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Signs from Cards
Signs you should curb your credit card usage
By Chris O’Shea* Credit cards are helpful in many ways. But if they’re used incorrectly, they can become quite the burden. Here are some signs that you should be curbing your credit card usage.
Your budget is busted
Keeping a detailed budget is key to financial health. If you use a budget, you’ll have a section for paying off your credit card in full, every month. Paying your bills on time (even if you don’t pay them in full) in turn helps your credit.
However, if you don’t stick to a budget, or never even bothered to create one, you should be wary of using credit cards. If you don’t have any idea about monthly expenses, it’s way too easy to simply reach for your credit card to pay for something. Then, when the end of the month comes and the bill is due, surprise! You don’t have enough in your bank accounts to pay the balance. Now you’re looking at interest charges. It’s a cycle you don’t want to begin or continue. Create and stick to a budget so that when you do use your cards, you’ll be able to pay them off every month.
Your spending is off the rails
As USA Today notes, if you’re spending more than you should be, it’s time to press pause on your credit card usage. The best way to know if you’re spending too much? That budget we just mentioned. If you’re spending too much, dive into your budget and see where things are going wrong.
You’re deep in debt
It’s hard to climb out of credit card debt if you keep using your cards. If you’re only making minimum payments on your balance each month, the interest piles up quickly. Instead of continuing to add to the problem, craft a plan to dig out of the debt. Remove your cards from your phone and computer. Put them in the freezer. Whatever you have to do to stop using them while you pay down the debt.
*This guest article is from the “Your Money Blog” in ‘Mid Oregon’s Digital Banking Credit Savvy resource.’ It is made possible by Savvy Money. “Signs from Cards” by Chris O’Shea was published in July 2021.
Understanding the Different Types of Phishing Scams
Cybercriminals continue to improve the tools they use for phishing scams. They steal money, identities, credentials, and more every day from individuals and organizations. Even the most cyber-savvy users can be scammed if they don’t pay close attention. To protect yourself, it’s helpful to understand the different types of phishing scams.
Email Phishing Scams
Email is the most popular type of phishing scams. Victims open and act on phishing emails that include fake domain names and redirected URLs. The email’s subject line and content often look legitimate and designed to get a response. Cybercriminals use many tricks to gain your trust, hoping you won’t notice.
- Closely examine URLs, including spelling. Fraudsters transpose, add, and delete letters to misspell a web address that brings you to a duplicate, fraudulent website. Subtle details like leaving the “s” off of “https” in the URL is another red flag.
- Avoid following links or opening attachments in emails. Instead, type the true URL for the website because links can easily and quickly redirect you to bogus websites and attachments loaded with malware. Be sure to not misspell the domain to avoid Typosquatting attacks detailed below.
- Don’t trust, instead verify email senders, before providing any sensitive information at work and home.
Spear Phishing
Spear phishing is a version of email phishing scams that targets recipients by name, known interests, work relationships, friendships, and other details. With social engineering, scammers scour social media to gather information about targets. Using public information and data from breaches, cybercriminals develop targeted email attacks.
- Limit the information you post on social media, such as Facebook, Instagram, and LinkedIn, and other websites that spear phishers look to exploit.
- Use two-factor authentication (2FA) or multi-factor authentication (MFA) whenever possible. Each layer of verification ensures the right person is accessing accounts and not someone claiming to be you.
- Use artificial intelligence (AI) tools to alert you of compromised accounts.
Whaling
Whaling is a type of spear phishing that targets those at upper levels of management who control of funds. Leaders are not spoof-proof and are vulnerable to the same phishing tricks that target staff. Here are some tips to help ward off whaling.
- Verify Client Certificates are legitimate.
- Set email filters to a level that flags suspicious senders, even before they make it to an inbox.
- Financial transactions should have the highest levels of verification, including face-to-face verification tools.
Smishing and Vishing
Smishing uses SMS and text messages for phishing scams. The text message usually has a legitimate-looking link and sometimes includes the first or last few numbers of an account. Victims assume it is legitimate and then take steps that compromise an account and other confidential information.
Vishing attacks are voice calls, many robocalls, that intend to scare recipients into responding with confidential information.
- Never answer a text or phone call from a sender you can’t verify before supplying any information.
- Hang up and redial the phone number directly. Chances are you’re a vishing target.
- Never respond directly to a text message that’s looking for information or includes links.
