MyCRA Specialist Credit Repair Lawyers

Tag: www.fixmybadcredit.com.au

  • Have Bad Credit? A bad credit loan is not your only option.

    bad creditFor someone who is locked out of mainstream credit because of their credit rating, their finance options become limited. But there are options, and in Australia, it may not always be entering into a “bad credit” loan. There are alternatives, depending on whether the credit file holder has grounds to dispute the bad credit tarnishing their credit file. We examine the ins and outs of bad credit loans in Australia, and the instances where it may be both fairer and cheaper to examine compliance with a credit repairer instead.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    A bad credit report is a deal breaker with most mainstream Credit Providers. Bad credit can include defaults, writs, Judgments, Bankruptcies and even excess credit enquiries. From March 2014 it will also include payments more than 5 days late to licenced Credit Providers (loans, credit cards etc).

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    Graham Doessel
    Graham Doessel
    Founder & CEO
    MyCRA Credit Repairs &
    www.ADSLAW.com.au

    Bad credit impacts most people for between 5 and 7 years – and 2 years for repayment history. Most mainstream Credit Providers will refuse credit – particularly in the current economic climate. Often people can’t even get a mobile phone plan.

    Despite this, many alternative loans are available out there for people who are on the outer due to bad credit defaults and other credit listings. But these bad credit (non-conforming) loans generally come at a much higher interest rate, which can cost people tens of thousands more in interest just over the first three years of the loan.  This is in order to cover the risks associated with taking on someone with bad credit. For example, on a loan of say $300,000, the difference in 2% from the standard variable rate of say 7% to a bad credit loan rate of say 9% could mean a family is paying as much as $15,046.57 more over those first three years just in interest.

    Prior to branching out into credit repair, I ran a successful non-conforming brokerage helping people who were refused mainstream credit. But with many people – when I heard about the circumstances around their bad credit – I often felt they had been dealt an unfair blow – forced to pay thousands more in interest when the bad credit possibly shouldn’t have been there in the first place.

    This is why, the first port of call when someone is faced with bad credit, should be to determine the accuracy of the credit listing.

    Savingsguide.com.au published a great article on bad credit loans in Australia, titled A Guide To Loans For People With Bad Credit.

    It features some pertinent advice about choosing a loan after being refused credit with a mainstream lender. It goes through the steps you may need to take to secure finance in Australia, and includes some final tips for securing a loan. The central tip is, prior to committing to a loan attempt to fix your bad credit issues first.

    “Loans for people with bad credit should really be a last resort, as opposed to the only option. See what you can do to repair your credit rating beforehand and hopefully begin looking for loans just as anyone else would,” Savingsguide.com.au’s Alex Wilson says.

    Australians should not put up with bad credit if it shouldn’t be there. Any credit listings which the individuals believe are inconsistent, unfair, or incorrect should be disputed.  Credit rating errors could be anything from the credit listing placed by the Credit Provider on the wrong credit file; to the basis of the credit listing being unfounded; to incorrect notices being provided; right through to system errors and incorrect spelling, to name a few examples.

    Creditors are bound by a large volume of legislation and codes of conduct to do with placing information on consumer credit files. These laws are in place to protect consumers from unfair and damaging credit reporting.

    Credit repair is a lengthy process, involving the review of all documentation from an individual – including the credit file and all the circumstances surrounding the default, writ or Judgment.

    The credit repairer will conduct an audit-like investigation of the circumstances surrounding the credit listing, noting any compliance issues which would deem the credit listing unlawful and require its removal from the credit file. If the credit listing has been placed unlawfully, then it should be removed.

    When an inconsistent credit listing is removed, it generally means the consumer is able to apply for mainstream credit – provided bad credit was the only item preventing finance approval.

    If you would like an assessment for your suitability for credit repair, talk to a consultant at MyCRA Credit Rating Repair on 1300 667 218 – they can assess how you might fare in removing bad credit before you commit to any bad credit loan in Australia. Do bear in mind – there are some credit listings which MyCRA cannot remove from your credit file, including Bankruptcies.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

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  • Phishing email alert

    phishing emailStay Smart Online recently issued an alert about a number of new phishing emails carrying malware which have been identified in the recent days. The emails pretend to come from a number of Australian institutions including the Australian Tax Office (ATO), the Commonwealth Bank, National Australia Bank (NAB) and Telstra. Others have also been identified mimicking MMS messages. We look at the details of these phishing emails, and the dangers malware can pose for your identity and your credit file.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    It seems these phishing emails are more prolific than ever, and can be an easy trap to fall for with the untrained eye. For example, last week MyCRA received some emails via our published email addresses, purporting to be from credit reporting agency Dun & Bradstreet. The email contained a zip file which if opened, I’m sure would have contained malware. The email looked very convincing at first glance, and was relevant to our profession both with the source and content of the email. It was only after reading thoroughly through the email we identified it was from an international DnB – and we understood it to be a scam. DnB UK had issued an official warning to its customers and clients about this scam. But how many people would fall for it?

    These fraudsters must have programs to troll through websites, identify frequently used words, and allocate appropriate phishing emails accordingly. How advanced – and how dangerous this process is.

    Stay Smart Online has provided examples of the current ATO phishing messages which appear to be sent from payroll provider ADP, and may include malware attached as a .zip file (currently ATO_TAX_16072013.zip). The banking examples have included malware attached as SecureMessage.zip. An example of the ATO phishing email is below:

     

    ———- Forwarded message ———- Date: Mon, 15 Jul 2013 15:35:42 -0800 From: payroll.invoices @adp com Subject: Australian Taxation Office – Refund Notification

    Australian Taxation Office 16/07/2013

    TAX REFUND NOTIFICATION

    After the last calculation of your fiscal activity we have determined that you are eligible to receive a refund of 6731.76 AUD.

    For more details please follow the steps bellow :

    – Right-click the link on the attachment name, and select Save Link As, Save Target As or a similar option provided. – Select the location into which you want to download the file and choose Save. – Open the file Microsoft Word file to view the details.

    Sonny Stout, Tax Refund Department Australian Taxation Office

    If you receive this email, simply delete it. Do not respond or open the attachment.

    SSO says many security products are not identifying the attachment correctly as malware, meaning that if you open the attachment, a Trojan will attempt to install on your computer.  But the say detection rates are improving quickly as more security vendors add this malware definition to their products; in the meantime, your computer may be vulnerable. Another reason to include automatic updates of your anti-virus product.

    Avoid phishing emails

    Always be suspicious of unsolicited emails.

    Do not click links or open attachments unless you are confident about the sender and information the email contains. The best advice is to simply delete the email.

    If you are uncertain about the origin of any email you can always cross check the information by going independently to the company or source’s website or by calling them directly.   More information   Read Stay Smart Online’s advice about avoiding phishing and advice about spam.

    Information provided by Telstra’s Chief Security Specialist, Scott McIntyre.

    The ins and outs of phishing scams

    Phishing scams are generally emails or text messages which impersonate genuine companies in the hope of tricking victims into giving out their personal and financial information.

    The aim of phishing is to steal information like bank and credit account numbers, passwords, and other crucial data. The ACCC’s Scamwatch website warns that phishing emails are not easily distinguishable from genuine corporate communication:

    “Phishing emails often look genuine and use what look to be genuine internet addresses—in fact, they often copy an institution’s logo and message format, which is very easy to do. It is also common for phishing messages to contain links to websites that are convincing fakes of real companies’ home pages.

    The website that the scammer’s email links to will have an address (URL) that is similar to but not the same as a real bank’s or financial institution’s site. For example, if the genuine site is at ‘www.realbank.com.au’, the scammer may use an address like ‘www.realbank.com.au.log107.biz’ or ‘www.phoneybank.com/realbank.com.au/login’.”

    The ramifications of falling for a phishing scam

    Clicking on links in phishing scams can mean just the simple act of clicking on the link can put you in danger. Many phishing emails are designed to infect computers through virus-containing links in the emails. This could mean that you could download a Trojan or similar virus designed to steal your financial information – and you may have no idea its happening.

    This could be dangerous for your credit file. Because while you are carrying out your normal online transactions, the Malware that you have installed could be tracking passwords, financial details and personal details about you. This could be used by a clever and determined cyber-crook in order to build a fake identity in your name.

    Suddenly credit could be accessed in your name, and you probably won’t know about it until you apply for credit yourself and are refused. This presents real problems for fixing your credit rating, because what we know about removing unfair or inaccurate listings from your credit file is that you must provide evidence and proof that you didn’t initiate the credit. This can be difficult to do when you have no idea how the theft of your information occurred. It can be a nightmare for victims.

