EMC Insurance has rolled out a new type of insurance designed to protect small and midsize businesses from hackers and identity thieves.

The policies cover the cost of notifying individuals whose data has been compromised, the potential cost of defending the company if there’s a lawsuit, and identity recovery for key people within the business, among other things.

Responding to a data breach is surprisingly cumbersome and expensive, the company said. In fact, notification alone is estimated to cost approximately $100 per affected individual, EMC said.

EMC is one of the first companies to offer this type of policy. the product became available on Feb. 1. Officials at the Iowa Insurance Commission aren’t sure how many other companies offer this type of insurance in Iowa, though experts in the industry expect the cyber insurance business to boom in coming months.

“We developed this innovative coverage to meet our insured’s most relevant needs,” said Mick Lovell, EMC’s vice president of business development. “In the event of a personal data breach, we provide those affected with assistance and recovery on all fronts, including a toll-free help line, credit monitoring and identity restoration case management. Coverage this thorough is still rare, and we’re enthused to offer it to our policyholders.”

The coverage is available in Iowa and about 40 other states.

EMC is among the top 60 insurance organizations in the country, based on written premium, and has assets of approximately $3 billion and more than 2,100 employees, roughly 1,100 of whom work in Des Moines.

Tags: Business, cyber, EMC Insurance, hackers, identity recovery, theft

Article Sources: EMC rolls out identity theft insurance for small businesses

It’s not just that you’ll need good credit to get decent rates when you’re ready to buy a home or a car. Your credit history can determine whether you get a good job, a decent apartment or reasonable rates on insurance. one seemingly minor misstep — a late payment, maxing out your credit cards, applying for too much credit at once — can haunt you for years.If you’re just starting out, you have a once-in-a-lifetime opportunity to build a credit history the right way. Here’s what to do, and what to avoid.

Check Your Credit Report

You’ll first want to see what, if anything, lenders are saying about you. that kind of information is contained in your credit report at each of the three major bureaus: Equifax, Experian and Trans Union. By mid-2005 you should be able to get one report per year from each of these bureaus for free; until then, the cost is generally between $8 and $9 each.Credit reports are used to create your credit score, the three-digit number lenders typically use to gauge your creditworthiness. Lenders also may look at the report itself, as may the landlords, employers and insurance companies who use credit to evaluate applicants.

Can you have a credit report if you’ve never had credit? Maybe.

Somebody else’s information could be mixed in with your report, either through a credit bureau mistake or because of identity theft; i.e. someone using your personal information to open bogus accounts.

If that’s happened to you, you’ll need to clean up your credit report before trying to apply for new accounts. The Federal Trade Commission has information that can help.

Establish Checking and Savings AccountsHere’s a basic step that’s sometimes overlooked by people seeking credit. Lenders see these accounts as signs of stability.

Opening checking and savings account is also one of the few things you can do as a minor to start building a financial history. while you can’t get a credit card in your own name until you’re 18 and can be legally held to a contract, many banks have no problem letting you open an account.

Many, but not all. If your bank balks, you need to either look around for another bank or consider opening a joint account with an adult.

Understand the Basics Of Credit Scoring

For information on how credit scoring works, read “Beef up your credit score in 5 steps.” For now, though, you need to know that the two most important factors in your score are:

• Whether you pay your bills on time.
• How much of your available credit you actually use.

It’s essential that you pay all your bills on time, all the time. Set up automatic payments or reminder systems so that you’re never, ever late. All it takes is a single missed payment to trash your credit score — and it can take seven years for the effects to completely disappear.

You also don’t want to max out any of your credit cards, or even get close. Keeping your credit use to less than 30% of your credit limits will help you get the best possible credit score — and should help keep you from getting over your head in debt, as well.

Finally, you don’t need to carry a balance on a credit card to have a good credit score. Paying your bill off in full is the best way to keep your finances in shape and build your credit at the same time.

Piggyback On Someone Else’s Good Credit

The fastest way to establish a credit history can be to “borrow” another’s record, either by being added to a credit card as an “authorized” or joint user or by getting someone to co-sign a loan for you.Having a co-signer can allow you to qualify for loans you might not otherwise get. the loan will show up on your credit report and, if you pay it off responsibly, will help boost your credit score.If you default, however, you won’t be the only one who suffers. the co-signer has basically promised to make good on this account, so any delinquencies will show up on her credit report as well.

Being added as an “authorized user” has its risks, as well, for you as well as the person giving you access to the card.

If your father makes you an authorized user of his credit card, for example, his history with that account can be imported to your credit bureau file, giving you an instant credit record. If he has handled the account well, that reflects well on you. But if he hasn’t, his mistakes would also become yours. any late payments or other problems could make it harder for you to get future credit than if you’d established your history without help.

Even if you trust the person adding you to the card, you may not be able to piggyback on his or her credit. Some credit issuers won’t report authorized users to the credit bureaus, particularly if the user is not married to the original card holder. If the point is to give you a credit history, the person who’s adding you as an authorized user should call the issuer and ask how (or if) your status as a user will be reported.

