HOW TO PROTECT YOUR DEBIT CARD FROM “SKIMMING” SCAMS

As economic conditions have worsened, there’s a noticeable increase in all types of card fraud. People who create counterfeit ATM or debit cards by stealing your PIN and other account data can simply pull cold cash from your bank account. Using a technique known as skimming, they set up equipment that captures magnetic stripe and keypad information when you put in your PIN at ATM machines, gas pumps, restaurants, and retailers.

The editors of Consumer Reports Money Adviser offer three tips on how you can protect yourself: 

• Don’t type in your PIN at the pump. Gas pumps are notorious for skimming because they’re produced by only a couple of different manufacturers, and if someone gets the key to one from a disgruntled employee, he can insert a skimming device inside the pump where it can’t be seen. Use a credit card when you fill your tank. If you must use a debit card, choose the screen prompt that identifies it as a credit card so you don’t have to type in your PIN. 

• Stick with ATMs located at banks. Use machines at banks rather than in convenience stores, airports, or any isolated locations. A thief has to be able to attach and retrieve a skimming device to see the data gathered, and that’s more likely to happen in non-bank settings where there’s less traffic and no surveillance cameras. 

• Closely monitor your bank accounts.  Check them regularly—preferably online. Federal law limits your liability for fraudulent debit-card charges to $50, but only if you report the theft or loss of your card or PIN within two business days of discovering the problem.

WAYS TO CUT YOUR WEEKLY GROCERY TAB
Clip, buy smart, and keep an eye on the scanner to save hundreds of dollars

Even with lower fuel prices, the cost of food will probably continue to rise in 2009, led by increases for meat and poultry. To help lower your tab at the checkout, CRMA’s experts have compiled tips for saving on food shopping while avoiding money wasting traps.

Before you go

Plan a route- Make a list and take a look at your local market’s newspaper ads to see what’s on sale. Or check out store Web sites. Plan to hit a few stores so you can take advantage of the best sales. Those within a five-mile radius of each other will be especially competitive in their pricing. 

Get coupons and store-loyalty cards. People who use them save more than 10 percent a year on groceries, or about $678, according to a poll conducted by the Consumer Reports National Research Center. Hunt for coupons on your computer. CRMA experts found discounts on everything from frozen items to pet food on coupon sites such as www.coolsavings.com and www.smartsource.com.

At the store

Evaluate circular savings. Don’t assume that advertised prices are bargains. Some manufacturers pay to have their products featured in circulars.

Avoid common spending traps. The most expensive products are usually displayed at eye level, so check out items above your head and below your knees. Products displayed at the ends of aisles, known in supermarket lingo as endcaps, aren’t necessarily on sale, but they can tempt you to make impulse purchases.

Stock up on sale items. Some staples last longer than you think. Butter can be stored for four months in your freezer. Acidic canned goods like tomatoes are good for 18 months and juice in unopened bottles is good for 12 to 18 months.

Look at unit prices. Big packages are often more economical, but not always. One study found that canned tuna, coffee, peanut butter, ketchup and frozen orange juice often turn out to be costlier in larger containers. Make sure you compare unit prices (per ounce, etc.) before you buy.

Watch the scanner. A recent Consumer Reports poll found that one in five shoppers who said they watched the supermarket scanner found errors.

FIVE WAYS TO STAY AFLOAT IF YOU LOSE YOUR JOB

If you’ve joined the ranks of the unemployed, or are afraid you might soon, CRMA offers the following advice:

Collect your severance. Your total severance might be anywhere from the equivalent of two weeks’ to six months’ pay or possibly more. Companies typically let you choose to receive your severance in a lump sum or series of payments. If you think your company is still financially sound, consider taking the payments, which will allow you to keep getting a paycheck for as long as the severance lasts. If your employer is on shaky ground, a lump sum is a safer bet. But be prepared for a significant tax hit.

File for unemployment. If you’ve lost your job, don’t wait to call your state’s unemployment office to apply for benefits. Most states begin the benefit period from the day you file your claim, not the day you were let go.

Obtain health coverage. If you’re married and your spouse’s employer offers health insurance, you may be eligible to join his or her plan. If that isn’t an option, you may be eligible for coverage under COBRA, which allows terminated employees to temporarily continue insurance under their former employer’s health plan. If you’re approaching 65, plan to apply for Medicare coverage about three months before that birthday.

Decide if you need life insurance. Your employer might allow you to continue the company’s group life insurance if you pay your own premiums. But life insurance might not be worth the expense if you have no dependents or your children are grown-up and self-sufficient. If you have dependents to support, you may be able to find less-expensive term plans on your own. Go to www.findmyinsurance.com  and www.lifeinsure.com for quotes.

Preserve your retirement plan. Some employers will allow former employees to leave their 401(k) funds in the plan as long as they have more than $5,000 invested. Check with your human resources department to see if you’ll be charged additional fees for the privilege. If you have to move your money, you can roll it into an individual retirement account, or if you land a new job, transfer the assets directly to your new employer’s 401(k) plan. Unless you absolutely need the money, don’t cash out of your plan. If you do, you’ll have to pay income taxes on that money, and the IRS might also impose a 10 percent early-withdrawal penalty.

Consumer Reports Money Adviser is a monthly newsletter that answers tough money questions and provides expert financial advice. Its proven information and successful strategies make any financial decision an easy one. Each month, CRMA provides feature articles and helpful investment, savings, and spending advice that will prepare consumers for anything life may bring them.