    So don’t get hooked by a phishing scam. If you receive an email that looks legitimate – go independently to the Bank or other company’s website to verify it. Or use the official Bank phone number (not the phone number presented on the email) to call the bank directly to verify the email is legitimate.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • Payday lending: why it’s all about to change

    payday loansThe number of payday lenders is about to shrink due to new regulations, according to  Paid International (formerly First Stop Money). Is this a good thing for those people on the fringe? We look at what the changes are, how they will impact borrowers and those people who don’t have access to mainstream credit due to bad credit.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    Last year the Australian Government decided to start restricting interest charges to payday lenders through the Consumer Credit Legislation Amendment (Enhancements) Bill 2012 which changed the playing field for payday loans, as well as rules around financial hardship. The Government wanted to “stop loan sharks from exploiting vulnerable Australians,” Financial Services Minister Bill Shorten said in a statement to the media following the Bill’s passing in Parliament.

    “The Gillard Government has moved to reduce the financial harm caused by lenders who ruthlessly impose excessive fees and charges simply because vulnerable consumers cannot obtain alternative access to credit,” he added.

    The Enhancements Bill introduced a cap for small amount credit contracts where the amount borrowed is $2000 or less, and the term is 1 year or less. For these loans the maximum any lender can charge is an establishment fee of 20 per cent of the amount of credit upfront and 4 per cent for each month of the loan. This provides for maximum charges of $72 on a loan of $300 over 1 month.

    As Banking Day reported last week in its story ‘Payday loan market in transition‘, the introduction of interest rate caps is the second piece of major regulation directed at the payday lending industry this year. The other change will be in the area of credit assessment – intending to ensure potential borrowers aren’t over-obligated.

    Providers of small-amount credit contracts must review clients’ bank statements for the previous 90 days to verify their income. Loans with terms of less than 16 days are prohibited, unless it is an authorised deposit-taking institution offering a continuing credit contract.

    A loan will be presumed to be unsuitable if the applicant is in default under another small-amount credit contract or has been a debtor under two or more small-amount credit contracts within the previous 90 days.

    If a borrower receives 50 per cent or more of their gross income from Centrelink, no more than 20 per cent of their income can be allocated to loan repayments.

    The changes to payday lending taking place now are predicted to force the industry to “change dramatically over the next few years”.

    The chief executive of Paid International, Tim Dean predicts that payday lending will as an industry, consolidate.

    “Only a small number of very efficient operations will find the new rules workable,” he told Banking Day.

    Paid International has recently changed its name from First Stop Money, which was reportedly part of a re-positioning of the business.

    Dean said that over the next few months Paid International would launch a suite of new products aimed at “middle Australia”.

    “Our customers are not Centrelink clients,” he said.

    In an emergency situation, people who are stuck with bad credit often turn to payday loans. Including those people that aren’t able to obtain a hardship variation for their circumstances, and have a default or other negative listing (or even too many late payment notations as of next year) placed on their credit file.

    Capping the interest rate on pay day loans is a fair move, and restriction on access for those over-committed Australians is also probably a good idea. But I see the bigger picture. Some people who are forced into these situations are there because the system has failed them. Not all defaults deserve to be there, but they all have the same outcome for prospective borrowers. They are banned from obtaining mainstream credit.

    Where people are getting let down is in copping the mistake in the first place, and also in the correction of the credit reporting mistake. Whilst the powers that be say that there is a legitimate avenue for correcting credit reporting mistakes for the individual, any consumer who has had the pleasure of dealing with a big company for even small issues will attest to the difficulty in getting a straight answer, getting someone who knows what they’re talking about first time, and ultimately correcting the mistake. This is a common complaint of many of our credit repair clients. Most people are told if it’s paid up they can mark it as such but that’s about it.

    So whilst I applaud the new laws, they can’t be looked at exclusively. Whether we’ll have a fairer credit system for all Australians remains to be seen following the implementation of amendments to the Privacy Act in March. Whether Australians will get a ‘fair go’ or find themselves in new hot water – is what we’ll be looking at closely over the next couple of years.

    If you have been refused mainstream credit and need help with disputing a credit listing you believe is unjust, unfair or just shouldn’t be there, contact a Credit Repair Advisor on 1300 667 218.

  • Your Credit Rating – How to Get a Free Credit Check and What to Do if Your Credit Report Comes Back with Defaults

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    check credit fileWe recently read a comprehensive article on getting a free copy of your credit report written by Alex Wilson over at online savings website – www.Savingsguide.com.au.

    From the long list of comments on this issue, we can see just how many people in Australia still remain in the dark about how to even simply get a copy of their credit rating, let alone dispute any bad credit which they believe should not be there. We take you through some important points from this article and look in more depth at what you should do if you have something like a default or Judgment or other credit listings on your credit report that you feel is incorrect, inaccurate or unfair.

     

    By Graham Doessel, Founder and CEO of MyCRA Lawyers and www.fixmybadcredit.com.au.

    In the article How To Do A Credit Check – Check Your Credit Rating & Credit Report For FREE – you will learn how to perform a credit check to obtain a copy of your credit report. The importance of checking your credit rating – particularly prior to applying for a home loan, or other significant credit – cannot be overstated.

    In this day and age, everything works on credit so you need to have a clear credit rating to be able to function well in society. If you cop a default on your credit file – you will be refused credit with mainstream lenders (at affordable interest rates). If you do get a loan, often the interest rate is much higher. You may also find you can’t get credit cards or mobile phones on a plan. But there are many people who don’t know they have a default on their credit file until they apply for credit and the bank does a credit check on them. To be one step ahead, it is better to check your credit file first – and give yourself a chance to dispute any bad credit history and have incorrect listings removed prior to applying for credit.

    “I was worried about my credit report

    If you are anything like me, you have probably missed a few phone bills, perhaps missed a mortgage repayment by accident or even worse – gone overseas and been missing in action for a few months with banks frantically trying to get in touch with you.

    It made me wonder whether these oversights would affect my credit history and in turn my ability to borrow money come time for a home loan,” Alex writes in the article.

    On a side note, oversights like forgetting a credit card bill, a mortgage repayment or any type of payment to a licenced Creditor will see a late payment notation added to your credit file now – and that will be visible from March 2014.

    Just what impact this will have on your ability to obtain credit is still up in the air – but having too many late payments, or even just one, could mean you are refused credit, or offered credit at a higher interest rate in the future.

    How to Check Your Credit Rating For Free

    You can contact us at any stage to do the work for you to obtain a free copy of your credit file  or alternatively, here is a run-down of how Alex checked his credit rating for free:

    The first credit rating provider I am going to use is called ‘My Credit File’ – they are part of Veda Advantage, one of Australia’s largest credit reporting agencies.

    Like many credit rating providers, they offer both a paid and free service. I am of course opting for the free service. All this means is I have to wait a little longer for it to arrive I am told. Not a huge deal.

    How to do a free credit check with Veda/MyCreditFile [Now Equifax]

    1.)  I went to www.mycreditfile.com.au 2.)  I then went to the ‘personal’ tab 3.)  Scrolled down to find the button stating ‘Free – Find out more’ 4.)  Loaded the page called ‘Free Credit File’ which tells you all the details you need to fill out 5.)  I then downloaded this form to request a free copy of my credit report 6.)  I attached a scanned copy of my drivers license (or passport) and also a copy of my utility bill proving my name and residential address. 7.)  Done

    I have to say, it was all rather easy. I now just have to wait 10 working days for my credit report to arrive.

    Why do they offer a paid version of your credit rating report?

    If you are wondering what the difference is with the paid version from MyCreditFile – please note that the only difference is that you pay $99.95 and it in turn comes to you via post, email or fax within 1 working day. E.g. you save 9 days. Still the same report.

    Dun and Bradstreet credit rating reportCredit Report

    Like Veda[Equifax], Dun and Bradstreet are one of the big players in credit ratings. They are used by many companies as the source of reporting on credit.

    They by law have to offer you a free credit report and free copy of your credit history as discussed earlier. Here is how to get it.

    How to get a copy of your credit report from DNB 1.)  Go to https://www.dnbcreditreport.com.au/ 2.)  Look to click on ‘standard credit report’ or similar – e.g. not fast tracked. 3.)  On the standard request page you then fill out the online form (takes around 3minutes) 4.)  Attach copies of your identification 5.)  Submit/mail it 6.)  You’re done.

    Much easier than the MyCreditFile.com.au website – it’s as if the previous site was trying to hide the free report (well they certainly made it hard to find).

    A bit about the Credit Score

    If the bank does a credit check on you, they will obtain your credit score. But you are not privy to this number if you order a copy of your credit report – paid or otherwise.

    People often ask ‘what is a good credit score?’ – however these credit scoring metrics are often kept confidential with the lenders and credit reporting agencies.

    They are a metric that lets them give you an assigned score based on how much debt you currently have, how many credit applications you have filled out recently and more. It is more for the lenders to use to easily categorise people, so it isn’t often you get to find out your exact credit score – which in turn can make it hard to improve your credit score.

    In my opinion, everyone should have access to their credit score, and the method used to calculate it.

    How do I fix my bad credit?

    If you have bad credit – you have two options….

    1. You can attempt to remove the default or other credit listing yourself, and there are processes to do this – OR

    2. You can use a professional credit repair service.

    The benefit in fixing your own bad credit is that it’s cheap. You may have very little costs associated with disputing your own credit listing. But similarly to defending yourself in Court – the cheap option may not be the best one for you.