- Go directly to the true source to verify the sender. Look up the real phone number or website URL and call or browse there. This approach will help determine if it is a legitimate request and whether your information is needed.
Typosquatting
Also called URL or domain hijacking (do-jacking), typosquatting uses incorrect spellings for URLs, or typos a user does without realizing. Minor deviations in spelling can bring you to a look-alike, spoof website. Many of these sites can disappear immediately after stealing your payment card and other information.
- Check and double-check URL spellings before connecting. Making sure every character, hyphen, and apostrophe is in place.
- Use previously bookmarked sites when possible.
Angler Phishing
One of newest and fastest-growing phishing scams is angler phishing. It uses social media spoof sites to trick users into providing information. These sites often masquerade as social media customer service and ask for sensitive information. They often threaten to close the account or take other action if the data isn’t provided.
- Address account issues only on the official social media website.
- Look for an official blue checkmark verification symbol, like those found on Twitter and Instagram messaging.
For more articles on phishing scams, cybersecurity and related topics, visit Mid Oregon’s Security and Fraud Center.
Your Mid-Year Tax Check-In: Consider these Tips for Potential Savings
Get your tax act together now by being more organized in the second half of 2021
Proper tax planning isn’t just for CPAs. The more organized you are now with paperwork and business practices, the better. Here are some tax tips to consider for the second half of the year.
Create a system
Whether you file your own taxes or take them to a professional, it’s always a good idea to keep the paperwork you’ll need organized throughout the year. If you want to work smarter, trade in your throw-everything-in-a-box tax prep method for labeled folders in a desk drawer or a separate file box. You could also consider using a software program. Generally, the IRS suggests you keep records for three years from the date of a filed tax return.
Good news for business meals
As more people get vaccinated and the world opens back up, now is a good time to take advantage of a temporary tax change that allows a 100% deduction for qualifying business meals through December 31, 2022. Typically, business meals are only 50% tax-deductible, but a temporary revision in 2020 allows you to claim the full meal for a limited time. Don’t forget to save your receipts and note your business clients.
Review and update your W-4 form
If you had a big tax bill this year and would prefer not to live through that again, you can change your W-4 form to increase how much is withheld from your taxes. Doing that will likely help you owe less next year. Ask your HR department for a new W-4 and make changes now so you can have more taken out for the remainder of 2021.
On the flip side, if you had a big tax refund, you can also update your W-4 form to reduce how much money is being withheld from your earnings. Getting a refund means you gave the government an interest-free loan. It also means you may be living on less than you have to. The IRS offers a federal tax withholding estimator to help people figure out how much they should be withholding.
Going back to school?
If you are thinking about going back to school or already took the leap and enrolled, you may be able to claim the Lifetime Learning Credit for graduate school or professional certificate programs, which can be worth up to $2,000 in 2021. To qualify, you must take classes at an eligible educational institution and your modified adjusted gross income in 2021 has to be less than $90,000 if you are single or $180,000 if you are married and filing jointly. And remember, tax credits are better than tax deductions, because they lower your tax liability on a dollar-for-dollar basis.
Consider a home office deduction
If your work situation changed in 2020 or 2021, and your side hustle became your full-time gig, don’t shy away from the home office deduction if you qualify. Historically, people have worried this might flag an IRS audit. But if you are an independent contractor or self-employed, and have a room (or area) in your home solely devoted to doing business, stake your claim. You can deduct a portion of rent or mortgage and other expenses that are attributable to the space that is specifically used for doing business, or you can simply deduct $5 a square foot, up to 300 feet.
File your taxes if you haven’t already
If you haven’t yet filed your taxes, get on it, especially if you are owed a refund. The only way to get a refund is to file a tax return. Plus, there is no penalty for filing after the deadline if a refund is due. Visit IRS.gov through Oct. 15 to prepare and file returns electronically.
And if you haven’t filed your taxes yet and you owe money — even if you can’t afford to immediately pay the taxes owed — you should still file a tax return as soon as possible to reduce potential penalties. The IRS offers options for taxpayers who owe the IRS, but cannot afford to pay the full amount at one time.
*This guest article is from the “Your Money Blog” in Mid Oregon’s Digital Banking Credit Savvy resource. It is made possible by SavvyMoney. “Your Mid-Year Tax Check-In: Consider these Tips for Potential Savings” by Jean Chatzky with Casandra Andrews was published in July 2021.