliar charities. Don’t give credit card information if a charity calls you. Instead, do homework, and if you wish to give, contact them directly.

When you are out shopping…

1. Watch your wallet and bags. Thieves know you’re distracted during holiday shopping. Keep track of your wallet at all times and don’t leave purses, shopping bags or your phone behind while you browse.

2. Use caution on public Wi-Fi. In the rush of Black Friday, be careful about buying items using your mobile phone or tablet in public. If you’re on your cellular network, your information should be safe (provided the retailer’s website is secure). But hackers can easily monitor your information if you use free (open) public Wi-Fi networks.

3. Keep track of your cards during check out. Lines are long and cashiers are tired. If you leave a credit card on the counter, there’s no way of knowing who may pick it up. Make certain you get your card back after every transaction. Return it to its place in your wallet—never drop it in a shopping bag or stick it in your pocket.

4. Guard your PIN. If you pay with debit cards, block the keypad while you enter your PIN.

5. Be careful what you say. Many stores ask you for personal information when you’re checking out. For example, you will typically be asked for your home address, phone number and perhaps your birthday when you sign up for a customer loyalty program. Don’t reveal too much information out loud in a crowd.

Sources:
CyberScout – CyberScout is leading the charge against hackers and thieves, providing identity management, credit monitoring and cyber security for more than 17.5 million households and 770,000 businesses. Contact your bank, credit union, insurance company or employer to find out if they offer CyberScout services.

Nowadays, more and more people prefer to do their shopping online. You can find many great deals, often with low-cost or free shipping. Having an easy-to-access marketplace that’s open 24/7/365 where any product is at your fingertips is great, but it’s important to be cautious when shopping online. The tips below can help ensure your purchases are secure.

Use credit cards instead of debit cards when shopping online. Credit cards generally offer additional protection compared to debit cards because credit cards are not linked to funds you own. Additionally, credit cards have a limit to the amount you are responsible for if your account information is stolen.

Use secure online payment services (like PayPal). With these services, the retailer never receives your financial information – that limits the chances of your information being stolen. You can even link your Gulf Coast Educators FCU debit or credit card to your PayPal account.

Always look for the “https” URL when shopping online. The added “s” at the end of “http” means that the site you’re visiting is encrypted, so your financial data (such as your credit card details) are kept private. In most cases, the text in the URL is preceded by a padlock symbol, which also means your information is protected.

Avoid shopping via public Wi-Fi. Instead, opt for your mobile phone network. It may be more convenient to use public Wi-Fi, but there are many risks. Most hotspots are not secure, so your information is available for any hacker to use.  If using your own data is not an option, there are many hotspot shield apps that you can purchase.

If an online deal seems “too good to be true” – avoid it. Be cautious of bait and switch scams and any website that looks questionable. Check to see if the site is reliable and if anyone has reviewed the product, company or deal.

Only share what’s required for your purchase. You’ll likely need to give your name, address, phone number, email and credit card information. It’s best to just fill in the required information fields that have asterisks.

Online shopping is great and convenient, but you should still be cautious when giving your personal information over the internet. If you do happen to have your card information compromised, GCEFCU will work with you to get your money back and everything taken care of.

To learn how to link your GCEFCU credit or debit card to PayPal, click here. To apply for a GCEFCU credit card, click here.

Information is for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author.

Sources:
https://www.webroot.com/us/en/home/resources/tips/online-shopping-banking/shopping-10-tips-to-safer-shopping-online
https://staysafeonline.org/stay-safe-online/protect-your-personal-information/online-shopping

Sept. 18, 2017 – With the recent devastation our area has seen from Hurricane Harvey, we have received many notices already from members being scammed by home repair companies. These remodeling and repair scammers will be out in full force for the next few months, so it is important to take caution.

Do Your Homework – Check their rating with the Better Business Bureau. You can search for any business by clicking here. You may also ask for recent letters of recommendation from past customers. If the business doesn’t have any, a good source of information from past customers can usually be found on the company’s social media pages, such as facebook and twitter. If the business does not have any letters of recommendation or social media pages, consider it a red flag.

Get Estimates – It is always a good idea to get multiple estimates from different companies. Have them print a quote with exactly what they will be doing so that you can compare the different contractors. This can also help you to negotiate prices.

Ask Questions – Ask your questions via email, so that you have in writing exactly what the company has promised you. Below are questions that you should ask before paying someone any money.

• How many projects like mine have you completed in the past year?
• Will my project require a permit?
• How long will my project take?
• What type of insurance do you carry?
• Will you be using subcontractors on this project?

Red Flags – How can you tell if a contractor might not be reputable? You may not want to do business with someone who…

• Knocks on your door for business or offers you discounts for finding other customers
• Just happens to have materials left over from a previous job
• Pressures you for an immediate decision
• Only accepts cash, asks you to pay everything up-front, or suggests you borrow money from a lender the contractor knows
• Asks you to get the required building permits

Sources:
https://www.texasattorneygeneral.gov/cpd/home-remodeling-and-repair
https://www.consumer.ftc.gov/articles/0242-hiring-contractor

We all know the value of insuring our home, life and vehicles. But have you ever considered insuring your car loan in case you’re unable to make the payments? Buying a car is the second largest purchase most of us will make in our lifetime, following buying a house.

Auto Loan Insurance, or “credit insurance,” covers the payments on your vehicle loan in an emergency or an unexpected life event. There are five common types of credit insurance:

Credit Life Insurance pays off all or some of your loan if you die. Life insurance protects you and your lender, and often you will find that a rate discount is given if purchased. Most people carry life insurance through their employer, which can be used to pay off your mortgage, college tuition, and every day bills, as well as other loans. Unlike regular life insurance, Credit Life Insurance doesn’t require you to have a medical exam for coverage. By making this purchase, if someone listed on the financing passes away, the loan is usually paid off in full.

Credit Disability Insurance covers your vehicle loan payments if you’re ill or injured and can’t work (per doctor’s orders). In most cases, credit life and credit disability insurance are offered as a package from a lender, but you can purchase them individually.

Involuntary Unemployment/Loss of Income Insurance covers your vehicle loan payments if you are laid off.

Credit Property Insurance protects your vehicle loan if your car is stolen or destroyed by an accident or natural disaster.

GAP Insurance adds more protection to your auto loan policy. It will pay the difference between the balance of a lease or loan due on a vehicle if you’re in an accident and your vehicle is considered a covered total loss. On auto loans, insurance companies value cars based on a high retail value, clean loan value, and rough condition value. In the past, insurance companies would pay high to clean loan value. However, in today’s market, the low value is mostly paid. GAP insurance is one of the cheapest ways to protect your loan, costing on average about $5 per month.

If you decide credit insurance is right for you, the following questions can help you find the right policy and provider:

• How much is the insurance premium? Will it be folded into my vehicle loan payments?
• Will this policy cover the entire amount of the loan or just a portion of it?
• Is the policy effective immediately or is there a waiting period?
• Is there a cancellation policy? If so, what are the rules around it?

Most lenders (car dealerships and credit unions) offer credit insurance products once you’re approved for a loan, but don’t feel pressured to take them. Do your homework and make sure each option is right for you.

To learn more about the credit insurance products available at Gulf Coast Educators, you can contact any of our lending team members by calling 281-487-9333.

Information is for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author.

SOURCES:

• https://www.federalreserve.gov/econresdata/2016-economic-well-being-of-us-households-in-2015-Automobile-Purchase-Decisions-and-Auto-Lending.htm
• http://www.zerohedge.com/news/2017-02-07/over-25-trillion-us-student-and-auto-loans-hit-new-record-high
• https://www.consumerfinance.gov/askcfpb/799/my-dealer-offered-me-credit-insurance-what-it.html