    Credit rating errors are quite common, and the onus of ensuring the accuracy of your credit file rests with you. But how do you know if a listing has been placed accurately on your credit file, or if it should be there in the first place?

    There are strict codes of conduct and legislation which must be adhered to when your Credit Provider is placing a default or other credit listing on your credit file. These laws are in place to protect consumers from unfair and damaging credit reporting. Creditors are largely aware of this legislation (yet may not have adhered to it), but there are very few consumers who are well-versed in credit reporting and industry legislation.

    In order to dispute a credit listing which you believe shouldn’t be there, you must identify where the Creditor has not adhered to current legislation when placing the notation on your credit file. There is a whole barrage of points which need to be met in order to constitute a valid listing, and if you have not been made aware of all the avenues for dispute, then you could be doing yourself and your case a disservice.

    A reputable credit repair Lawyer should dig deeper to conduct an audit-like investigation of your credit complaint to uncover errors or non-compliance.

    For more information on credit repair, visit our website www.mycralawyers.com.au or contact a Credit Repair Advisor on 1300 667 218.

    Image: Ambro/ www.FreeDigitalPhotos.net

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  • Help to reduce your risk of identity theft

    Identity theft“Identity is one of our most valuable assets – if it is stolen, the stress and financial costs can last for years,” says Attorney-General Mark Dreyfus QC. According to the Attorney-General, identity theft is currently at 7% and rising (up from 5 per cent in the previous year)* – and so a new booklet has been formulated to give Australians practical advice on guarding their identity and what to do if they think it’s been stolen. We offer a link to this booklet and encourage all of our readers to download it, and even print it out and give it to someone you know who you think may be at risk. It just may save your bank accounts, your identity and your credit file from misuse.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair, and www.fixmybadcredit.com.au.

    The booklet ‘Protecting Your Identity’ was launched by the Attorney-General last week. For anyone who is not so familiar with the workings of identity theft, it is a comprehensive document on the how’s and whys of identity theft. We found this page to be particularly relevant:

    Why Should I Be Concerned About Identity Theft?

    Once your identity has been stolen it can be almost impossible to recover. You may have problems for years to come. Some of the things that criminals may be able to do with your identity include:

    • tricking your bank or financial institution into giving them access to your money and other accounts

    • opening new accounts and accumulating large debts in your name which will ruin your credit rating and good name

    • taking control of your accounts including by changing the address on your credit card or other accounts so you don’t receive statements and don’t realise there is a problem

    • opening a phone, internet or other service account in your name

    • claiming government benefits in your name

    • lodging fraudulent claims for tax refunds in your name and preventing you from being able to lodge your legitimate return

    • using your name to plan or commit criminal activity, and

    • pretending to be you to embarrass or misrepresent you, such as through social media.

    Identity theft is the curse of the 21st Century and that is becoming more evident in our industry of credit rating repair. There are more and more people needing help with repairing their credit file due to having their identity misrepresented in some way.

    Often the first time we are aware of identity theft is when we apply for credit and are flatly refused due to defaults on our credit file that are not ours.

    Credit file defaults are difficult for the individual to remove and generally people are told by creditors they remain on our file for 5 years, regardless of how they got there.

    Although it seemed so easy for the fraudster to use your good name in the first place, you are now faced with proving the case of identity theft with copious amounts of documentary evidence.

    If you have neither the time nor the knowledge of our credit reporting system that you may need to fight your case yourself, you can seek the help of a credit repairer. A credit repairer can help you to clear your credit rating and restore the financial freedom you rightly deserve.

    The reason a credit repairer is usually so successful in removing your credit file defaults, is their relationships with creditors, and their knowledge of current legislation.

    If you have just found out you are a victim, we recommend you also contact the Police. Don’t be embarrassed – it is only through identity theft being reported that data gets collected and appropriate preventative measures eventually get put in place.

    Top Tips for Preventing Identity Theft

    In a statement to the media last week, Mr Dreyfus also outlined some simple steps Australians can take to reduce their risk of becoming a victim of identity theft:

    • Secure your mailbox with a lock and, when you move, redirect your mail.

    • Be cautious about using social media, and limit the amount of personal information you publish online.

    • Secure your computer and mobile phone with security software and strong passwords, and avoid using public computers for sensitive activities.

    • Secure your personal documents at home and when travelling.

    • Learn how to avoid common scams at www.scamwatch.gov.au.

    • Be cautious about requests for your personal information over the internet or phone and in person in case it is a scam.

    • Investigate the arrival of new credit cards you haven’t requested or bills for goods and services you have not purchased.

    • Be alert for any unusual bank transactions or missing mail.

    • If you are a victim of identity theft, report it to the police and any relevant organisations.

    • Order a free copy of your credit report from a credit reporting agency on a regular basis, particularly if your identity has been stolen.

    * Last year a survey commissioned by the Attorney‑General’s Department found 7 per cent of respondents had been victims of identity crime in the previous six months – up from 5 per cent the previous year.

    Image: Victor Habbick/ www.FreeDigitalPhotos.net

  • Watchdog criticised over lack of prosecutions for fraudsters and identity thieves

    Identity theftPeople are starting to get angry over scams and identity theft. As anyone with a computer, a telephone or who banks would know – the attempts to steal our financial information, or to scam us online are getting more and more frequent, but it seems the prosecutions are not increasing. We examine Michael Pasoce’s controversial opinion piece from todays The Age. The piece refers to criticism that the Australian Competition and Consumer Commission and Police are ignoring 99.9 per cent of scamsters.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    Michael Pasoce’s article Watchdog lacking any bite as scammers fleece us is pretty damning of the ACCC and the Australian Police, and their lack of ‘bite’ in matters of prosecution of fraudsters. Here is an excerpt from Pascoe’s article today:

    “The ACCC doesn’t even try to lumber fraudsters and scam artists – it just hopes to “disrupt” them with a little education of us mugs. Education is indeed a good thing and that deserves a tick, but locking up the very nasty little perpetrators wouldn’t be a bad idea either. They’re not even trying.

    Responsibility for that of course should be shared with the various police fraud squads – but they are rather hopelessly under-manned, under-skilled and really only interested in the big stuff, preferably if it’s rather simple, old-fashioned fraud.

    Many of the online and telephone con artists are based overseas, but there are plenty of low-life locals as well. Successful fraudsters keep their jobs relatively small and remain mobile. That way the police and ACCC won’t bother taking an interest, even when a case is handed to them on a platter.

    At last month’s Retail World conference (disclosure: I was paid to chair it), online retailers told how completely frustrated they were in trying to get any authority to take action over fraud.

    For example, a fridge is purchased online by someone using a credit card. Fridge is delivered. The owner of the credit card phones his or her bank claiming they did not authorise the purchase – perhaps claiming a child used the card without permission. The bank refunds the money to their customer and hits the retailer with a charge-back. In the words of the Queensland Police website, the retailer then becomes the complainant – nearly all the time, police don’t want to know about it.

    What’s more, from the same website: “If the cardholder is reimbursed for the loss, financial institutions have agreed that they do not require the cardholder to report the matter to police for investigation.”

    The banks are treating this sort of fraud as merely a cost of business. The retailers are getting nothing in return for their merchant fees.

    A major online white goods retailer told me one of the fraudsters tried to hit them a second time. The retailer attempted to interest the local gendarmes in catching the thief in the act – but they weren’t interested.”

    Pascoe argues that the supposed authorities have been overwhelmed by this class of crime.

    “The law is too complicated in dealing with it, the manpower to tackle it is not forthcoming, there is yet again no sign of anyone having fire in the belly, a desire to kick heads. The scumbags who prey upon the gullible effectively have a free hand to go forth and defraud while police will visit a pop star’s hotel room to inspect a half a joint,” he says.

    So if it all too complicated – is the argument still there for reporting scams and other forms of identity theft to Police or other authorities even if no monies are lost?

    Absolutely. Without reporting, authorities won’t have any idea of the scale of the problem, and that is the first step towards fixing it. I have long been of the belief that not requiring the reporting of fraud which has been reimbursed by banks is exacerbating the problems in this area. The thing is, all of these small instances may just be a drop in the ocean, but they could all be drops from the same source.

    Was Pascoe right to call to task the authorities over a lack of prosecutions in this area?

    Absolutely. It is important that we apply pressure to government and to Police, to find a way to locate and prosecute fraudsters, or to justify why they can’t.

    In reality, prosecutions can be difficult simply because of the global nature of this crime. Small time fraudsters may be doing all of the leg work here – and on selling the information to global syndicates. Or fraudsters may be able to buy personal information obtained by international fraudsters and use it to obtain credit in Australia. It is a tangled web – but it’s one we should be throwing time, money and resources into now and in the future.