Apply For Credit while You’re a College Student

Credit experts used to warn college students away from those booths set up on campus by credit card lenders — the ones that promise free stuff for signing up. It turns out, however, that there’s no easier time to get a card than while you’re a college student, said Gerri Detweiler, author of “The Ultimate Credit Handbook.” Lenders are willing to take risks with you that they won’t once you graduate, probably because they know that your parents’ willingness to bail you out will end once you get your sheepskin.

You still have to exercise some caution, though. look for a card with a low or nonexistent annual fee and low interest rates. For now, just get one: Opening a slew of credit accounts in a short period of time can make you look like a risky customer.

Apply For a Secured Credit Card

If you can’t get a regular credit card, apply for the secured version. These require you to deposit money with a lender; your credit limit is usually equal to the deposit.

You’ll want to screen your card issuer carefully. To be frank, there are a lot of bad guys in this particular niche of the credit world. Some charge outrageous application or annual fees and punitively high interest rates.

Your credit union, if you have one, is a good place to start looking for a secured card. You can also check Bankrate.com’s list of secured credit card issuers.

Ideally, the card you pick would:

• Have no application fee and a low annual fee
• Convert to a regular, unsecured credit card after 12 to 18 months of on-time payments
• Be reported to all three credit bureaus.

If the issuer doesn’t report to the credit bureaus, the card won’t help build your credit history.

Get a Finance Company Card

Gas companies and department stores that issue charge cards typically use finance companies, rather than major banks, to handle the transactions. These cards don’t do as much for your credit score as a bankcard (Visa, MasterCard, Discover, etc.), but they’re usually easier to get.

Again, don’t go overboard. one or two of these cards is enough. If you get many more, you may find that later in your life these accounts could prevent you from getting the highest possible credit score. That’s not a reason to avoid them completely, because right now they’ll do you some good. just don’t apply for half a dozen.

Get an Installment Loan

To get the best credit score, you need a mix of different credit types including revolving accounts (credit cards, lines of credit) and installment accounts (auto loans, personal loans, mortgages).

Once you’ve had and used plastic responsibly for a year or so, consider applying for a small installment loan from your credit union or bank. Keeping the duration short — no more than a year or two — will help you build credit while limiting the amount of interest you pay.

Use Revolving Accounts Lightly But Regularly

For a credit score to be generated, you have to have had credit for at least six months, with at least one of your accounts updated in the past six months.

Using your cards regularly should ensure that your report is updated regularly. It also will keep the lender interested in you as a customer. If you get a credit card and never use it, the issuer could cancel the account.

Just remember the credit tips mentioned earlier:

• Don’t charge more than 30% of the card’s limit.
• Don’t charge more than you can pay off in a month. as mentioned earlier, you don’t have to pay interest on a credit card to get a good credit score, and it’s a smart financial habit to pay off your credit cards in full each month.
• Make sure you pay the bill, and all your other bills, on time.

is author of the upcoming book, “Your Credit Score: how to Fix, Protect and Improve the 3-Digit Number that Shapes Your Financial Future” (October 2004, Prentice Hall). she is a personal finance columnist for MSN Money and author of the question-and-answer column “Money Talk,” which appears in newspapers throughout the country. formerly a personal finance writer for the Los Angeles Times, Pulliam Weston is a graduate of the certified financial planner-training program at University of California, Irvine. she lives in Los Angeles with her husband and daughter. she enjoys hearing from readers, but regrets that she cannot respond to every email because of the volume of mail she receives. Mail Liz Pulliam Weston.

Liz Pulliam Weston’s column appears every Monday and Thursday, exclusively on MSN Money. she also answers reader questions in the Your Money message board.

Article Sources: Establishing a Good Credit History Has Never Been as Important as it is Today

Things to consider when Choosing a Finance Software for Personal Use

Many have found that the use of personal finance software is not complicated in fact it’s quite useful for tracking your household budget. however, there are some programs that are better than other ones so be careful as you choose the one that does everything you need it to do. you can choose between simpler and more advanced programs, software you download or web-based, and programs that are able to keep track of your investments. In this article we’ll be taking a look at some personal finance software programs and ways to choose the best one for you.

You can get many free trial offers from these software companies. If you haven’t used the program you are considering this is an advantage you’ll want to use for sure.

While you may not have access to all of the features with the free trial, it will still give you a good taste of what it’s like. The basic setup and ease of use are two considerations you’ll have access to in the free period. Looking for this free trial is the best way to know for sure if the program you choose is right for you without having to purchase it first. Compelling stuff, we think – what are your thoughts? you may already have guessed that personal injury attorney michiganmichigan accident lawyer is a large field with much to discover. you can find there is much in common with topical areas closely resembling this one.

