1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Online Banking Take Charge of your Finances

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Online Banking In the year 2006, 63 million Americans reported that they used online banking 43% of internet users in the United States bank online

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Online Banking Online banking – also known as internet banking, allows consumers to complete transactions with wireless technology. Wireless technology includes: –Personal Computers (PCs) –Personal Digital Assistants (PDAs) –Cellular phones

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Online Banking Consumers can access account information and statements

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Online Banking Consumers can transfer funds

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Online Banking Consumers can manage bills and apply for credit

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Online Banking Advantages Decreased cost of paper and postage Storing all statements online instead of keeping a paper copy Convenience Paying bills online Ability to access account anytime No waiting for a monthly statement Disadvantages Not as personal Not able to access without technology Decrease in safety features Increase in risk for fraud

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Online Bill Payment Online bill payment – allows consumers to send money from one account to a vendor –Usually occurs automatically –Consumers need to check with the vendors regarding their policy of when the payment will be processed

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Online Bill Payment Examples of companies that use online bill payment include: –Retailer banks –Credit card companies –Insurance companies –Energy and utility companies –Health care –Transportation companies –Education expenses

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Online Bill Payment Occurs in two ways Consumer works directly with the depository institution to pay the company that is owed Consumer works directly with the company in which the money is owed

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Online Bill Payment Important financial aspects include: –Checking with the vendor or company to understand their policy of when transactions are complete –Confirming there are enough funds in the account to cover the expense of the bill –Confirming bill will be paid, money will be taken out of the account, and the transaction will be completed –Their financial information is secure and it is safe to make online transactions

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Determine Security The Uniform Resource Locator (URL) ends in “s” which stands for secure A closed lock to the right of the URL or in the bottom right hand corner of the web browser to indicate a secure site

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Insecure Practices accounts are not secure –Do not send important information such as: Social security numbers Bank account numbers PIN numbers

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Consumer Protection The Federal Bank of Chicago suggests the following: –Passwords are a combination of letters and numbers –Change passwords once a month –Keep all receipts and compare them to bank statements monthly –Log out of depository institution Web sites immediately after you finish working –Contact the depository institution directly with any questions or concerns

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Recurring Payment Recurring payment – bills are set to be paid on the due date or a previous date set by the consumer –Payment will happen automatically electronically Advantages of recurring payment include: –Save money on postage –Saves time for the consumer –Bills are paid on time

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Regulation E Regulation E – covers all electronic fund transfers including transfers occurring through an electronic terminal, computer, telephone, or magnetic tape –The transfer must be conducted with the purpose of authorizing a depository institution to debit or credit a consumer's account

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Consumer Protection Privacy Policy outlines how a consumer’s information will be used and protected Opting out of a financial policy allows a consumer to request a depository institution to share only a limited amount of personal information

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Identity theft is the fastest growing white-collar crime in US In 2009, Washington ranked 13 th in the nation with 4,942 residents reporting they were victims On the average, it takes 12 months before a person realizes they are a victim 80% of victims have no idea how their ID got into criminal hands The average victim spends a minimum of $1,500 and 40 hours to repair their credit Ed Neigel, Communications Consultant, Consumer Protection Division, Washington State Attorney General’s Office

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona What makes up your identity? Social Security number (also on Medicare cards and Military ID) Name or maiden names Date of birth Address Bank or credit card number Other identifying information such as account numbers/PIN numbers. Ed Neigel, Consumer Protection Division, Washington State Attorney General’s Office

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Giving Your SSN is Voluntary Ask questions. It’s your information: Why is the number needed? How will my number be used? What happens if I refuse? What law requires me to provide it? DECIDE what is best for you. Ed Neigel, Consumer Protection Division, Washington State Attorney General’s Office

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Internet Areas for ID theft Spam Phishing Online Shopping and Auctions Ed Neigel, Consumer Protection Division, Washington State Attorney General’s Office

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Spam Spam is unwanted and unsolicited . You’ve all received with erroneous subject lines such as “you’ve been approved”, “you’ve been accepted”, work from home, enhance your body, and of course “Get Rich Quick.” Ed Neigel, Consumer Protection Division, Washington State Attorney General’s Office

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona How to protect yourself Don’t respond to spam –They’ll have your . –You’ll probably get many more offers. –Do not use a preview pane for . Use the telephone: –Call the company if you suspect fraud to confirm requests for info. Ed Neigel, Consumer Protection Division, Washington State Attorney General’s Office

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona What is Phishing? Phishing: Online scammers pose as legitimate companies to get your confidential personal and financial information. Pharming: Being diverted to a fake or spoofed website. Ed Neigel, Consumer Protection Division, Washington State Attorney General’s Office

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona FTC Phishing Case

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Another Example of Phishing From: eBayeBay To: eBay CustomereBay Customer Sent: Tuesday, February 24, :53 AM Subject: A21 FPA NOTICE: possible account access by a third party Dear eBay member: We recently noticed one or more attempts to log in to your eBay account from a foreign IP address and we have reasons to believe that your account was hijacked by a third party without your authorization. If you recently accessed your account while traveling, the unusual log in attempts may have been initiated by you. However, if you are the rightful holder of the account, click on the link below, fill in the form and then submit as we try to verify your identity.

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona What they asked for on link eBay User ID, password, and addresses Full credit card information (number, expiration date, passwords, name of banking institution Banking (checking/savings) information including pin, account, and routing numbers User’s address, phone numbers, mother’s maiden name, DOB, driver’s license number If you provide any information – the spammers have you on the hook. Ed Neigel, Consumer Protection Division, Washington State Attorney General’s Office

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Best Practices for Safe Computing Protect your personal information. It’s valuable. Use anti-virus and anti-spyware software and a firewall and update them regularly. Protect your passwords. Download free software only from sites you know and trust. Don’t click on links inside pop-up windows. Don’t click on links in spam that claim to offer anti-spyware software or anything else. Ed Neigel, Consumer Protection Division, Washington State Attorney General’s Office

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Best Practices, cont. If you need to reach a business, call the number on your financial statements or credit cards, or type in the web address yourself. Be cautious about opening attachments or downloading files from s you receive. Don’t reply to or pop-up messages that ask for personal or financial information. Look for Get good contact information Avoid cash – use single credit card. Know where to go if it goes bad. Try to keep your business in U.S. Do your homework!! Ed Neigel, Consumer Protection Division, Washington State Attorney General’s Office

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Scams Ed Neigel, Consumer Protection Division, Washington State Attorney General’s Office

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1.7.6.G1 © Family Economics & Financial Education –March 2008 – Financial Institutions – Online Banking Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona