April 2008 Financial Articles
Medical Identity Theft: Don’t Be a Victim
Five Ways to Save on Energy Costs
Smart Tips for Managing Your Debt
Protecting Your Child Against Identity Theft
Medical Identity Theft: Don’t Be a Victim | Top
Many people are familiar with identity theft, in which con artists use another person’s personal information to commit fraud. Identity theft encompasses a range of crimes, from using a stolen credit card to make an illegal purchase to employing a pilfered Social Security number to establish a new identity.
One truly alarming twist on this trend is medical identity theft, a crime that can threaten your family’s well-being. The Virginia Society of CPAs offers an overview of medical identity theft and steps you can take to avoid becoming a victim.
Anatomy of a crime
Much like other identity thieves, medical ID scammers steal personal data, typically insurance information or Social Security numbers. The difference is that these scams involve health care. These thieves may use your identity to get medical care or medications. That’s not the only danger, though. In some cases, dishonest health care providers or a scammer may use stolen personal information to file a false claim and receive reimbursement from an insurance company. If you are the victim of medical ID theft, you likely will not be aware that your data has been stolen and that your medical records now show a history of illnesses or procedures that you have never actually had.
An added danger
Unlike conventional identity theft, medical identity theft can actually endanger your health. If a scammer has medical procedures performed using your identity, that person’s medical history is now added to your own. Medical identity theft victims who go into the hospital for needed procedures have found out that their records show incorrect information about previous medical conditions. As a result of such mix-ups, patients may receive the wrong blood type in a transfusion or be given a drug to which they’re allergic. There are financial consequences as well. Victims often face credit problems after scammers ring up unpaid bills in their name, which can damage their credit ratings.
Look for warning signs
Medical identity thieves carefully conceal their actions, but there are warning signs that can alert you to a possible problem. For example, you may get a communication from your insurer or a bill from a physician that refers to an unfamiliar medical visit or service. You may also receive notices demanding payments for medical bills in your name. If any of these occur, contact the insurance company or physician immediately to find out more information. The World Privacy Forum also recommends that you ask your insurer for a listing of benefits paid in your name and request a copy of your current medical files from all your insurers.
Keep a personal health record
It’s a good idea to keep a personal health record that details any illnesses you have had, medical services you’ve received and medications that you take. It will help you answer questions about your health and identify potential medical ID theft when something on your records doesn’t make sense.
Know your rights
You have rights under federal law that can assist you in correcting inaccurate medical records. They include:
- The right to request copies of your current medical files from each health care provider. Please be aware that there may be fees for copying and postage if you request copies of your medical records.
- The right to have your medical records amended to remove inaccurate or incomplete information.
- The right to an accounting of disclosures — a record of who has been given access to your medical records — from your health care providers and health insurers. This is very important in tracking down where inaccurate information may have been sent.
- The right to file a complaint with the Office of Civil Rights at the federal Department of Health and Human Services if a health care provider does not comply with these rights. In addition, many hospitals have ombudsmen or patient advocates who may be able to help you obtain medical records or provide access to information.
Do you have further concerns about potential fraud risks facing your family? Your local CPA can help. Consult him or her with any questions you have on these or other financial issues.
The Virginia Society of Certified Public Accountants (VSCPA) is the leading professional association dedicated to enhancing the success of CPAs. Founded in 1909, the VSCPA has approximately 8,300 members who work in public accounting, industry, government and education. For more information, please visit the Press Room on the VSCPA Web site at www.vscpa.com, e-mail vscpa@vscpa.com or call (800) 733-8272. For more information on financial literacy topics like money management, or to search for a CPA in your geographic region, visit www.FinancialFitness.org.
Five Ways to Save on Energy Costs | Top
The average American household spends $1,900 a year on energy bills, according to the government’s ENERGY STAR program. Whether you’re preparing for the heat of summer or for winter’s frigid temperatures — or looking to lower your gasoline expenses — there are many practical ways to cut down on costs, according to the Virginia Society of CPAs. And when you reduce your energy use, the environment benefits from lower greenhouse gas emissions. The tips below will help you save money and do the earth a favor.
