Cybercrime ring busted

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September 30th, 2010 - Posted by Kent

According to the Wall Street Journal, more than 60 individuals in the United States and Eastern Europe have been arrested for allegedly participating in a massive cyber crime ring. The group used a virus called the Zeus trojan to spy on infected computers and steal bank account information, resulting in a theft of $3 million.

The Journal reports that this bust is related "to the arrest of 19 people in London on Tuesday in a probe into an international cybercrime group that allegedly stole at least £6 million, or $9.5 million, from U.K. banks."

Nine of those recently arrested where living in New York, acting largely as money mules who transported the ill-gotten goods.

It's nice to see that law enforcement was on the ball here; it's too bad the same probably can't be said for those whose accounts were hacked. So much of cybercrime is preventable by the very people who end up its victims. While we can't say for sure that every person victimized was unprotected, an unprotected computer is much more likely to be attacked. You can protect yourself by installing Internet security software, and keeping it up-to-date.

Check out our reviews and comparisons of Internet security software, and learn how to keep your PC—and your bank account—out of the hands of hackers.

Does everyone have 3 different FICO scores, or is your credit score actually the FICO?

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September 30th, 2010 - Posted by Tasha

Q: Does everyone have 3 different FICO scores, or is your credit score actually the FICO? Do I need all three FICO scores, or will they too be very close in range to matter?

A: Yes, everyone has three different FICO scores: an Equifax FICO score, an Experian FICO score and a TransUnion FICO score.  This is because everyone has a credit report kept at each of the 3 different, privately-owned credit bureaus – Equifax, Experian and Transunion – so you have a different FICO score for each credit report.

There are different brands of credit scores, and each one uses it's own formula to calculate your credit score.  FICO is a branded credit score developed by a company called Fair Issac.  It is a fairly popular credit score, and is often used by lenders.  It is always good to know all three of your credit scores as they can vary substantially and you never know which one a lender might use, or they might use all three.

Unfortunately, the Experian FICO score is not available to consumers. The other two can be purchased through myfico.com.  However, most other brands of credit scores are just about as good as the FICO brand. For example, the three credit scores you get from Identity Guard will very likely be extremely similar to your three FICO scores.  And since these scores are based on the same three credit reports that your FICO score is based on, you can be fairly certain that any variation in these three scores will be mirrored in your three FICO scores.  Regardless of what brand of credit score you are looking at, the key takeaway is the description given each score – usually these are excellent, very good, good, fair and poor.

Mortgage fraud and identity theft: like chocolate and peanut butter

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September 29th, 2010 - Posted by Robert Siciliano

Robert Siciliano is a NextAdvisor.com Expert Guest Blogger

You don't need to own a house to become a victim of mortgage fraud. Heck, you don't even need to be older than three to be a victim. As long as the thief has a Social Security number, they can apply for loans in your name.

Lexis-Nexis Mortgage Asset Research Institute in Chicago shows that "the incidence of fraud in 2009 increased 7 percentage points over 2008's levels. In 2008, fraud reports rose 26 percentage points from the previous year. The institute collects and provides data – suspicious-activities reports, or SARS – to subscribers, including mortgage lenders. If you want to compare numbers, there were 67,190 such reports collected in 2009, compared with 63,713 in 2008, and 46,717 in 2007. The 2009 increase was small, but officials say they believe a lot of scam artists are going high-tech."

Law enforcement activities surrounding mortgage fraud across the U.S. have resulted in the arrest of thousands, according to reports. The utility of Social Security numbers as a means to obtain credit fuels the pervasiveness of mortgage fraud.

Some of the most devastating instances of mortgage fraud involve identity theft. Consumers not only have to be leery of questionable mortgage lenders, but also of others who might buy a home in their name.

Data from the U.S. Treasury Department’s Financial Crimes Enforcement Network has revealed that instances of suspected mortgage fraud have risen by 1,000 percent over the past six to seven years, reported the article in thisisyourmoney.co.uk, which went on to say the FBI’s financial crimes section has seen an 800 percent increase in its case load since 2003.

The apparent spike in mortgage fraud reveals one more line of attack that thieves exploit to hijack the financial identities of consumers.

