Other Important Banking News
- There is a new threat in the Account Takeover space. The Ramnit Worm has resurfaced and is reportedly targeting Facebook users.
What does this mean to Financial Institutions? The Ramnit worm is now targeting Facebook users. This is particularly concerning to the financial community due to the potentially large number of consumer level accounts that could be compromised. Many individuals use the same passwords to access personal email and Facebook accounts as well as for remote access to corporate networks and online banking accounts. Researchers believe the cybercriminals unleashing Ramnit are targeting Facebook for multiple reasons. A large number of potential victims exist in Facebook, approximately 800 million potential victims worldwide. Additionally, if an individual uses the same password for multiple applications, gaining his/her Facebook credentials may open the door to online banking accounts, remote access to corporate networks, etc.
What should you do? Do not use the same credentials for social-based services and their financial accounts. The same passwords or security challenge questions should never be used for social media, email and online banking access.
What is Ramnit? Ramnit is a worm that can spread to other computers and reproduce itself without being sent through email or a website. Since 2010, Ramnit has altered to include a Zeus variation which targets online banking credentials, particularly those of consumers. This new version has successfully bypassed two-factor authentication, infecting an estimated 800,000 computers since September 2011.
- The Bureau of the Public Debt announced that as of January 1, 2012, paper savings bonds will no longer be sold at financial institutions. This action, which supports the U.S. Department of the Treasury's goal to increase the number of electronic transactions with citizens and businesses, will save American taxpayers approximately $70 million over the first five years. But savings bonds, introduced in 1935, are not going away. Electronic savings bonds in Series EE and I will remain available through purchase in TreasuryDirect®, a secure, web-based system operated by Public Debt - where investors have been purchasing savings bonds, available 24/7, since 2002.
"Savings bonds are very much a part of this country's history and culture, and will remain a part of America's future - but in electronic form," said Public Debt Commissioner Van Zeck. "It's time for us to take a 1935 model and make it a 21st century investment tool."
Ending over-the-counter (OTC) sales of paper savings bonds at financial institutions is a continuation of Treasury's all-electronic initiative announced in April 2010. As part of the initiative, Treasury stopped the sale of paper bonds through traditional payroll plans, effective December 31, 2010. It is estimated that ending the sales of paper payroll and new issues of OTC bonds will save a total of $120 million over the next five years in areas such as printing, mailing, storing bond stock and fees paid to financial institutions for processing bond applications.
"Through TreasuryDirect, investors have an easy and convenient way to purchase and manage their bonds free of charge," Commissioner Zeck said. "Investors will no longer have to worry about misplacing, losing or storing paper savings bonds."
Opening a TreasuryDirect account is free, and, once it's established, investors can: 1) Buy, manage, and redeem Series EE and I electronic savings bonds. 2) Convert Series EE and I paper savings bonds to electronic through the SmartExchange® feature. 3) Purchase electronic savings bonds as a gift. 4) Enroll in a payroll savings plan for purchasing electronic bonds. 5) Invest in other Treasury securities such as bills, notes, bonds, and TIPS (Treasury Inflation-Protected Securities).
Those currently holding paper savings bonds can continue to redeem them at financial institutions. Bonds, which have not matured, but were lost, stolen or destroyed, can be reissued in paper or electronic form. Series I paper savings bonds remain available for purchase using part or all of one's tax refund. For more information on this feature, visit the IRS web site. For more information about the elimination of paper savings bonds and how to enroll, please visit the TreasuryDirect web site. - Important Disclosure Regarding Deposit Insurance on Noninterest-bearing Transaction Accounts:
Notice of Changes in Temporary FDIC Insurance Coverage for Transaction Accounts: All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.
The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts (“IOLTAs.”) It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts and money-market deposit accounts.
For more information about temporary FDIC insurance coverage of transaction accounts, visit the FDIC web site.
- Fraudulent Emails Claiming to be The Federal Reserve:
EPCOR (Electronic Payments Core of Knowledge) has received reports that individuals and/or companies across the country are receiving fraudulent emails that have the appearance of being sent from the Federal Reserve. Specifically, the email claims to be from the Federal Reserve Wire Network and appears to be sent from fedwire@federalreserve. The Subject of the email is “Your Wire Fund Transfer.” The Body of the message is “The wire transaction, recently sent from your checking account (by you or any other person), was cancelled by the Federal Reserve Wire Network. Please click here to view details.”
This is a fraudulent email. It was not sent by the Federal Reserve. Do NOT click on any of the links. Be aware that phishing emails frequently have attachments and/or links to Web pages that host malicious code and software. Do not open attachments or follow Web links in unsolicited emails from unknown parties or from parties with whom you do not normally communicate, or that appear to be known but are suspicious or otherwise unusual.
- What is an IRA?
An Individual Retirement Account, or IRA, is an account into which you can save and invest money for retirement (provided you’re eligible), with potential tax benefits. The two basic types are the Traditional IRA and the Roth IRA. Each has slightly different rules and benefits. You can contribute to it every year as long as you have earned income. Both types can be opened through the Bath State Bank. It requires no more than a few minutes visit. You can open an IRA at the Bank for as little as $50. The maximum contribution for the 2010 year is $5,000 for those under 50, and $6,000 for those 50 and above. Call or simply stop in either BSB location.