Conduct an energy audit
According to the U.S. Department of Energy, you can conduct your own home energy audit to identify problems that could be costing you money, such as drafts that let in cold air; insufficient insulation; poorly maintained heating and cooling equipment; or inefficient lighting. The department’s Web site (www.energy.gov) has instructions for conducting an audit. If you’d like to bring in an expert, many electric or gas utilities offer these audits for free or at a reasonable charge, so find out if one is available in your area.
Adopt environmentally friendly ideas
If you conduct a home energy audit, you may find that you can cut costs by taking money-wise steps that will also help the environment. For example, simply unplugging appliances when not in use will lower energy usage. Many appliances draw energy even when not in use. Another good idea is to close the blinds in the summer time to keep out the sun’s heat and to open them in the winter to let in natural warmth. Easy-to-implement ideas allow you to painlessly lower energy use.
Pick the right appliances
If you look for the ENERGY STAR label when selecting any number of products, you’re likely to use less energy, save money and help the environment. These products are not made by any one manufacturer, but they have all met energy-efficiency specifications set by federal government agencies. There are ENERGY STAR-qualified products in a wide range of categories, including household appliances, heating and cooling equipment, home electronics and office equipment. You can look for the ENERGY STAR label when you shop or find more information online at www.energystar.gov.
Turn off the lights
This is an easy step to take, but one that will make a difference every day to your bills and to the environment. Many people remember to turn off lights in unused rooms in their homes, but this smart step is sometimes forgotten in an office. According to the Natural Resources Defense Council, most of the energy used in the average commercial building is for lighting. Get in the habit of turning out lights at lunch or in empty offices or conference rooms.
Perform regular car maintenance
Your home and office aren’t the only places where smart steps will cut down on energy or fuel costs. It’s possible to save $100 a year on gasoline by keeping your car engine tuned up and your tires properly inflated.
Consult your CPA
As you can see, there are many simple ways to cut expenses by lowering your energy use. If you’re interested in learning more about the best steps to reduce costs in any aspect of your financial life, consult your CPA. He or she can provide money-savvy ideas that you can apply to your every day life.
The Virginia Society of Certified Public Accountants (VSCPA) is the leading professional association dedicated to enhancing the success of CPAs. Founded in 1909, the VSCPA has approximately 8,300 members who work in public accounting, industry, government and education. For more information, please visit the Press Room on the VSCPA Web site at www.vscpa.com, e-mail vscpa@vscpa.com call (800) 733-8272. For more information on financial literacy topics like money management, or to search for a CPA in your geographic region, visit www.FinancialFitness.org.
Smart Tips for Managing Your Debt | Top
Debt is not always a bad thing. Taking out a loan can make it possible to buy a home, purchase a new car or send your child to college. However, building up too much debt — and failing to manage your outstanding balances wisely — can be costly mistakes, according to the Virginia Society of CPAs. Many American families have allowed their debt to get out of control, but there are smart steps you can take to remedy the problem.
Consider consolidation
People often accumulate various debts over the years and end up paying off many small loans that all carry different interest rates. Consolidating all of these debts into one loan may be a better choice. When you consolidate, you take out one large loan and use it to pay off the smaller ones. While this can be a great convenience, remember that you should only take out a consolidation loan if you can find an attractive, low interest rate, which will allow you to pay less in finance charges and which will translate into a lower monthly payment.
If you want to consolidate your debt, your choices include taking a bank loan or transferring your outstanding balances to a credit card with a low interest rate. You can also take out a home equity loan, which usually features a low rate as well as tax advantages, because you can deduct the interest on a qualifying home equity loan up to $100,000. No matter your choice, be sure that you use the consolidation loan for its intended purpose rather than spending the money on new purchases. And if you consolidate using a home equity loan, remember that you could potentially lose your home if you fail to pay it off. Consider carefully whether you will be able to make your payments before risking your home ownership.
Choose the best credit card
If you are carrying consumer debt on a credit card, make sure that you are paying the lowest rate possible on the outstanding balance. Low interest payments will be particularly important if you plan to carry a balance, transfer debt from another card or get a cash advance, because that interest will add up over time until you pay off your balance. Find out, too, about other charges such as annual fees or penalties for late payments. If you’re interested in getting rewards or rebates, check to see whether the card provides them, when they apply and when they expire. To evaluate your choices, create a chart with the name of each card issuer across the top and details — interest rates, fees, penalties — listed vertically down the page. The chart will help you narrow your options and pick the best card for you.