    Identity theft and your credit file

    Cyber-crime can be perpetrated by stealing the personal information of individuals, generally through obtaining it via virus software known as ‘malware’ or by phishing scams which appear to be genuine companies asking for personal details which can then be used to generate fake identification. Then the fraudster will go about taking out credit in the victim’s name. If the theft goes undetected, the fraudster can be racking up thousands of dollars in debt in the person’s name. This is when identity fraud affects the victim’s credit file. When this happens, it is not only the victim’s bank accounts that can be affected, but more importantly their ability to obtain credit in the future.

    In Australia, if a credit file holder fails to make repayments on credit past 60 days, then a default can be placed on their credit file by the creditor. This default remains on the credit file for 5 years, and can severely hinder their chances of getting credit once it is placed. For the identity theft victim, this can leave them severely disadvantaged for 5 years, and unable to take out legitimate credit. The only way they may be able to restore their good name is through lots of hard work proving to creditors they did not initiate the credit.

    For information on preventing identity theft, and help with repairing a credit rating following fraud, contact MyCRA Credit Repair, or call tollfree 1300 667 218.

    Image: Victor Habbick/ www.FreeDigitalPhotos.net

  • Update on mandatory data breach notification laws

    mandatory data breach notificationThe long-awaited amendments to the Privacy Act 1988 making reporting of serious data breaches mandatory, has been passed in the House of Representatives and had its second reading in the Senate yesterday. We  cover what this Bill will mean if it is passed, and what it means for your credit file.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    If passed by both houses, the Privacy Amendment (Privacy Alerts) Bill 2013 will be implemented as part of amendments to the Privacy Act in March next year, alongside other amendments.

    The amendments will force businesses and government agencies covered by the Privacy Act 1988, to notify people when a serious data breach affecting their privacy occurs.

    The notification requirements do not apply to all data breaches, only breaches that give rise to a risk of serious harm. Serious harm could include physical and psychological harm, as well as injury to feelings, humiliation, harm to reputation and financial or economic harm.

    The Commissioner will be able to seek civil penalties if there is serious or repeated non-compliance with the notification requirements and the Information Commissioner will be able to direct agencies and business to notify individuals of data breaches.

    The legislation has been introduced following criticism of the current voluntary reporting system. It seems when faced with a choice, many entities think of the bottom line or other publicity concerns rather than the security of people’s personal or financial information.

    A bit about how data breaches can threaten your credit file

    Personal information in the wrong hands can lead not only to identity fraud, but the misuse of the victim’s credit file, which can have significant long term consequences.

    A lot of identity fraud is committed by piecing together enough personal information from different sources in order for criminals to take out credit in the victim’s name. Often victims don’t know about it right away – and that’s where their credit file can be compromised.

    Once the victim’s credit rating is damaged due to defaults from this ‘stolen’ credit, they are facing some difficult times repairing their credit rating in order to get their life back on track.

    These victims often can’t even get a mobile phone in their name. It need not be large-scale fraud to be a massive blow to their financial future – defaults for as little as $100 will stop someone from getting a home loan.

    Once an unpaid account goes to default stage, the account may be listed by the creditor as a default on a person’s credit file. Under current legislation, defaults remain on the credit file for a 5 year period.

    What is not widely known is how difficult credit repair following can be – even if the individual has been the victim of identity theft, there is no guarantee the defaults can be removed from their credit file. The onus is on them to prove their case and provide copious amounts of documentary evidence.

    Unfortunately data breaches are difficult for individuals to have any control over, and the only way people can ensure their details are safe are to demand that the companies they deal with have strong IT systems before disclosing that information.  People should adopt the philosophy of a need-to-know basis for disclosing their personal information. They should always question the need for it to be handed over. If it is not essential, they shouldn’t do it.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

  • Banks encouraged to lift their standards around guarantor education.

    Guaranteed loans – they’ve become more prevalent as house prices rise, and as access to business credit changes – but this type of loan can come with significant risk depending on how it’s set up. guaranteed loanIt often requires a savvy, credit-educated person to sign on the dotted line to take on a guaranteed loan. But this isn’t always the type of person asked to sign a guarantee. In response to some complaints by guarantors who claim they have not been given the appropriate advice, a survey was issued to banks to review their compliance with the Code of Banking Practice by its review body, the Code Compliance Monitoring Committee. We examine the findings of this survey, and put guaranteed loans into perspective with the possible implications to the guarantor’s credit file.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    Guaranteed loans can be complicated, and can leave some individuals vulnerable. The Code of Banking Practice has identified this, and has set out requirements for banks in dealing with the area of guaranteed loans (28.3-28.6 of the Code of Banking Practice) which include requiring banks to issue prospective guarantors a warning notice explaining their rights and obligations as a guarantor. Banks also can’t accept a guarantee until the guarantor has sought independent advice.

    But has this been enough to protect individuals who find themselves asked to guarantee a loan? The Code Compliance Monitoring Committee (CCMC) has found more can be done by banks to promote better compliance, and ultimately better understanding by individuals of the risks involved in guaranteeing a loan.

    The CCMC is an independent review body for banks’ compliance to the Code of Banking Practice. According to the CCMC report on guaranteed loans, the body undertook a survey of banks due to a number of allegations of breaches of the Code by banks:

    “During 2011-2012, the CCMC received a number of concerns and enquiries about alleged breaches of the Code by banks in this area,” the report states.

    The CCMC identified a need going forward to ensure compliance, and better compliance by banks to the Code concerning guaranteed loans. It considered the economic climate will likely continue to provide an environment where guaranteed loans will rise:

    “The high number of credit facilities currently supported by a Guarantee indicates that these play an important part in the provision of credit, both to individuals and to businesses. Issues can and do arise however when banks do not comply with their own procedures. While the number of cases where issues have arisen in respect of Guarantees is comparatively small, the impact on individuals in these circumstances can be considerable. The current economic environment also suggests that this may continue to be an important issue over the short to medium term. This is a view shared by the consumer advocates interviewed by the CCMC as part of this Inquiry.”

    The CCMC’s report demonstrates that overall banks were meeting the requirements of the Code by having good systems and procedures in place, and were monitoring those systems. But it also found that some banks could do more. It cited some good industry practices amongst some banks that could be applied across the board to ensure prospective guarantors were making informed decisions. The CCMC says it recognises that banks have an important role in ensuring relevant information if both provided and considered by prospective guarantors prior to the execution of the Guarantee:

    “The Code sets out the minimum standards banks have agreed to follow when dealing with personal and small business customers. Banks should, therefore, consider how they satisfy themselves that informed decision making is taking place, particularly where they identify that a prospective guarantor might be vulnerable, whether due to their relationship with the borrower or where they have limited capacity to understand the credit contact, such as where English is a second language. The CCMC also considers that the more complex the Guarantee and the loan documentation, the greater is the obligation on the bank to ensure the potential guarantor engages in informed decision making.

    The CCMC accepts, however, that there is a duty on the individual to consider carefully the information provided by banks before agreeing to become a guarantor,” it states.

    Disclosures of information and warnings were considered imperative to the guarantor making an informed decision about becoming a guarantor. The CCMC recommended banks ensure that information and notices are provided to the prospective guarantor in a timely manner to ensure they have sufficient time to consider their position and the risks associated with the Guarantee prior to execution.

    This will ensure that the prospective guarantor has sufficient time to consider the risks and financial liabilities of becoming a guarantor before entering into the agreement.

    Good industry practice suggests that even a prospective guarantor who has received independent advice, should be given at least 24 hours to consider the Guarantee documents prior to signing.

    This will increase the prospective guarantor’s opportunity to consider the risks and financial liabilities of becoming a guarantor in the context of the independent advice given, before entering into the agreement.

    They also brought up the need for banks to consider the vulnerability of a prospective guarantor:

    “Banks which have effective processes to identify classes of prospective guarantors and take additional steps to ensure they receive information about their rights and responsibilities and the financial position of the borrower, are better placed to comply with their Code obligations.”

    These vulnerable individuals may include elderly people, non-English speakers and people who offer a family home as collateral. The CCMC will follow up this Inquiry in the 2013/14 Annual Compliance Statement, to determine what changes, if any, banks have implemented to systems and procedures in response to the findings of the survey.

    Earlier in the year, we reported that some banks had begun to relax requirements around guaranteed loans to include a new term – Security Guarantee. This meant the guarantor would no longer have to be a parent, sibling or spouse of the borrower. But identified at the time, were some significant risks to this loan which arguably far outweigh the benefits.

    On a guaranteed loan the guarantor is liable for the debt if the borrower fails to make repayments. The guarantor’s credit rating is then linked with the credit rating of the borrower through the loan, despite having little control over the outcome of repayments.

    If the debtor defaults on their loan, under certain terms the Credit Provider can pursue the guarantor to recover the debt, which can include default listing the guarantor. Negative entries such as defaults on a person’s credit file will impact the ability to obtain credit for 5 years.

    In cases of significant arrears, the bank begins to use the property the guarantor put forward as collateral to recover the outstanding debts.

    It is timely that the CCMC should review banking procedures in this area. The upward trend in guaranteed loans may increase the exposure of vulnerable individuals to guaranteed loans in their many forms.

