FRAUD - They Are Out To Get You!

Last month I wrote about fraud occurring through your cell phone and the dangers associated with answering that call from an unknown number. In this edition I want to focus on your other online activity with your Personal Computer, Online Banking, and all of those wonderful websites that you purchase items that you must have. Email fraud is another one of those attacks that often catch people off-guard. Spoofing of emails is a leading tool used by fraudsters and often leads to big losses for individuals. Here are three very common types of email spoofs: Display Name Spoofing: The attacker uses a trusted name with a different email address (e.g., "John Smith fakeaddress@example.com"). Domain Spoofing: The attacker forges the entire email to look like it’s coming from a legitimate domain (e.g., johnsmith@trustedcompany.com). Reply-to Spoofing: The attacker manipulates the "Reply-to" field to redirect responses to their email address. The simplest rule that I have learned to defeat email spoofing is to NEVER CLICK ANYTHING IN AN EMAIL SENT TO ME . For example, I make purchases at Amazon, Office Depot, Kohl’s and other online retailers, oftentimes, I receive confirmation from the retailer that I have made a purchase, and it includes a receipt. Many people assume that email is secure between themselves and the sender – in reality there are many programs running on the internet that are glancing at those messages and finding information. This little bit of information alerts the scammers that I do business with that company – and it also gives them my email address. So, about a couple of days later I receive an email from Customerservice@khls.com. If I’m not paying attention and only see the Kohl’s logo, I am inclined to click the link that they provided me to fix my recent purchase or to guide me to their site to steal my login information for my Kohl’s account. If you are speed reading this article – you likely missed the subtle change in the DOMAIN of the email that I received from khls.com, not kohls.com. I learned a long time ago, because I was a victim of fraud, that I no longer click any email links or open any email attachments from companies. I will simply go to the company website and login to my account in order to confirm the information that I’m being told is so very important. Remember, also, that the fraudsters rely upon rushing you into a rapid response to their email or phone message. IF YOU HURRY – YOU’LL BE SORRY… Let me give you a few quick suggestions on dealing with email and keeping yourself safe with your home computer. Use a Secure and Reputable Email Provider: Choose an email provider like Gmail, Outlook, or Yahoo that offers robust built-in security features, including SPF, DKIM, and DMARC protection. Enable Multi-Factor Authentication (MFA): Add an extra layer of security to your email account by enabling MFA. This requires a second verification step (like a text message or authentication app) to access your account. Recognize Spoofed Emails: Be cautious with emails that: a. Urge immediate action or sound too good to be true. b. Contain spelling errors or unusual language. c. Have suspicious links or attachments. d. Hover over links to see the actual URL before clicking. 4. Keep Your System Updated a. Regularly update your operating system, browser, and email client to protect against known vulnerabilities. b. Use antivirus software to scan for malware that may arrive via email attachments. If you follow the simple rules, you can avoid being taken advantage of by the myriads of scams that appear in your email Inbox on a daily basis – sometimes multiple times per day. Take some time to sign up for an ID Theft program to have an extra set of eyes for your online health. We offer a great product at Washington State Bank called ID Theftsmart – it is an inexpensive way to protect your financial life. There are many good companies that provide similar services, and I would strongly encourage you to take advantage of the offerings before you fall victim to identity theft or fraud. One last suggestion…use a Credit Card for all of your online activity. It adds one more layer of protection away from your personal banking accounts that are accessed via your debit card. There is much lower risk to your financial health in using a credit card for your purchases. All the best as you keep yourself safe from all of the bad actors out on the internet and your email inbox. Michael Herzog President

You may not think that my title goes along with a consistent thought pattern, after all, taxes are one of those normal life headaches that cost us money and typically, savings is something we are doing that provides a long-term benefit. But what if you could save money and reduce your taxes at the same time? Have you considered the tax-deferral available to you by utilizing an IRA? IRA accounts have been around for a long time, and yet, many of us don’t take the opportunity to fund this portion of savings that avoid the taxes that would be imposed upon that income you are setting aside for future use – in retirement. We have a couple of good options for your consideration. Washington State Bank offers these first two options to anyone who wishes to start or continue depositing dollars for retirement planning. Traditional IRA – every taxpayer in the United States has this option, even if you are covered by an employer 401k or other type of retirement program. There are limits to the amount you may contribute, and I would encourage you to speak with your tax preparer about those limits. Roth IRA – this is going to be after-tax dollars, so you don’t receive the immediate benefit, but since you have already paid taxes on these contributions, you will be able to withdraw those funds with very little tax consequences in the future. In most cases, the withdrawals will be tax free. Additionally, we have a partnership with NestEgg that allows you to access investment products that are typically offered in a brokerage with a discounted fee structure. These investments allow you to increase your potential return over the time that you are working toward retirement. Nest Egg is an online brokerage and they offer one on one service as well as the opportunity for you to make investment choices on your own. Let me give you an example of how much you might be saving over a 20-year time frame… For example, you decide that in 2024 you wanted to defer the full amount of $7,000 to an IRA account. And you commit to setting aside this amount each year going forward. $7,000 per year for the next 20 years. I am going to use a conservative 6.0% return on investment over the 20 years. (For this example, I am using the Future Value of Money Calculator at calculator.net) In 2024, you begin and at the end of the first year you have a total of $7,420.00. At year 5 you would have a total of $39,459.00 (while contributing $35,000) By year 10, your $70,000 investment would be worth $92,265.00. In year 20, compounding has almost doubled your investment of $140,000 to a total of 279,949.09. If you are young and can afford this $7,000 annual investment – according to this calculator, you would accumulate $1,000,000 in 39 years. So, if you are in your 30s today, by beginning this simple plan, you would have saved one million dollars by the time you are 70 years old! I think just about everyone would be excited about that number. Start small, finish big. The rules of compound interest are always the same. If you don’t have $7,000 today, start by adding to your IRA on a monthly basis – that would be about $600.00 per month. Maybe the first question is why am I not already doing this? Michael Herzog President