You never really know about any one aspect because there are a lot of varied situations. it is always a good idea to determine what your circumstances call for, and then go from that point. you have a solid base of a few essential points, and we will make that much stronger for you as follows. Microsoft Money Plus is one of the best known personal finance programs, but it’s been discontinued. It’s significant for you to recognize this, as you can still buy it from some Internet suppliers, although Microsoft will be discontinuing their support for it in early 2011. To make up for it, Microsoft will now offer a free program which is downloadable, called Money Plus Sunset Deluxe. This new program will have the ability to run on any Windows application and doesn’t entail any activation, but there are no online services or aids with it. So if you’re on the lookout for free personal finance software with some valuable qualities, you should try out Microsoft Plus Sunset Deluxe, yet if you desire to get a program that has full support you should consider one that you have to buy, for instance Quicken or YNAB.

A simple choice for a robust budgeting and money management software is Quicken Starter Edition 2011. If you are looking to gain control over your personal finances then this software, designed by Quicken one of the best known names in financial software, then this is the edition for you. Easily organize your household budget with this software by tracking your bank accounts and credit cards. If you have problems with bill dates going past without the bill getting paid then you will like the due date reminders for this software. at the end of the year simply link up your system with Turbo Tax and file your taxes. with its guided setup feature Quicken Starter Edition 2011 is designed to be simple to use. however, if you need something more advanced they also have Quicken Deluxe 2011.

You now have many choices when it comes to personal finance software. these software are mostly made for average people, so they’re not hard to figure out or understand. You’ll find that it’s easier to track your budget and finances if you regularly use one of these software programs. The awesome Kimberli J Bomia is a phenomenal composer.

Article Sources: Personal Finance Software -Which One is Best?

DARIEN, Ill., Feb. 20, 2012 /PRNewswire via COMTEX/ –Life Quotes, Inc. wants to remind consumers that a little-known side benefit of the dreaded life insurance exam is that it might uncover health problems that you didn’t even know were there. It’s possible that the simple life insurance paramedical examination can provide much more than financial protection.

Life insurance is typically used to protect loved ones from financial devastation in the event of a death, but in a number of cases, the lab results of a routine checkup uncovered something far more sinister–a serious illness that the policyholder was not aware they had, which ultimately saved their life.

“It’s quite common for the lab results of routine life insurance exams to reveal potentially life-threatening illnesses,” says Robert Bland, CEO and founder of Life Quotes, Inc. “Surprising illnesses or conditions are revealed most frequently among adult applicants who have gotten out of the habit of having annual physical checkups. this then puts the life insurance agent into the role of bearer of bad news. Understandably, the reaction upon receiving such news is first denial, then anger at us for bearing the bad news and then appreciation for having uncovered potential problems before they become life-threatening. It’s amazing what kinds of problems a $30 comprehensive blood count test can reveal, which is why we always urge our customers to obtain regular annual checkups, in part so that their families don’t have to use the life insurance policy in the drawer.”

Life Quotes, Inc. gathered several personal stories provided by individuals whose lives were changed when they applied for life insurance.

in 1991, NBA All-Star Earvin “Magic” Johnson was diagnosed with HIV after a routine life insurance examination. since then, Johnson has dedicated his life to promoting awareness about the deadly disease.

Dr. Joan Schaefer, chief medical officer of Nebraska’s Health and Human Services System, learned she was in the early stages of a rare developmental liver disease called congenital hepatic fibrosis due to the lab results of a simple life insurance medical exam. at the time of the discovery, she had otherwise believed she was healthy and was in the middle of training for a marathon. in 2008, Schaefer underwent an emergency liver transplant to correct the condition.

from a paramedical examiner’s standpoint, it is very common to come across a client who did not know there was a problem with their health until they saw the results of the examination.

“This is fairly commonplace, we don’t know every instance where this happens at a given moment, but we draw blood and ship the blood to the lab and are often privy to those results,” said James Fritz, President and Chief Operating Officer for APPS Paramedical Services in Jericho, N.Y. “An examiner may find an abnormal reading on an electrocardiogram or their blood pressure is extremely high or low and they realize something has happened and encourage the person to contact a medical professional saving the applicant from a significant episode or serious medical condition. this may not be publicly recognized, but it is a reality and it does uncover significant illnesses that do save peoples lives.”

According to Kim Anderson, Senior Vice President of Examination Management Services, Inc. (EMSI) her examiners see an applicant with a critical health risk at least twice a year.

“This is often presented to us during the exam. Examiners are trained to know what to look for and if they see something that is out of the ordinary they know they are to inform the applicant and recommend they seek immediate medical attention,” Anderson said.

Although examiners cannot diagnose or offer medical advice about a certain illness, they can refer applicants to medical specialists for further review. and often the insurance agent informs the applicant that the exam revealed a serious illness.

“I had an applicant who thought he was in perfect health and when I told him that the examination showed that he had Type 2 diabetes, at first he didn’t believe me,” said Margaret Thornton, New Business Director at Life Quotes, Inc. “I strongly recommended that he make an appointment with his doctor as soon as possible, especially since he was planning a trip overseas that year.”