The results of a research investigation by the Federal Bureau of Investigation recently revealed an apparent, significant upward trend in the incidence of mortgage fraud. Furthermore, homeowners who have Home Equity Lines of Credit (HELOCs) are prime targets for financial fraud, suggested a related statement from the Identity Theft Assistance Center (ITAC).

The best way to combat the threat is to transform Social Security numbers into something useless to thieves, who use these universal identifiers to obtain financial identities. Social Security numbers’ de facto role as universal identifiers has fueled a massive increase in financial fraud—simply because these numbers allow criminals to assume others’ identities. Given the scope of financial fraud, which costs billions of dollars every year, consumers need a way to deprive thieves of the ability to gain access to someone else’s finances. They must implement measures that render those Social Security numbers useless to thieves.

>> Check out NextAdvisor's Identity Theft Protection reviews and comparisons

Robert Siciliano is CEO of IDTheftSecurity.com, an identity theft expert, professional speaker, security analyst, published author and television news correspondent. Siciliano works with Fortune 1000 companies and startups as an advisor on product launches, branding, messaging, representation, SEO and media. Siciliano's thoughts and advice on all these matters appear often in both the televised and print news media including CNN, MSNBC, CNBC, FOX, Forbes and USA Today. He has 25 years of security training as a member of the American Society of Industrial Security. He is the author of two books, including The Safety Minute: Living on High Alert; How to take control of your personal security and prevent fraud. He's also partnered with McAfee to help raise awareness about the growing threat of identity theft and to provide tips on how you can protect yourself.

Nextiva Internet fax lowers prices

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September 27th, 2010 - Posted by Kent

Nextiva Internet fax service has always been the least expensive Internet fax service, but now it's gotten even cheaper. If you go month-to-month, the no-commitment plan will be $8.95. Amazingly, with a year commitment it's only $4.95 per month, less than $60.00 per year. Quite a bargain.

Check out our Internet fax reviews to see how Nextiva came out in our tests.

Where may I find reviews about the Playaway digital audiobooks?

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September 23rd, 2010 - Posted by Kent

The following is an actual user-submitted question:

Q: Where may I find reviews about the Playaway digital audiobooks?

A: You can try doing an Internet search for "Playaway digital audiobook reviews" but there aren't many reviews. We have not reviewed the Playaway digital audio books yet, mostly because we think Playaway is a pretty expensive choice for customers. Playaway audio books are primarily meant for libraries, or other lending institutions (they're also popular for those in the military, since titles can be easily traded). A Playaway audiobook comes preloaded on a dedicated media player, which is what makes them so expensive; it's like buying a new iPod shuffle with every audiobook. Popular titles are priced between $80.00 and $100.00. These same titles can be downloaded from Audible.com or a similar service for a $10.00- to $15.00-per-month subscription. If you want to avoid downloading, CD versions of books can be rented for about $20.00 per month from services like Booksfree.

We may, at some point review Playaway, but we think that for most users, it's just not a good value. Sure, I can see buying one at an airport at the last minute if I had nothing else, although, actually I'd probably just hop on the airport's Wi-Fi connection and download the book from Audible on my iPhone.

Check out our full audiobook reviews here.

Would external hard drives be backed up on the same online backup subscription?

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September 22nd, 2010 - Posted by Kent

The following is an actual user-submitted question:

Q: When the services refer to a backing up a single computer, does that include additional drives that are attached at the time of backup?

For example, I have a 2 terabyte external drive attached to my computer. Would that be backed up on the same subscription?

A: It depends on the service. Mozy and iDrive's online backup services include additional drives, but Carbonite's does not. Here's the info from a past blog post:

Mozy can backup any drive that Windows recognizes as "fixed." Operating systems consider hard drives "fixed," regardless of whether they are internal or external. DVD/CD-ROMs, media cards and some thumb or flash drives are not considered "fixed," and cannot be backed up.

You can tell if your drive is "fixed" by doing the following: Click Start Menu, then click My Computer. "Fixed" drives appear under Hard Disk Drives, while unfixed drives appear under Devices with Removable Storage. If you do not see these sections, click View > Arrange Icons by > Show in Groups. If your external drive is not "fixed," first copy the data onto one of your "fixed" drives, then select the data for back up.