    It is imperative that all facilitators take on an educational role – despite it ultimately being the decision of the guarantor themselves. Further education at that level will help to identify more who are vulnerable, and protect those who may not be fully informed of their rights, their obligations and the risks to their finances and their credit file before entering a guaranteed loan.

    Image: Ambro/ www.FreeDigitalPhotos.net

  • Gamers: cheating could cost you your credit rating

    If you or someone in your family is a gamer, then you would be familiar with gamershacks. Hacks and cheats are designed to give a gamer help with a game by allowing them to download useable software for assistance. But security company, AVG says downloading hacks could open up a can of worms not only for the gamer, but for anyone else that uses the computer, because you have probably also just downloaded Malware. We look at how this occurs, what Malware does and what the risks are for your personal information and  your credit file.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au

    Antivirus vendor AVG has issued a warning to gamers following research which suggests that more than 90 per cent of ‘hacks’ available online contain some form of malware or malicious code.

    Hacks and cheats are commonly incorporated into games; however, the sheer popularity of online multiplayer games has made gamers prime targets for cybercriminals.

    “The research suggests more than 90 per cent of hacks, cracks, patches, cheats, key generators, trainers and other downloadable game tools contain malware or executable code.

    These hacks are commonly delivered via unregulated torrents and file sharing sites, an easy vector for malware.

    Malware inadvertently downloaded with hacks can give attackers easy access to your online gaming account as well as other sensitive information such as online banking details, personal data and passwords for other online services,” Stay Smart Online recently advised.

    They advise gamers to only download patches from the game’s official site, and to avoid any unofficial software. They also recommend:

    Always be suspicious of any files downloaded from torrents and file sharing websites.

    Ensure you always have up-to-date security software installed on your computer.

    Use unique account logon and password information for each of your online gaming accounts (and every other online service you use).

    What is ‘malware’?

    Malware— is short for ‘malicious software’. It is a type of malicious code or program that is used for monitoring and collecting your personal information (spyware) or disrupting or damaging your computer (viruses and worms). Stay Smart Online explains in more detail:

    Spyware

    The term spyware is typically used to refer to programs that collect various types of personal information or that interfere with control of your computer in other ways, such as installing additional software or redirecting web browser activity.

    Examples of spyware include:

    Keyloggers  

    A keylogger is a program that logs every keystroke you make and then sends that information, including things like passwords, bank account numbers, and credit card numbers, to whomever is spying on you.

    Trojans

    A Trojan may damage your system and it may also install a ‘backdoor’ through which to send your personal information to another computer.

    Viruses and worms

    Viruses and worms typically self-replicate and can hijack your system. These types of malware can then be used to send out spam or perform other malicious activities and you may not even know it.  Both can use up essential system resources, which may lead to your computer freezing or crashing.  Viruses and worms often use shared files and email address books to spread to other computers.

    malwareMalware and your credit file

    If fraudsters can get their hands on your personal information they can steal passwords to not only the gaming site, but also to the bank or credit accounts of anyone who uses that computer.

    They can also create a patchwork quilt of information that can allow them to eventually have enough on you to request duplicate identity documents (identity theft), and apply for credit in your name (identity fraud).

    Running up credit all over town, perhaps buying and selling goods in your name, or in some cases mortgaging properties –you may have a stack of credit defaults against your name by the end of their ordeal – and sometimes no proof it wasn’t you that didn’t initiate the credit in the first place.

    Recovery can be slow, and in some cases you may have no way to prove you weren’t responsible for the debt – with fraudsters leaving no trail and the actual identity theft happening long before the fraud took place.

    Who might be most at risk?

    Gamers often aren’t worried about risks to their personal information as they are often young people who consider they don’t have much to lose, when in fact they do. Firstly, if Malware is downloaded – it puts the entire family at risk. But secondly, a young person is just as vulnerable as anyone to exploitation. There have been reports of crooks harvesting the personal information of young people and storing it until the victim turn 18. Australian Police have issued warnings on the issue of data warehousing in relation to Facebook in the past, but fraudsters won’t be fussy about where they get it from. It all has a lucrative price on the ‘black market’ of personal information.

    For more help with teaching kids and young people about online risks, go to the Stay Smart Online website http://www.staysmartonline.gov.au/kids_and_teens.

    Visit our main website www.mycra.com.au for more information on identity theft and your credit file.

    Image 1: Arvind Balaraman/ www.FreeDigitalPhotos.net

    Image 2: Salvatore Vuono/ www.FreeDigitalPhotos.net

  • Struggling to pay your mortgage or loan? Your bank says they want to help.

    financial hardshipIt may be a foreign concept to some people to turn to their bank when they are experiencing financial difficulty, but asking for help from your bank could be the most savvy thing you can do for your finances, and ultimately your credit file if you are in trouble. New financial hardship laws which came into effect in March 2013 have been embraced by banks, and the Australian Bankers’ Association (ABA) has today announced a package which is designed to help make the process clearer for consumers who are experiencing temporary financial difficulty. We look at the package in detail, what it means for your credit file and your ability to obtain credit when you recover financially.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    As a Cancer survivor, I know all too well what it’s like to be in a worrisome financial situation. When you have to take time out from your business or employment to recover your health, the bills can pile up. I remember trying to talk to my bank at the time about freezing my mortgage so I had one less worry. But that was a difficult thing to do – especially for someone whose small business used credit accounts. In my experience, my bank wasn’t eager to offer the hardship, and when they did, it was under terms too difficult for me to accept. So I borrowed my way out of trouble, and luckily – I recovered quickly and was able to get back on my feet again. But many people in the past have not been so lucky. They have run into real trouble, and banks may have been criticised for not being open with the existence of their hardship policies, or willing to vary credit terms unless the customer could jump through the right hoops to secure it.

    But with new legislation Consumer Credit Legislation Amendment (Enhancements) Bill 2012 being passed this year, there have come new rights for those in temporary financial trouble. Now the banks are taking a proactive stance on encouraging open communication and variations to the original credit contract of those consumers ‘doing it tough.’

    The ABA and banks in consultation with consumer and community groups have developed a package of initiatives that are proposing to promote good practice, clearer hardship processes and provide useful information to support their customers in dire financial circumstances.

    This is reportedly in response to concerns raised by stakeholders around a general lack of awareness about hardship assistance offered by banks.

    Steven Münchenberg, Chief Executive of the ABA, says research shows only one out of four bank customers know that banks offer hardship assistance.

    “If customers find themselves in financial difficulty, they need to take some action because money troubles don’t usually go away on their own. Don’t ignore the problem and talk to your bank as early as you can. Customers can also call an independent financial counsellor or ask your bank for a referral to an independent financial counsellor,” he said in a media statement.

    The ABA estimates that over 135,000 customers have been provided with hardship assistance by the main retail banks over the past year.

    Banks have reported that the number of customers who take advantage of financial hardship arrangements increases when economic conditions deteriorate. The key driver of hardship assistance is reduced income due to unemployment.

    Banks have also reported that customers have benefited from temporary assistance following a natural disaster. However, assistance during these times does not have a significant impact on the overall number of customers who are provided with hardship assistance.

    Mr Münchenberg also says illness, injury or a relationship breakdown can cause financial difficulties.

    The ABA’s consumer factsheet on hardship variations (pdf) explains what some of the hardship assistance options could be:

    Hardship arrangements cover the time between when your circumstances change and when you can start repaying your debts in full or varied as agreed.

    In most cases, people just need some temporary help to get them through the tough times and arrangements of between three and six months are generally suitable.

    The arrangements available will depend on your personal circumstances and financial situation. Somemeasures may include:

    • deferring or reducing loan repayments

    • restructuring and consolidating loans

    • altering loan repayments to interest-only

    • changing limits on lines of credit

    • waiving penalties for early withdrawal of a term deposit

    • freezing loans in exceptional circumstances, such as after an emergency event or natural disaster

    • providing a moratorium on collections action • providing alternative banking arrangements.

    When considering the type of assistance that might be appropriate, banks will assess the situation on a case-by-case basis and consider your specific circumstances, such as your overall financial position and whether assistance would genuinely be able to help you.

    Banks also have to factor in business considerations, such as whether providing the assistance is consistent with their internal policies, commercial costs and management practices.

    If your financial situation has permanently deteriorated and you can’t meet regular repayments over the long term even with your bank’s help, you might need to consider other options and make some difficult decisions.

    While people rarely have to face this situation, if it occurs you may have to sell your property, refinance your business or consider bankruptcy or insolvency arrangements.

    How will asking for a hardship variation impact my credit file?

    We see the emphasis on hardship variations as a positive change for consumers to be able to talk to their bank and actively get help to improve their circumstances. One of the main differences between asking for and obtaining an official variation in your credit obligations compared with simply not paying your bills is that you avoid the bank placing a default listing on your credit file (provided you meet the new obligations that is). There is a big incentive to come to try to come to an arrangement with your bank prior to being in default (60 days in arrears) – as any arrangements made after that time will be recorded on your credit file as well as your default.