Shortly after an examination revealed that a new applicant had diabetes, Thornton was contacted again by a life insurance examiner who told her another recent applicant had a “stroke-level” blood pressure reading. The applicant was encouraged to contact her physician.

if it is found that you have a serious illness after a paramedical examination, the life insurance company may instill a waiting period based on the type of illness and the severity of the condition.

in the case of dangerously high blood pressure, the waiting period will likely be a year to make for certain the individual has the condition under control, but the policy could still be rated or declined depending on the outcome of the actual diagnosis and treatment.

“Bottom line, it doesn’t happen everyday, but it definitely happens and often these health problems are found from testing that is done at a low cost and in some cases absolutely free of charge to the applicant,” Thornton said.

Life Quotes, Inc. suggests contacting your health care provider immediately and making an appointment if a serious health condition is found in your test results.

for more, see “When Life Insurance Saves Lives” lifequotes.com/articles/lifeinsurance/when-life-insurance-saves-lives/

if you have a serious medical condition and have the need to shop for life insurance, Life Quotes, Inc. recommends the following to increase your chances of passing the examination and getting a better rate on life insurance.

Expedite the application process by submitting doctor letters or medical records to your insurance agent before taking the exam

Make sure you are properly hydrated

Avoid fatty foods for two days prior to taking the examination

Abstain from alcohol for 72 hours prior to the exam

Don’t take ibuprofen or aspirin prior to taking the exam since this will elevate your liver function

for more tips about taking paramedical examinations, see “Nine Things To consider Before taking a Paramedical Exam” lifequotes.com/articles/lifeinsurance/nine-things-to-consider-before-taking-a-paramedical-exam/

about Life Quotes, Inc.

Originally founded in 1984, Life Quotes, Inc. owns and operates a comprehensive consumer information service and companion insurance brokerage service that caters to the needs of self-directed insurance shoppers. Visitors to the Company’s Web site lifequotes.com , are able to obtain instant life insurance quotes from 30 leading life insurance companies and have the freedom to buy from any company shown.

SOURCE Life Quotes, Inc.

Copyright (C) 2012 PR Newswire. All rights reserved

Article Sources: How a Routine Life Insurance Examination Can Save Your Life

What’s more mysterious than love? How about personal finance? In honor of Valentine’s Day, here’s a look at some common myths about marriage and money.

Myth 1: Marriage will increase my tax bill.

Nice try, Cold Feet Charlie (or Charlotte) but it’s probably not true. In addition to reducing tax rates, the 2001 Bush tax cuts doubled the standard deduction for joint filers. The legislation also doubled the tax brackets for married couples in the 10% and 15% tax brackets. The 2010 Tax Relief Act extended the tax cuts for two years.

Even before the Bush tax cuts, slightly more than half of couples enjoyed a “marriage bonus” — they paid less in taxes as a married couple than they would have paid had they stayed single, says a 1996 report by the Congressional Budget Office.

Couples in higher-income brackets may still face a marriage penalty, says tax publisher CCH. for example, if both spouses had taxable income of $75,000, their combined income would push them from the 25% tax bracket into the 28%. The extra taxes on the portion of income that would be taxed at 28% would lead to a marriage penalty of about $300.

Still, that’s not a steep price to pay when you consider some of the other tax benefits that high-income married couples enjoy. for example, when one spouse dies, the survivor is exempt from estate taxes. (Same-sex couples aren’t eligible for this exemption — and many other federal tax breaks — even if they live in a state that recognizes gay marriage.)

Myth 2: My future spouse and I can lower our tax bill by filing separate tax returns.

Unfortunately, that’s usually not the case, says Tim Dilworth, an enrolled agent in Howell, Mich. Married couples are ineligible for a long list of tax credits and deductions if they file separately, Dilworth says. Filing separate tax returns is particularly disadvantageous if you have children, because you’ll be prohibited from claiming a multitude of family-friendly tax breaks, including the Earned Income Tax Credit, the child care tax credit and education credits.

Even if you’re childless, filing separately will reduce deductions for IRA contributions and cut in half what you can deduct for investment losses, Dilworth says.

Myth 3: I don’t have to worry about being held liable for my spouse’s tax misdeeds.

When you sign a joint tax return, you assume “joint and several liability” for the information on the return. That means the IRS could come after you for unpaid taxes, interest and penalties, even if you didn’t prepare the return.

The IRS does grant “innocent spouse” relief to spouses who can prove they were unaware of their spouse’s tax transgressions when they signed a joint tax return. But the bar for obtaining this relief is high. you have to convince the IRS that you didn’t know and had no reason to know your spouse was cheating, and that you didn’t benefit from your spouse’s wrongdoing.

If you believe your spouse is a tax scofflaw, file a separate tax return. You’ll probably end up paying higher taxes, but it will save you a lot of grief.

Myth 4: Getting married could help (or hurt) my credit score.

