Costco Connection - August 2006

Hackers hitting

Also: ■ Bailout deals ■ Phone tax

Ask David

Horowitz

college records

COMPUTER SYSTEMS AT universities across the country are becoming favorite targets of hackers. Colleges account for the largest percentage of hacker hits: about 30 percent of computer security breaches reported last year, according to the consumer data-collecting firm ChoicePoint. (Ironically, ChoicePoint itself was a victim of a major security breach in 2005.)

Statistics show rising numbers of these problems, which have exposed personal information of thousands of students, alumni, employees and college applicants, including Social Security numbers and, in some cases, medical records. Since last January, at least 845,000 people have had sensitive information jeopardized in 29 security failures at colleges.

Authorities say hackers are realizing that col-lege-based computers hold many of the same types of records as banks, but they are much easier to break into and lift information from. One security expert said schools are targeted because hackers have found out operating budgets don’t make computer security a priority. This makes schools easy prey.

Unfortunately, according to one security official, “a university is fighting for every dollar to maintain a good education standard and it doesn’t necessarily allocate a security budget—at least not until it gets hit a couple times and causes major problems.”

It’s critical that universities allocate sufficient funds to protect their computer systems. Students, meanwhile, should take basic steps to protect their personal information. See the Identity Theft Resource Center, www.idtheftcenter.org, for tips on avoiding and responding to identity theft.

the property if the homeowner is eventually unable to buy back a home.

States fighting mortgage fraud

Illinois has a new law to protect homeowners from “bailout deals,” a type of mortgage fraud. It requires written details of services from mortgage bailout firms and gives homeowners more flexibility if they want to cancel an agreement. It goes into effect in January, and many other states are considering similar laws.

Homeowners who are struggling to make payments can opt for a bailout and transfer their house deed to a third party for a limited period of time. This supposedly allows them to get back on their feet financially and purchase the home back with a new mortgage. Unfortunately, many homeowners who thought they were temporarily signing over the title to their home are never able to get it back.

The new Illinois law allows the owner to cancel a bailout agreement up to five days after it is signed. If the deal is canceled, the owner will regain the title and any mortgage debt carried before the agreement. Additionally, rescue firms must pay the homeowner at least 82 percent of the fair market value of

WE BOUGHT a house 12
years ago. At the walk-
through, we realized it
didn’t have a driveway,
though the model did.
We bought it anyway,
because of the affordabil-
ity and the good neigh-
borhood. The community
association limits each
residence to two cars
unless the property has a
driveway. There are other
parking spaces available,
but they’re for visitors.
The city confirms that
the community is a “lim-
ited-parking commu-
nity.” When we moved in
my two kids were young,
but now they both drive.
We have four vehicles,
and they’ve been towed
several times. The asso-
ciation isn’t fair!
Domingo
Tustin, CA

DOMINGO, if
there were new
rules that you
didn’t agree to,
then you could
cry foul. But
you knew the
limit when you
moved in. It’s not the
association’s fault.
I suggest that you
propose to the associa-
tion that they convert
some of the visitors’
spaces to residence
parking, obtainable by
permit for a monthly fee.
Your other options are to
appeal to the city council
to rezone the community,
reduce the number of
cars parked at your home
to conform to the rules or
consider moving.

IRS to refund phone overcharges

Here’s a follow-up to a story that has been in the news recently about an obsolete tax that is finally being removed from current phone bills.

An obscure federal tax on long-distance calls was levied on wealthy phone users to help support the eight-month Spanish-American War in 1898, and it was never repealed. Over the years, the tax has trickled down to virtua lly all phone users.

However, according to federal regulators, anyone who has paid for long-distance or cellular phone service in the last three years is entitled to a refund. The size depends on the amount of calling. Those who regularly pay substantial bills for long-distance and cellular service may be eligible for a substantial check.

Phone users must file a refund claim with their 2006 federal income-tax return. The IRS is still determining how to calculate who is entitled to how much.

I suggest that you watch for more information as tax time gets closer. To learn more, go to www.IRS.gov. You might also start collecting receipts from long-distance phone calls you made from 2003 to 2006. C

AMY CAN TRELL

David Horowitz is a leading consumer advocate. His “Fight Back!” commentaries are heard daily on the Jones Radio Network. For stations and times, check the radio page at www.fightback.com.

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