    Secondly, there is also an incentive to put your hand up and ask for help in the early days – prior to being even one payment cycle behind in your repayments. Any time you fail to make a repayment with your bank on time, the late payment will be recorded on your credit file – so for example if you are unable to make this month’s mortgage repayment by the due date, that will be recorded on your credit file, along with the date you made the payment. Although lenders won’t see this data until March 2014, it is being recorded now.

    Any person who makes an official hardship variation which is accepted by their bank will be spared from being recorded as in default, but may not be spared from the late payment notations which are incurred prior to the acceptance of the hardship variation. So the incentive really is there to get in as early as possible if you are experiencing temporary financial difficulty and speak with your bank to make new arrangements to suit you.

    Where do I go from here?

    You can get assistance through the ABA’s Doing It Tough website, or you can contact your bank or building society directly and ask to speak with the Financial Hardship Variation Team. Using the words ‘financial hardship’ will help make it clear to the people you speak with at the bank about what it is you need. Ideally, act before you fall into arrears on your account – to save your credit file when you recover from this difficult time.

    For additional advice, visit ASIC’s Money Smart Website Trouble with Debts.

    To check what is being seen by lenders about you, it is a good idea to get a copy of your credit file. This is free once every 12 months from Australia’s credit reporting agencies, and will be sent within 10 working days. If there is anything on your credit report which you are unsure about, or which seems inaccurate or inconsistent, you do have the right to have the information rectified. Contact MyCRA Credit Rating Repair for more information on disputing a credit listing or to obtain a free copy of your credit report 1300 667 218.

    Image: imagerymajestic/ www.FreeDigitalPhotos.net

  • Mandatory data breach notification Bill before Parliament

    data securityThe Attorney-General has put before Parliament a mandatory data breach notification bill, which will require businesses and government agencies to notify people when a data breach affecting their privacy occurs. In our view this long overdue legislation is imperative to protect individuals who have their personal information unsecured in some way.  This will allow those individuals affected to take swift steps to secure their own records and personal information from identity crime. We look at why these laws are so important and how a data breach can impact a person’s credit file.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    Remember when Sony was hacked? Thousands of Sony Australia customers were kept in the dark about it for some time – and there wasn’t a thing our Privacy Commissioner could do after the fact, due to there being no legal requirement in Australia on businesses or other entities to notify individuals when a data breach in their business could impact their personal information.

    Events like that – along with a long list of other breaches – have inspired changes within our legislation.

    The Attorney-General Mark Dreyfus QC handed over The Privacy Amendment (Privacy Alerts) Bill 2013, for its first reading in parliament yesterday. If passed, amendments will be implemented along with other major amendments to the Privacy Act 1988, on March 12, 2014.

    The new laws will require notification of data breaches to the Office of the Australian Information Commissioner, on all entities covered by the Privacy Act 1988, including many businesses.

    The notification requirements do not apply to all data breaches, only breaches that give rise to a risk of serious harm. The Commissioner will be able to seek civil penalties if there is serious or repeated non-compliance with the notification requirements.

    “To make sure that the new laws have teeth, the Information Commissioner will be able to direct agencies and business to notify individuals of data breaches,” Mr Dreyfus said in a statement to the media on Tuesday.

    In a Computerworld article ‘Proposed mandatory data breach notification bill read in Parliament’, Privacy Commissioner, Timothy Pilgrim, reportedly said he has supported the introduction of mandatory data breach notification laws in Australia since they were first proposed by the Australian Law Reform Commission in 2008.

    “The last couple of years have seen a number of high-profile data breaches and subsequent own motion investigations initiated by me, and research suggests that the frequency of data breaches in Australia has continued to grow over the past three years,” he said.

    Despite this upward trend, the Office of the Australian Information Commissioner (OAIC) received 46 data breach notifications in the 2011–12 financial year, an 18 per cent decrease from the previous year.

    “I am concerned that we are only being notified of a small percentage of serious data breaches that are occurring,” Pilgrim said. “Many critical incidents may be going unreported and consumers may be unaware when their personal information could be compromised.”

    Up to now, whilst organisations are encouraged to disclose data breaches to the Commonwealth Privacy Commissioner, it has not been mandatory to do so. There has been much criticism over companies “holding out” on their customers following a data breach, and waiting days or up to a week or so to notify customers that their personal information may be at risk.

    During this time, it has been argued that hackers have had free access to this personal information without the customer doing anything to minimise their own risk, such as cancelling accounts, changing passwords and flagging their credit accounts and credit file.

    We agree this is an area which is overdue for legislation, especially going in hand with other new Privacy Amendments already passed.

    We can’t take lightly the possibility that any company that keeps data on its customers could be exposed to data breaches. Identity theft is becoming more prevalent, and personal information is lucrative for fraudsters.

    Unfortunately it seems everywhere people turn some company has been hacked – and it seems every entity with a computer is vulnerable. It is still extremely scary the level of risk peoples’ personal information undergoes these days when it is stored online.

    Personal information in the wrong hands can lead not only to identity fraud, but the misuse of the victim’s credit file, which can have significant long term consequences.

    A lot of identity fraud is committed by piecing together enough personal information from different sources in order for criminals to take out credit in the victim’s name. Often victims don’t know about it right away – and that’s where their credit file can be compromised.

    Once the victim’s credit rating is damaged due to defaults from this ‘stolen’ credit, they are facing some difficult times repairing their credit rating in order to get their life back on track.

    These victims often can’t even get a mobile phone in their name. It need not be large-scale fraud to be a massive blow to their financial future – defaults for as little as $100 will stop someone from getting a home loan.

    Once an unpaid account goes to default stage, the account may be listed by the creditor as a default on a person’s credit file. Under current legislation, defaults remain on the credit file for a 5 year period.

    What is not widely known is how difficult credit repair following can be – even if the individual has been the victim of identity theft, there is no guarantee the defaults can be removed from their credit file. The onus is on them to prove their case and provide copious amounts of documentary evidence.

    Unfortunately data breaches are difficult for individuals to have any control over, and the only way people can ensure their details are safe are to demand that the companies they deal with have strong IT systems before disclosing that information.  People should adopt the philosophy of a need-to-know basis for disclosing their personal information. They should always question the need for it to be handed over. If it is not essential, they shouldn’t do it.

    The fact that our country is attempting to legislate this important area is a big step in the right direction. Forcing companies to act quickly would minimise the harm which could occur to the victims’ financial identity and credit file information. Whilst it won’t prevent all data breaches, it will encourage better security. A requirement to disclose potentially harmful breaches would mean a company’s bad security is thrown right into the limelight. And not even the big wigs would want that.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • Westpac customers warned: don’t be fooled by scam emails

    phishing emailBE CAUTIOUS WITH EMAILS FROM BANKS –EVEN YOURS. You may have received a “Security Upgrade” email from Westpac recently. If you are a Westpac customer, you may have read this email. You may have even taken it seriously… We want to warn you, this email is a scam! We describe what this email looks like, what it’s designed to do, and what you need to do if you come across it. If you are not a Westpac customer, this may still be extremely important for you, as these types of emails are targeting you in different forms every day and can impact not only your bank accounts, but also your personal and financial identity.

     

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    On Tuesday the Government’s ‘Stay Smart Online’ website sent out an alert about a very fishy phishing email targeting Westpac Bank customers. The SSO alert is below:

     

    Westpac customers targeted again by phishing emails

    28 May 2013

    Email warns of security upgrade, but links to fake banking site

    On 23 May 2013, antivirus vendor AVG issued a warning about the circulation of fake security notification emails pretending to originate from Westpac.

    Like similar fake emails that have targeted Westpac, this example claims to be addressing security concerns over a “recent spate of fraud and identity theft”. It advises that a security upgrade is being undertaken and will be effective once customers login to their account.

    The email includes a number of tell-tale errors that suggest it is a fake. In the image below, AVG has provided an overview of the errors which can help to identify it as a scam.

    AVG Westpac phishing email

    Image credit: AVG

    The fake banking website linked from this email looks similar to Westpac’s current online banking logon page.

    Don’t be fooled. This page is set up explicitly to capture your banking details.

    Westpac phishing email

     [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][Image: SSO]

    Avoid phishing emails

    Always be suspicious of unsolicited emails.

    Do not click links or open attachments. The best advice is to simply delete the email.

    If you are uncertain about an email you can always cross check the information by going independently to the company’s website or by calling the company directly.

    Westpac hosts a list of examples of ghost sites/fake sites that mimic its online banking page.

    Many reputable websites will specify how they will communicate with you on their website. Anything outside of this is suspicious. Westpac provides useful information about security on its website.

     

    The ins and outs of phishing scams

    Phishing scams are generally emails or text messages like the Westpac email, which impersonate genuine companies in the hope of tricking victims into giving out their personal and financial information.

    The aim of phishing is to steal information like bank and credit account numbers, passwords, and other crucial data.

    The ACCC’s Scamwatch website warns about phishing emails also. It warns they are not easily distinguishable from genuine corporate communication:

    “Phishing emails often look genuine and use what look to be genuine internet addresses—in fact, they often copy an institution’s logo and message format, which is very easy to do. It is also common for phishing messages to contain links to websites that are convincing fakes of real companies’ home pages.