Will checking my annual credit report and credit score lower my score?

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September 21st, 2010 - Posted by Tasha

Q:  Will checking my annual credit report and credit score lower my score?

A: No, it won't.  When you check your own credit information, it's called a "soft pull" or "soft inquiry" and won't affect your credit score.  For this reason, you can check your credit reports and/or scores as often as you like without worrying about it.  You can also sign up for a credit monitoring service, which checks your credit report daily, without causing any changes to your credit reports and scores.

This is different than a "hard pull" or "hard inquiry".  These occur when you allow a lender to check your credit, and may result in a slight drop in your credit score.  So the moral of this story is, feel free to check your own information as often as you want without fear of consequences, but be frugal in allowing others to do so.    And if you really want to stay on top of your credit information, sign up for a credit monitoring service.  As mentioned above, these services won't affect your credit score either.

If my "FICO" credit scores from all 3 credit bureaus are good, what other credit scores do I need to know before I apply for a loan, and how do I get those scores?

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September 20th, 2010 - Posted by Tasha

Q:  If I get my "FICO" credit score from all 3 credit bureaus and they are all within the same range (+/- ten points), what other credit score do I need to know before I apply for a loan, and how do I get that score?

A: You've taken a huge step in the right direction, as FICO is the most prevalently used credit score by lenders.  I also give you kudos for knowing that you have 3 different credit reports, one from each of the 3 credit bureaus.  I'm assuming you've read through each of your credit reports, to ensure they all contain accurate information.   Although you mention that your scores are pretty much the same across all your credit reports, there may be some sort of discrepancy which accounts for the 10 point difference.  Probably not anything big, but it does pay to fix any errors.

There are other companies that provide credit scores, but they generally use the same criteria as FICO (read about how your FICO score is calculated).  The 3 credit bureaus – Equifax, Experian and Transunion – each have their own brand of credit score.  Some major credit issuers have also developed their own branded scores.  Since all these scores are based on your credit history, as long as your credit history and FICO scores are in good shape, you should be OK.

Instead of worrying about all the different scores out there, it makes more sense to take a look at other factors creditors consider when extending a mortgage or other type of loan.  In addition to your credit scores and credit reports, potential lenders examine criteria like your income and employment history.  They then take all this information, combine it with their own underwriting policies, determine whether you will be extended a loan and, if so, what the terms will be.  This means that even if you have a good FICO score and a good income, if you've only been employed for 3 months and want a $700,000 loan, the lender may consider the credit risk to be too high to extend a loan.  In addition, creditors in different regions of the US may perceive your information differently.

The bottom line is that you shouldn't depend on a single creditor for your loan.  Shop around and compare offers to make sure you're getting the best one.

McAfee coupon code: 50% off

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September 17th, 2010 - Posted by Kent

Long-time Internet security favorite McAfee has brought back its famous 50% discount. Follow any links from NextAdvisor to McAfee and use the coupon code nextadvisor50 at checkout to get its Total Protection suite for $39.99. It's inexpensive protection for up to 3 PCs.

Check out our full Internet security software reviews here.

Oprah Book Club pick on audiobook: Jonathan Franzen's "Freedom"

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September 17th, 2010 - Posted by Kent

Oprah Winfrey has spoken, and her book club pick is Jonathan Franzen's Freedom. Want to join in on the Oprah phenomenon, but don't have time to read? Consider listening to it instead. Freedom is available from many of the audiobook providers we reviewed. Some options are downright cheap, and others quite a bit pricier. Here's a rundown:

Audible.com: With its introductory discount, you can get Freedom for only $7.49 by starting a monthly subscription plan. You can get one book a month, for 3 months before the price switches to $14.95.

Booksfree: Has it for rent on CD, and you can get it with their $22.49-per-month plan; you get a two-week free trial, and as soon as you're done with that title, you can send it back and get another.

Simply Audiobooks: Has it for rental as well. It's a much cheaper rental service, at $14.95 per month (with an annual plan), though shipping was a bit slower than Booksfree when we tried it out.

iTunes: You can download it from iTunes for $35.95.

Check out our Audiobook download and rental comparisons and reviews for a complete rundown on all the details.