Make a new plan
Debt consolidation and lowering your interest rates are great steps, but it’s important, too, to ensure that you don’t slide into debt again. Take time to analyze your current situation and consider whether you need to change your spending habits to avoid taking on more debt in the future. Creating an emergency fund can help to safeguard your finances when illness or loss of a job strikes. If day-to-day overspending is the culprit, take time to create a budget and then make sure your purchases do not exceed the amount you budgeted.
Consult an expert
Your local CPA can help you assess consolidation loans or compare your borrowing options. He or she can also provide advice on how to create a budget so that you can live within your income. Contact your CPA today for advice on questions about managing your debt or any other financial issues.
The Virginia Society of Certified Public Accountants (VSCPA) is the leading professional association dedicated to enhancing the success of CPAs. Founded in 1909, the VSCPA has approximately 8,300 members who work in public accounting, industry, government and education. For more information, please visit the Press Room on the VSCPA Web site at www.vscpa.com, e-mail vscpa@vscpa.com or call (800) 733-8272. For more information on financial literacy topics like money management, or to search for a CPA in your geographic region, visit www.FinancialFitness.org.
Protecting Your Child Against Identity Theft | Top
Is someone using your child’s Social Security number or other personal information to commit fraud? Unfortunately, the number of cases of identity theft committed against children is on the rise, according to the Federal Trade Commission. And parents may be completely unaware until the child is one day denied a driver’s license or a college tuition loan because of the bad record that an identity thief has built in the child’s name. The Virginia Society of CPAs offers a series of steps you can take to prevent your child from becoming a victim.
Wise precautions essential
Identity theft occurs when a criminal uses someone else’s personal information to commit fraud, such as running up credit card bills in another person’s name or using their identity to get a driver’s license or other false credentials. Adults have been the victims of identity theft for years, but scammers have found that a child’s personal information is just as useful in committing fraud. That’s why it’s important to take the same precautions to protect your child’s personal information that you take for your own data. For example, don’t reveal your child’s Social Security number or other personal data without good reason. When someone requests this information, ask why it is needed and what steps will be taken to protect your child’s privacy. Make sure the information is kept confidential and in a secure location.
Trust your instincts
One warning sign that your child’s identity has been stolen appears when he or she begins to receive solicitations in the mail to open credit card accounts. These offers are usually only sent to people who have established credit records. If your child does not have any outstanding debt, then you should question why credit card issuers would have his or her name. It may be a sign that someone else is running up debt using your child’s identity.
Get the facts
To get more information, check with the three major credit bureaus to see if your child has a credit report. The Web site of the Identity Theft Resource Center offers a fact sheet for ordering a credit report for your child. You can find it by visiting www.idtheftcenter.org. However, the Center does advise that parents should not request these reports unless they have a reason to suspect that someone is using their child’s identity. Submitting a request will open a report for your child if he or she does not have one, and that will make it easier for a potential thief to use your child’s identity in the future.
Protect your information
As a general rule, you should reduce the chances that thieves can obtain personal information for anyone in your family. Keep important documents — such as birth certificates and Social Security cards — in a secure location. Don’t carry your child’s Social Security card in your wallet in case it is stolen.
College students at risk
Young children have been the victims of identity theft, but college students are especially vulnerable because they live in close quarters with other students and may not be especially alert to protecting their privacy. They should take care to secure their credit cards or other information and to keep their wallet and important documents in a safe place. If the college uses students’ Social Security number as their ID number, ask to change it to another number.
Your CPA can offer advice on how to prevent your family from becoming the victims of fraud. Consult him or her on any important financial issues.
The Virginia Society of Certified Public Accountants (VSCPA) is the leading professional association dedicated to enhancing the success of CPAs. Founded in 1909, the VSCPA has approximately 8,300 members who work in public accounting, industry, government and education. For more information, please visit the Press Room on the VSCPA Web site at www.vscpa.com, e-mail vscpa@vscpa.com or call (800) 733-8272. For more information on financial literacy topics like money management, or to search for a CPA in your geographic region, visit www.FinancialFitness.org.
© 2008 American Institute of Certified Public Accountants
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