    The website that the scammer’s email links to will have an address (URL) that is similar to but not the same as a real bank’s or financial institution’s site. For example, if the genuine site is at ‘www.realbank.com.au’, the scammer may use an address like ‘www.realbank.com.au.log107.biz’ or ‘www.phoneybank.com/realbank.com.au/login’.”

    The ramifications of falling for a phishing scam

    Clicking on links in phishing scams can mean your banking details are captured by fraudsters and can be accessed in order to drain your bank accounts. But in addition to this, just the simple act of clicking on the link can put you in danger. Many phishing emails are also designed to infect computers through virus-containing links in the emails.

    This could mean that you could download a Trojan or similar virus designed to steal your financial information – and you may have no idea its happening.

    This could be dangerous for your credit file. Because while you are carrying out your normal online transactions, the Malware that you have installed could be tracking passwords, financial details and personal details about you. This could be used by a clever and determined cyber-crook in order to build a fake identity in your name.

    Suddenly credit could be accessed in your name, and you probably won’t know about it until you apply for credit yourself and are refused. This presents real problems for fixing your credit rating, because what we know about removing unfair or inaccurate listings from your credit file is that you must provide evidence and proof that you didn’t initiate the credit. This can be difficult to do when you have no idea how the theft of your information occurred. It can be a nightmare for victims.

    So don’t get hooked by a phishing scam. If you receive an email that looks legitimate – go independently to the Bank or other company’s website to verify it. Or use the official Bank phone number (not the phone number presented on the email) to call the bank directly to verify the email is legitimate.

    Top image: David Castillo Dominici/ www.FreeDigitalPhotos.net

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  • Cyber-security to protect your financial identity.

    SSO_Logo+WebHow can what you do online impact your ability to obtain credit? Understand the risks and protect your credit rating.

    MyCRA is a partner for Cyber Security Awareness Week 2013, running this week until 24 May.  The aim of Awareness Week is to help Australians using the internet – whether at home, the workplace or school – understand the simple steps they can take to protect their personal and financial information online.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    Cyber Security Awareness Week 2013 is an Australian Government initiative, held annually in partnership with industry, community and consumer groups and state and territory governments.

    One of the big risks for Australians is that their internet use will lead to fraudsters stealing their personal information for purposes of identity theft (now the fastest growing crime in Australia) and potentially fraud. The good credit rating of the victim could then be damaged.

    It is reported that 1 in 6 people in Australia is a victim or knows someone who has been a victim of identity theft or fraud in the past 6 months.

    Victims are not always ‘gullible’ as may be the impression in the wider community. Many experts say it is not a matter of if you experience an identity theft attempt, but when.

    Increasingly it comes from professional fraudsters whose main occupation is to steal personal information and financial details in order to commit fraud.

    The internet is a big source of personal information and its ever increasing use makes you more vulnerable to identity crime than ever.  This means identity crime can have very long arms – often it originates from overseas crime syndicates. Social networking, online banking, company databases can also be sources.

    The unlucky identity theft victim is unaware of the fraud until their identity is misused, and their credit rating with it. When identity theft damages your credit rating – it is because the fraudster has been able to overtake credit accounts, or has gained access to enough personally identifiable information about you to forge new identity documents.

    If credit accounts are not repaid – after 60 days you may be issued with written notification of non-payment and the intention for the creditor to list a default on your credit file. It is at this moment that some people who were previously unaware of any problems find out they have been victims of this more sophisticated type of identity theft.

    Protecting Your Financial Identity Online

    stay smart onlineYou can provide a safety buffer for yourslef and your family around one of the main channels for fraudsters to enter our lives – the internet.

    Remember the top tips

    Stay Smart Online encourages all Australians to remember these ten simple tips to improve their online security:

    1. Install and update your security software and set it to scan regularly
    2. Turn on automatic updates on all your software, particularly your operating system and applications
    3. Use strong passwords and different passwords for different uses
    4. Stop and think before you click on links and attachments
    5. Take care when buying online – research the supplier and use a safe payment method
    6. Only download “apps” from reputable publishers and read all permission requests
    7. Regularly check your privacy settings on social networking sites
    8. Stop and think before you post any photos or financial information online
    9. Talk with your child about staying safe online, including on their smart phone or mobile device
    10. Report or talk to someone if you feel uncomfortable or threatened online – download the Government’s Cybersafety Help Button

    For specific help with safe banking, we refer to the Australian Bankers’ Association’s recommendations:

    Protect your passwords – ensure you keep confidential your PIN and Internet banking logons and passwords. Avoid using the same logon/passwords for multiple websites, especially when it enables access to websites that include sensitive personal information. Set a pass code for your device and a PIN for your SIM. If your banking app allows logon with a PIN, make sure it is different to the one used to unlock your       mobile device. Make sure your password or code is something that’s hard for others to guess but easy for you to remember.  A bank will never ask you to provide passwords or PINs by e-mail or over the telephone.

    Lock – set your smartphone and tablet to automatically lock. The password will protect your device so that no-one else can use or view your information. Also store your device in a secure location.

    Contact your bank if you lose your smartphone or tablet – call your bank immediately to tell staff about the loss and provide your new phone number, especially if your bank uses an SMS message to authenticate transactions.

    Clear your mobile devices of text messages from banks especially before sharing, discarding or selling your device.

    Be careful what you send via text – never use text messages to disclose any personal information, such as account numbers, passwords or other personal information that could be used to steal your identity.

    Use only official apps – make sure to only use apps supplied by your financial institution and only download them from official app stores.

    Delete spam and scam e-mail – if the offer sounds too good to be true – it probably is.

    Guard identity information carefully and only provide it to trusted people and entities.  This includes date of birth, current address, driver’s licence and passport details.

    Anyone interested in online safety should subscribe to the email notifications from Stay Smart Online Alert Service. The Stay Smart Online Alert Service is a free subscription based service that provides home users and small to medium enterprises with information on the latest computer network threats and vulnerabilities in simple, non-technical, easy to understand language. It also provides solutions to help manage these risks.

    Also, you can look at securing different sections of your internet use in more depth with the help of Stay Smart Online’s key factsheets for online security.

    Check your credit file regularly, and act quickly on any discrepancies there – which can often be the first sign of identity theft. Copies of credit files can be ordered from one or more of Australia’s credit reporting agencies, and are free for the credit file holder once per year.

    Image 1: courtesy of Stay Smart Online

    Image 2: Ambro/ www.FreeDigitalPhotos.net

     

     

  • Use a budget to take advantage of low interest rates

    budgetIf you didn’t already know, interest rates are now at their all-time lowest at a reserve rate of 2.75 per cent. And banks have begun to lower their interest rates – which is good news for borrowers. In this week’s Make Credit Work For You post, we look at how can you best benefit from those cuts by saving.

    You might be saving for a home, or you might be saving in your home – but we show you how to budget. If you’re saving for a home loan, now seems like a great time to purchase – with interest rates at their all-time lowest. If you haven’t quite made it there with your deposit, we look at how a strict budget now might get you there quicker. If you own your own home, take advantage of these low interest rates by paying down your mortgage as fast as possible. This can give you space to re-borrow, to invest or to renovate in the future.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    When interest rates are low, you can borrow or if you have current debt, you can pay your debt down in less time. We show you how you can do that, with tips from Savingsguide.com.au. Their article ‘A Guide On How To Budget To Save Money’ caught my eye this week. With new credit laws coming, and new information about you becoming available to lenders very soon, I believe it’s time to help Australians develop some really good credit habits, and to have their credit reports reflecting that.

    Nothing helps with credit habits better than a budget does. As soon as you start with a budget, it forces you to take stock of what you have, and become aware of your spending and credit habits. Australians in that frame of mind are more prepared for next year’s changes to Privacy Laws. And prepared they do need to be. Borrowers will be under the microscope. And they need to be on top of their game when it comes to their finances to not be disadvantaged by credit reporting changes. Let’s look at an excerpt from Savingsguide’s article on how to create a budget:

    How to create a budget

    To make a budget, you must consider the following:

    Income

    Decide whether your budget is going to be weekly, fortnightly. I would usually choose whichever budget aligns with the regularity of when you get paid. Once you’ve decided, write down all the income you receive in that month.

    Expenses

    Write down everything you spend in a week. Chances are you won;t get it right on the first stab, as we spend unconsciously. Here are some ways to track what you’re spending for your budget:

    Keep a spending diary. Keep all your receipts, and tally them at the end of the week.

    Go through your daily bank account, to check for debits from your account (insurance, membership fees et) that you might not even have be aware of.

    Use a tracking app, such as Expense Manager or Expenditure.

    Are you in the red? Or in the black?

    Tally up your figures, and you’ll have an initial idea of whether you are running your finances in the red or the black. If you’re in the black, fantastic! You now can just add some extra space in your finances. If you’re in the red, a budget will help you to get back on track. Why not colour code using red and black to help you?