Common types of IRAs are accounts that you open on your own. Others can be opened by self-employed individuals and small business owners. There are several different types of IRAs. Unfortunately, not everyone gets to take advantage of them. Each has eligibility restrictions based on income or employment status, and all have caps on how much you can contribute each year and penalties if you yank out your money before the designated retirement age. Just call or stop by . . . we'll help you with your questions.
- Fraudulent Email Claiming to be FDIC - The Federal Deposit Insurance Corporation (FDIC) has received numerous reports from consumers who received an email that has the appearance of being sent from the FDIC. The email informs the recipient that "in cooperation with the Department of Homeland Security, federal, state and local governments…" the FDIC has withdrawn deposit insurance from the recipient's account "due to account activity that violates the Patriot Act." It further states deposit insurance will remain suspended until identity and account information can be verified using a system called "IDVerify." If consumers go to the link provided in the email, it is suspected they will be asked for personal or confidential information, or malicious software may be loaded onto the recipient's computer.
This email is fraudulent. It was not sent by the FDIC. It is an attempt to obtain personal information from consumers. Financial institutions and consumers should NOT access the link provided within the body of the email and should NOT under any circumstances provide any personal information through this media. The FDIC is attempting to identify the source of the emails and disrupt the transmission. Until this is achieved, consumers are asked to report any similar attempts to obtain this information to the FDIC by sending information to alert@fdic.gov.
- Federal Tax Payment News - Starting in 2011, federal tax payments will no longer be paid with a coupon. There are two alternate methods of making your federal tax payments: online or by phone, 24/7. You must first enroll in the Electronic Federal Tax Payment System (EFTPS.) Stop by the Bank (either location) for your enrollment form. You can also visit the EFTPS web site for enrollment. Please make sure you are enrolled well enough in advance of when your tax payment is due. (You will need a Personal ID Number (PIN) from the U.S. Department of Treasury to activate your enrollment and it takes about seven days to receive a PIN when you enroll online.) We can no longer accept the coupons. Please see the EFTPS Fact Sheet & Phone Sheet for details on how to set up your enrollment. If you have any questions, please call us at 765-732-3022.
- Consumer Warnings - Fake Check Scams: Fake check scams have become more prevalent as online auction sites and classified ads have gained popularity. Bath State Bank wants to educate customers by exposing the scam and offering tips to avoid becoming a victim.
There are many variations of the fake check scam, but the common thread is a stranger proposing to send the victim a check and have the victim wire money in return. The stranger may be someone offering to buy something you advertised for sale, pay you to work at home, or give you an advance on a sweepstakes you won. The stranger may also be someone posing to be a relative or friend. Regardless of how the contact is initiated, the bottom line is this: if someone you don’t know wants to pay you by check but wants you to wire money back, it’s a scam. As well, if it is someone you know, call him/her back to verify the conversation in case it is an imposter.
Today’s technology enables fraudsters to create fake checks that look so real it is often difficult for experts to determine they are fake with the naked eye. Since federal law mandates that banks must make deposited funds available quickly, a customer may be able to withdraw money on a fake check, even if it is a cashier’s check or money order which can be forged as well.To avoid becoming a victim, Bath State Bank says customers should remember:
1) There is no legitimate reason for someone who is giving you money to ask you to wire money back;
2) If you are uncertain a check is good, wait until the check has “cleared” to spend the money;
3) If a stranger wants to pay you for something, insist on a cashier’s check for the exact amount, preferably from a local bank or one with a branch in your area.
- ATM & Debit Card Overdraft Privilege: A new regulation requires us to make some changes to services on your account. Effective August 15, 2010, the everyday purchases you make with your debit card and your ATM transactions will no longer be covered by our Bounce ProtectionSM service. If you do not have enough money in your account or the funds are not yet available, your card will be denied. Please link on the following section regarding this important announcement.
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Automatic Transfers: You can set up regular, automatic transfers to savings accounts and loans! You choose the frequency: monthly, semimonthly or weekly. Don't worry about writing a check for your mortgage payment when you have it automatically transferred from your BSB checking to your BSB loan each month.
- Ready to Retire?
If you’re finally ready to retire, you might want to think about moving your assets from your 401k or other employer-sponsored retirement plan into an IRA. This is usually called a Direct Rollover.
When you move these funds from your retirement account directly into an IRA, it is a nontaxable transaction. You also avoid the 20 percent tax withholding that is required on cash withdrawals. For more information, please contact Michelle or Laura or ask anyone at either of our locations.
- Special Alert!: Please do not open emails that appear to be from the Bank regarding your bank account. We will never send you information through email. We send information through postal mail to notify you. Tri-county area banks have reported “phishing” schemes containing actual bank logos and similar email addresses. Please keep your Social Security and ALL account numbers private. Do not provide your username and/or password to anyone, not even if you think you’re corresponding with our Bank. Thieves do a good job of replicating any company’s logo, etc., in order to commit fraud. Don’t take the bait.