Your credit scores don’t get merged when you get married, says Kenneth Lin, CEO of Credit Karma, a consumer website. The credit reporting bureaus maintain credit reports on individuals, not households. But joint accounts could affect your credit score, because the history of those accounts will be reported on both spouse’s credit reports.

Myth 5: as long as we keep our finances separate, I don’t have to worry about my spouse’s credit.

Not necessarily. If you apply for a mortgage or any other joint account, the lender will look at both spouses’ credit reports from all three credit bureaus. And a spouse’s tarnished credit could be a sign of poor financial habits that could jeopardize a marriage. for that reason, credit counselors recommend swapping credit reports before wedding rings.

Reviewing each other’s credit report is about as romantic as cleaning the garage, but it can also be illuminating. (“A $5,000 balance at Victoria’s Secret? Explain.”) you can order free credit reports at annualcreditreport.com.

Article Sources: Getting hitched? Don’t fall for money myths

by David Voreacos

Feb. 3 (Bloomberg) — Wegelin & Co., the 270-year-old private bank, became the first Swiss lender to face criminal charges in a broadening U.S. crackdown on offshore firms suspected of helping Americans evade taxes.

Wegelin helped Americans hide more than $1.2 billion in assets and evade U.S. taxes, according to an indictment filed yesterday in federal court in New York. the new charges expand on earlier ones filed Jan. 3 against three bankers at Wegelin’s Zurich branch accused of conspiring to help U.S. clients cheat on their taxes.

Prosecutors said that from 2002 to 2011, more than 100 U.S. taxpayers conspired with Wegelin, the three Zurich bankers — Michael Berlinka, Urs Frei and Roger Keller — and others. the bank held more than $1.2 billion in assets not declared to the Internal Revenue Service, according to the indictment.

“Wegelin Bank aided and abetted U.S. taxpayers who were in flagrant violation of the tax code,” Manhattan U.S. Attorney Preet Bharara said in a statement.

the U.S. and Switzerland are in talks to resolve a U.S. probe of offshore tax evasion. Wegelin was one of at least 11 banks under criminal investigation by the Justice Department’s tax division.

Wegelin announced on Jan. 27 that it agreed to a sale to Switzerland’s Raiffeisen Group.

Bryan Skarlatos, a tax attorney in New York, said the indictment is an important step because it demonstrates the government’s willingness to indict a foreign bank.

“the indictment shows that the U.S. government will indict a Swiss bank if they don’t get cooperation,” said Skarlatos of Kostelanetz & Fink LLP. “It’s symbolic in that the United States is saying that if a Swiss bank doesn’t cooperate, it will be indicted. It puts pressure on other Swiss banks to cooperate.”

Federal authorities yesterday also seized $16 million in Wegelin’s correspondent bank account in the U.S. at UBS AG.

Richard Strassberg, a lawyer who represents the bank in the U.S., declined to comment.

Prosecutors said that Wegelin and the three bankers wooed U.S. clients fleeing UBS, the largest Swiss bank. UBS avoided U.S. prosecution in 2009 by admitting it aided tax evasion, paying $780 million and handing over data on 250 accounts. It later disclosed information on about 4,450 more accounts.

by attracting clients leaving UBS, Wegelin “opened new undeclared accounts for at least 70 U.S. taxpayers,” according to the indictment. the effort to woo UBS clients was backed by Wegelin’s senior management, according to the indictment. Wegelin bankers emphasized that because it had no offices in the U.S., it wasn’t subject to law enforcement pressure there, prosecutors said.

Phil West, a former international tax counsel at the Treasury Department, said it was “unfortunate” that the Justice Department and Wegelin couldn’t reach an agreement short of indictment.

“the Justice Department alleged that Switzerland’s oldest bank had tried to capitalize on the misfortunes of UBS and attract the clients UBS was rejecting, and assisting them in doing just what UBS was accused of doing,” West said in an e- mail. “if true, this would have made any resolution short of indictment very difficult.”

In its Jan. 27 announcement, Wegelin, based in St. Gallen, Switzerland, said its U.S. business, and the risks and responsibilities that go with it, will remain with the current partners. Wegelin, which describes itself as the oldest Swiss bank, didn’t disclose the sale price.

Credit Suisse AG, the second-largest Swiss bank, said July 15 that it was a target of a criminal probe by the Department of Justice over former cross-border private-banking services to U.S. customers. On July 21, seven Credit Suisse bankers were indicted on a charge of conspiring to help U.S. clients evade taxes through secret accounts.

the IRS has said 30,000 U.S. taxpayers with offshore accounts have avoided prosecution since 2009 by entering a limited amnesty program, paying back taxes and saying who helped them hide their accounts from authorities. Hundreds of taxpayers in the program have given information to prosecutors that has helped them build criminal cases against bankers and advisers.

the U.S. crackdown against offshore tax evasion has led to criminal charges against at least 21 foreign bankers, advisers and attorneys and at least 40 U.S. taxpayers.

the case is U.S. v. Berlinka, 12-cr-00002, U.S. District Court, Southern District of New York (Manhattan).