    Analyse where your money is going & where your budget is leaking

    Where is the money heading? What area of your life is draining your finances the most? Chances are, if your budgets look anything like mine, entertainment costs are always shocking. The amount I spend unconsciously on food, shows and late night tipples are, without a doubt, the major unnecessary drain on my income.

    What are your essential costs, and how much do you have left over once they’re paid for?

    Trim the fat from your budget

    Now look for where you can cut back. Discretionary spending is a major source of savings in a budget. Aim to reduce your spending, not cut it out entirely. Great budgets are consistently refined and improved, so start relatively gently. How much do you need to save to get into within your income? Where can that come from easily, and sustainably?

    Consider these points:

    Housing costs should only comprise 30% or less of your net income. If it’s costing more than that, perhaps it’s time to make some big decisions about where or how you live.

    The average Australian household spends the same amount on alcohol as they do in utilities per week. If that’s the case, there is a major saving opportunity there.

    We should always consider what we have (in the pantry, in the house to sell) when writing out budgets. We should aim to declutter our life to add extra money to our budget. Sell the stuff you don’t need people! Draft budget

    You now have a draft budget. I would call it a draft, as it is a work in progress, one that needs continual revision and maintenance. You should have allocated a general sum to each section of your life, including a sustainable and sensible amount you will be saving per week.

    Tips to help you succeed with your budget

    For the best results when budgeting, you should consider these three core principles:

    Automate your money. As soon as your pay comes in, automatically move your money into the sections you have decreed for your budget. This means money gets automatically deposited for rent, debt repayments, savings etc. We can be our own worst enemy, so take yourself out of the equation.

    Discretionary cash. For your entertainment budget throughout the week, I like to have it in cash. The reason? Because once it’s gone, I know I’ll just have to stay in and watch TV until next week.

    Keep it simple. It’s essential to not start out too strictly with a budget, it’s often where people fall down (more on this below). Remember, you can always save any money that’s left over and you can always change the amount you’re budgeting throughout the week.

    Maintaining your budget

    Once you have a budget, you will find yourself needing to occasionally maintain it and update it as you go. Track your budget progress

    The absolute best way of maintaining enthusiasm and drive is to watch how your finances have improved. Look at your dwindling debt, or increasing emergency fund. You’ll feel empowered and capable of continuing all the good work. Use a budget program

    Apps such as iReconcile or Moneybook can be a great way to easily manage you budget if you’re technically minded. Alternatively there is the Savings Guide made budget planner for purchase here.

    Constantly revise your budget

    I can’t stress this enough. Budgets are ongoing processes- sometimes they’re too harsh, sometimes they’re too soft. Could you save more? Are you living at an absolute pinch, and eating only two minute noodles? Extremes are never good, and great personal finance is about sustainable saving.

    Keep your budget goal orientated

    It’s easy to lose motivation, and everybody does. The key is to continue to look at your goals, adapt your goals and celebrate how much closer you are to achieving them.

    Fixing your budget

    Got a problem with your budget? Here are some solutions to common budgeting woes.

    Losing motivation: Your budget fit isn’t right. Either your budget is too tight, and you’re unhappy or it’s too loose and you’re not seeing the changes you need. Use some trial and error to work out what fit works for you. You can change your budget figures from week to week, until you get it right. The important thing is it’s both comfortable and effective.

    Broke the budget: It happens to everyone. Don’t give up on the whole thing because of one bad week. It’s a slip up, not game over, so just move on.

    Forgotten expenses: A major expense can easily be forgotten, and can easily undermine a lot of hard work when it it is. Don’t panic, this is why we budget, to ensure that unexpected expense is covered. Note the expense in your revised budget, and you can be sure you won’t have to worry about it again.

    You get a pay raise: Add it into your budget, but aim to invest the raise in your savings or debt repayment. You’ll be amazed at how quickly your finances improve, and how budgets can enable you to live within your means.

    If you have tidied your budget up, and managing to make headway with savings, it is a good time to take stock of what your credit file says about you. Before you apply for a home loan, check that your credit report is accurate and up to date. Each year you are entitled to a free annual credit report – and if you haven’t ordered one this year, you should.

    You can request a free credit report through Australia’s credit reporting agencies such as Veda Advantage, Dun & Bradstreet or Tasmanian Collection Services. You may need to contact all of these agencies. A report will be mailed to you within 10 working days. If it’s urgent you can request one quicker for a fee.

    Check that everything reads correctly. If there’s anything you’re not sure about – particularly credit listings which might hold you back from obtaining credit, address them with your Credit Provider before you apply for credit.

    To get help to make a case to dispute your credit listing, you can contact a credit repairer. Click here for more advice on this.

    Image: patpitchaya/ www.FreeDigitalPhotos.net

  • Privacy Law Reform To-Do List: Privacy Awareness Week 2013

    privacy law reform to do listIn our last post for Privacy Awareness Week 2013, we set out some actions you can take now for your family to get you up to speed and ready for important changes to the Privacy Act 1988 (Cth) which will impact you. We include the specific things you can to do to support your ability to obtain credit and have your credit file looking its best when changes come into effect on March 2014.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    PrivacyWeek-Banners-R1 - 2013-3

    What can you do to support your credit file and ensure you look your best to Credit Providers? It will be essential from now and going forward to be mindful of what may constitute bad credit. Although as a consumer you are not privy to your credit ‘rating’ score, a Credit Provider will be provided with a number based on your credit habits – and this will be used to help calculate your credit worthiness. Whilst it is not disclosed by credit reporting agencies the specific items which lower your score and how much by, traditionally there are some things you can do to which will help keep your credit-worthiness in check. We look at good credit habits, and what things you need to do when our Privacy Laws change in March 2014:

    1. Pay on time, every time.

    Your repayment history information is being collected now. It is imperative you make repayments on accounts by their due date to avoid having late payment notations recorded on your credit file and shown after the March 2014 implementation.

    If you can’t pay on time, seek alternative arrangements with your lender – but be advised these new arrangements will be recorded on your credit file. This would always be preferable to a default listing though – especially if you can show good repayment history at those new terms – so there is a new incentive to get in and work it out with your lender prior to letting your accounts go into arrears and copping a default listing.

    2. Check your credit file regularly.

    Make a habit of checking your credit file regularly. You can do this for free annually through the Australia’s credit reporting agencies. There will be five new data sets of information available to Credit Providers who request a copy of your credit report. These will be:

    – repayment history information;

    – the date on which a credit account was opened;

    – the date on which a credit account was closed;

    – the type of credit account opened; – and the current limit of each open credit account.

    It is essential that you take responsibility for the accuracy of your credit file information and even more so when the above new sets of information becomes available to Credit Providers.

    3. Correct credit information which you believe is inaccurate, inconsistent or unfair.

    If there is anything on your credit report which you believe rings untrue, or shouldn’t be there, you have the right to request this information be rectified. You will need to contact your Credit Provider to alter this information. You should do this before the information has any bearing on a credit application you may make in the future. You may contact a credit repair company to assist you with this if the change is a significant one, or if you expect resistance to the request. After March 2014, if your Credit Provider disagrees with your request to correct your credit information, you can have your dispute noted on your credit file and this would be worthwhile requesting if you believe your listing shouldn’t be there.

    4. Take precautions when applying for credit.

    You may not realise, but the volume of credit you apply for and the type of credit you apply for can hinder any future credit application you may make. Whilst it is a great idea to research credit before applying – you should only ever make a credit application you have full intention of pursuing. Too many credit applications will mean you are refused credit. And from March 2014 this will be clearly displayed on your credit report. Likewise, if you apply for too many ‘high interest’ or ‘bad credit’ loans – you could be penalised with a lender if you apply for a mortgage – especially with a credit ‘scoring’ method which may shave points off your score through this type of credit application.

    5. Seek cautions credit limits.

    You may have a credit limit of $10,000 – but only have used a quarter of that. This may not be to your advantage. If you’re not using it, don’t have it is the general adage. If you take out a credit card or other line of credit, it’s probably not wise to opt for a lofty limit. You could try to get it closer to what you intend to use. A Credit Provider will only see the credit limit and not the actual amount you have utilised on that limit. As with credit applications, any credit ‘score’ may be reduced by credit limits which are too high.

    6. Make information security paramount.

    Understand how lucrative your personal information can be in the wrong hands, and take steps to keep abreast of how it can be at risk from things like identity theft. Identity theft can lead to the stealing of credit through the fraudsters accessing your credit file. Victims can end up with defaults on their credit file and a ban on obtaining credit for 5 years. The Office of the Information Commissioner (OAIC)’s factsheet Ten Steps To Protect Your Personal Information gives you some guidance on how to do that. New laws will allow you to place a ban period on your credit information if you believe you may be at risk of identity theft, which can prevent fraudsters from accessing credit in your name – so if you do feel you may be at risk – acting quickly may save your credit file from misuse.

    Image 1: Rawich/ www.FreeDigitalPhotos.net

    Banner: Courtesy of OAIC