–Editors: Peter Blumberg, Michael Hytha

To contact the reporter on this story: David Voreacos in Newark at

To contact the editor responsible for this story: Michael Hytha at

Article Sources: Swiss Bank Wegelin Charged With Helping U.S. Clients Evade Taxes

“I’m Martha Coakley, and I’d love to get your signature for reelection,’’ she remembers telling him.

To which, she says, he replied: “I voted for Scott Brown, but you’re a good attorney general, and I’ll vote for you.’’

The exchange gave Coakley hope that if she could get that guy, she could get others and perhaps turn the page on her loss. “That’s what kept me going, that I got back out there and started campaigning again,’’ she says.

The hallway outside Coakley’s office is lined with portraits of former attorneys general, including Eddie McCormack, Edward Brooke, Elliot Richardson, and Scott Harshbarger. hers is the lone female face.

Inside her office is a framed saying her father gave her when she graduated from law school: “Sometimes the best man for the job is a woman.’’

Coakley was first elected to the job in 2006 and took office in January 2007, as the housing market was collapsing. Unlawful and deceptive loans and foreclosures became her mission, and that first year she sued banks to get relief for the 45,000 Massachusetts residents who had lost their homes.

In December she brought the first lawsuit in the country against the five major banks responsible for unlawful foreclosures against Massachusetts homeowners, including Bank of America. overall, her office has recovered more than $600 million in relief for investors and borrowers, helped keep 25,000 people in their homes, and returned nearly $60 million in taxpayer funds back to the Commonwealth.

Coakley had pulled out of a multi-state settlement because she “didn’t see a solution on the horizon.’’ though she recently signed on to the settlement, she continues to pursue additional relief for the state through her own lawsuit.

She hasn’t stopped there, now pressuring Fannie Mae and Freddie Mac to reduce loan principal payments for underwater mortgage holders and do more to prevent “unnecessary foreclosures.’’

Last month her office was named part of a federal-state task force to investigate the mortgage industry. In his State of the Union address, President Obama said the task force would consist of “the most aggressive’’ attorneys general on the issue.

In a recent speech before the Greater Boston Chamber of Commerce sponsored by Bank of America, Coakley stood at the podium, a large Bank of America logo behind her, and proceeded to lecture, politely, the room full of bankers.

“The banks got huge taxpayer relief, they have survived and are doing well,’’ she told them. “We need to even this out and move forward. I firmly believe that addressing the foreclosure crisis is the single most important thing we can do to restore a healthy economy.’’

Coakley also told them that for the first time ever, unfair mortgages constituted the single biggest complaint to her office last year, surpassing the usual top complaint-getter: automobile dealers. she quipped that, in the public view, this meant that bankers were below used car salesmen. (She added, diplomatically, that the public doesn’t love lawyers, either.) The audience laughed with her; it seems Coakley has learned something about working a crowd.

Article Sources: The fall and rise of Martha Coakley

Updated Friday, 9 a.m. Eastern

A security researcher has found a serious flaw in Google Wallet’s PIN protection that, in seconds, could enable an attacker to view everything in the owner’s digital wallet, including credit card numbers and transaction history.

Later on Thursday, another Google Wallet flaw came to light. A posting and video at The Smartphone Champ blog showed how to access the Google Prepaid Card balance on a secondhand or stolen phone.

Explained in a blog post and a video called “Google Wallet Cracker” by Joshua Rubin from the Web security firm Zvelo, the first glitch, which requires a “rooted” phone, concerns the four-digit PIN Google Wallet requires its account holders to enter in order to access and edit their information.

Google Wallet, which gives smartphones the ability, through near-field communication (NFC), to use their phones to pay for purchases in stores, sends encrypted data between the phone and the point-of-sale terminal.

To ensure the security of these mobile transactions, NFC requires the use of a Secure Element (SE), a device similar to a smart card, which stores the encrypted data, sent each time the smartphone interacts with a payment terminal.

That includes “the most sensitive data such as the complete credit card number,” Rubin wrote. SE access is “highly regulated, and it is designed to resist tampering, possibly even engaging in a self-destruct mechanism to protect its data,” said Rubin. “This is the core security layer of NFC payment systems.”

[What's wrong with Google Wallet?]

However, in order for customers to access their own SE, they must enter a four-digit PIN. It’s here where the problem lies; Google Wallet, currently available in the United States only on the Sprint Nexus S phone, stores a hash of the PIN, a hash Rubin and his colleagues were able to easily decipher using an app they created. (Verizon Wireless is not installing the Google Wallet app on its version of the Nexus S.)

“Knowing that the PIN can only be a 4-digit numeric value, it dawned on us that a brute-force attack would require calculating, at most, 10,000″ hashes, Rubin wrote. “This is trivial even on a platform as limited as a smartphone. Proving this hypothesis took little time.”

As a preventive measure, Google Wallet only allows for five invalid PIN entries before locking users out; Rubin’s app cracked the password without even a single failed attempt.

“This completely negates all of the security of this mobile phone payment system,” he said.

Exploiting this vulnerability is only possible, for now, on Android phones that have been rooted, meaning the owner has modified the operating system and has full access to the filesystem. In most cases, successfully cracking the PIN would require the attacker to have physical access to a target’s phone.

But, as Sophos’ Chester Wisniewski pointed out in a blog posting “Android phones are trivial to root.”

In an email to SecurityNewsDaily, a Google spokesperson said, “The Zvelo study was conducted on their own phone on which they disabled the security mechanisms that protect Google Wallet by rooting the device. to date, there is no known vulnerability that enables someone to take a consumer phone and gain root access while preserving any Wallet information such as the PIN.”

What Rubin found particuarly worrisome is that Google effectively has its hands tied when it comes to fixing the problem.

As Bill Ray from The Register explained, “The obvious way to fix this is to move all the data into the secure element on the phone. The secure element is essential to NFC transactions, but falls under the legal responsbility of the payment processor — so moving the PIN into there would change the already complex legal architecture.”

Rubin said he disclosed the vulnerability to Google, which was “extremely reponsive” to the issue, but, because of the tricky relationship between the customer, Google and the payment processors, it has not released a fixed version of Google Wallet yet.

In the meantime, Google urges Google Wallet customers to set up a screen lock on their phones and to not install Google Wallet on rooted devices. It’s also important to enable full disk encryption on your device and keep it up-to-date with the latest software.

The second exploit of Google Wallet is more limited but requires no rooting or technical skills.

The security bypass, which may have first been mentioned in December in a developers’ discussion forum, is simple: go into “Application Settings,” select “Google Wallet” and select “Clear Data.” that will wipe all user settings, including credit cards tied to the account.

Then go back to Applications, open Google Wallet and go through the setup process. It’ll ask you to input a new PIN, then to select a credit card and/or Google Prepaid Card. if you add the latter, you’ll find that the Google Prepaid Card balance from the old Google wallet account is added to the new account.

“The problem here is that since Google Wallet is tied to the device itself and not tied to your Google account,” wrote Hashim from The Smartphone Champ, “once they set the new PIN and log into the app, when they add the Google prepaid card it will add the card that is tied to that device.”

A casual thief who wanted to exploit this flaw would have to get through a passcode screen lock to get to the phone’s home screen, but not everyone enables a screen lock. Smarter thieves have ways of getting around screen locks, and buyers of secondhand phones might find a little surprise waiting for them when they set up Google Wallet.

SecurityNewsDaily has not heard back yet from Google regarding the issue. but in a statement to the tech blog The Verge, Google admitted the flaw existed, and that it had also set up a toll-free number for owners of lost or stolen phones.

“We strongly encourage anyone who loses or wants to sell or give away their phone to call Google Wallet support toll-free at 855-492-5538 to disable the prepaid card,” the statement read. “We are currently working on an automated fix as well that will be available soon. We also advise all Wallet users to set up a screen lock as an additional layer of protection for their phone.”

• The Top 10 Threats to Your Smartphone
• Password Overload: How can anyone Remember Them all?
• Top 10 best Smartphones

© 2012 SecurityNewsDaily. all rights reserved

Article Sources: Google Wallet flaws let attackers view card info

By Howard Mustoe and Gavin Finch

(Adds shares at close in fifth paragraph.)

Feb. 10 (Bloomberg) — Barclays Plc, the first of Britain’s biggest banks to report full-year earnings, cut bonuses at its investment banking unit by 32 percent after profit fell.

Net income for 2011 fell 16 percent to 3 billion pounds ($4.74 billion) from a year earlier, missing the 3.27 billion- pound median estimate of 11 analysts surveyed by Bloomberg. The bank raised its full-year dividend by 9 percent and said its investment banking unit made an “encouraging start” to the year. The shares climbed as much as 5.1 percent.

The lender today set a 65,000-pound limit on cash bonuses and cut remuneration for its top executives by almost half. The bank may still miss the 13 percent profitability target Chief Executive Officer Robert Diamond set a year ago. Return on equity fell to an “unacceptable” 6.6 percent in 2011, he said today. Barclays was the last British consumer bank to have kept its profitability target as Europe’s debt crisis and tougher regulation eroded investment-banking earnings.

“Diamond will have to once again lay out a road map on how he can improve returns,” said Christopher Wheeler, a London- based analyst at Mediobanca SpA who has an “outperform” rating on the stock. “Very encouragingly” the bank increased the dividend, he said.

Barclays gained 0.4 percent at 234.05 pence in London trading, for a market value of about 28.6 billion pounds. The bank increased its dividend to 6 pence a share. The company has declined 25 percent in the past year in London trading, compared with a 28 percent drop in the 43-member Bloomberg European Banks and Financial Services index.

“People were fearful initially on the suggestion they won’t get to the 13 percent return,” said Colin McLean, who helps manage about 700 million pounds of assets at SVM Asset Management ltd. “They will get there eventually.”

The London-based lender today also raised its cost-cutting target for next year to 2 billion pounds to bolster profit.

among the U.K. banks, Lloyds Banking Group Plc said in November it may not meet some of its medium-term financial targets until beyond 2014. HSBC Holdings Plc has said it will meet only the “softer end” of its 12 percent to 15 percent ROE target. Diamond said he isn’t cutting or abandoning his own probability target.

“The target remains 13 percent,” Diamond told reporters on a call today. “because of some of the external headwinds, we can’t be as convinced that 2013 will be the year.”

Pretax profit at Barclays Capital, the investment banking arm led by Rich Ricci and Jerry Del Missier, fell 32 percent to 2.97 billion pounds in 2011, the lender said in a statement. Revenue from fixed-income, currencies and commodities trading, which accounts for more than half the unit’s income, slid 52 percent in the fourth quarter. Revenue from equities tumbled 51 percent and investment banking declined 30 percent.

Total revenue at Barclays Capital in the fourth quarter declined 48 percent to 1.82 billion pounds. UBS AG, Switzerland’s biggest bank, this month said investment banking revenue dropped 36 percent to 1.8 billion francs ($2 billion). Credit Suisse Group AG yesterday said revenue at its securities unit fell 64 percent.

“Bob’s track record is unrivaled, but today is not his finest hour,” Ian Gordon, an analyst at Investec Bank Plc, said in a note to investors. Barclays Capital’s revenue was “very weak,” he wrote.

Barclays Capital set aside 47 percent of its income for remuneration in 2011, up from 43 percent in 2010. The unit reduced its 2011 bonus pool by 32 percent to 1.54 billion pounds and capped cash bonuses at 65,000 pounds.

The cash cap was “the right thing to do” because banks need to be “responsive to the public mood,” Diamond, 60, told reporters.

Annual pay for executive directors and the eight highest- paid senior executives will drop by 48 percent, Barclays said today.

Diamond declined to comment on his bonus this year after receiving a 6.5 million-pound award last year.

Goldman Sachs Group Inc. said last month profit fell 58 percent to $1.01 billion in the fourth quarter, while Deutsche Bank AG, Germany’s largest lender, said last week profit fell 76 percent as Europe’s debt crisis curbed trading and the company wrote down holdings.

Pretax profit from Barclays’s U.K. consumer division climbed 3 percent to 1.02 billion pounds. Losses as the corporate banking unit shrank by 89 percent to 70 million pounds. The company provided 43.6 billion pounds of gross new lending to British companies, exceeding its so-called Merlin lending targets agreed with the government last year.

The bank’s European consumer and business banking unit’s loss widened to 661 million pounds, from 139 million pounds as it took a 427 million-pound goodwill impairment on its Spanish unit and restructuring charges of 189 million pounds.

“we need to fix Europe,” Diamond said.

Barclays’s credit and bad-loan charges decreased to 3.8 billion pounds, from 5.67 billion pounds. it also wrote down its stake in BlackRock Inc. by 1.8 billion pounds and took a 1 billion-pound charge to compensate customers who were sold payment protection insurance.

–Editors: Jon Menon, Edward Evans.

To contact the reporter on this story: Howard Mustoe in London at .

To contact the editor responsible for this story: Edward Evans at

Article Sources: Barclays Cuts Bonuses at Investment Bank as Profit Shrinks

Now that the Greek disorderly default has been kicked down the street a little ways, current mortgage rates have risen sufficiently to move the best execution rate (the rate the received by the best qualified consumers) back to 4% after staying under that level for a full month.  Where to from here for mortgage rates?

Mortgage rates for refinance and purchase transactions move higher still if US economic growth continues and the US stock market continues its upward momentum.  The first factor seems probable based on recent economic reports, but the second potentially less so.  The US stock market is due for a pull-back according to many analysts who suggest that the market has moved too far, too fast. The cost of gasoline, expected by some observers to move well over $4 per gallon in the next few months could have a big impact on the US economy and, therefore, on mortgage rates.

Mortgage rates will move lower once again if unrest in the Syria threatens more widespread military action or if tensions between Iran and Israel boil over into conflict.  Moreover, if the Greek elections coming up in early April result in a renouncement of the bailout deal just completed, we could find ourselves right back to where we have been in the last several months.

In the US today only one economic report—existing home sales—is due for release.  Forecasts are for an increase in this measure of the housing market, providing further evidence that the market bottom for housing is in the rearview mirror.

Tomorrow’s weekly jobless claims report is the most important data of the week as it will indicate whether or not the employment picture is continuing to improve at a steady pace, or if the improvement has plateaued.

Today mortgage rates will likely be flat with some marginal price improvement possible based on early action in mortgage-backed securities trading.

Article Sources: Mortgage Rates: Back to 4%, Wednesday, February 22