Winston-Salem, NC--The season of joyous celebrations and gift-giving can quickly become unhealthy, and not just because of rich holiday food. According to the National Retail Federation, the average household has by now spent more than $830 to make spirits bright in the coming days.

Finding balance is as simple as the age-old saying: It’s the thought that counts.

Focusing on what is important, planning, and pausing along the way works wonders. And there’s no time like the present to make next year even better.

Holiday stress is real. From decorations, groceries, and gifts to traffic, houseguests, and the turkey timer, there are enough ways to get stretched thin. Added pressure on the pocketbook is sure to dampen festive feelings and linger well into 2023.

“Our emotions get so tied up in our money decisions that we often make poor choices as a result, especially when under stress,” says Lori Timm, community and financial wellbeing manager at Allegacy Federal Credit Union. “We may spend money to make ourselves feel better or equate the degree of our love for someone to the amount we spend on their gift.”

That can be particularly costly when resorting to credit, adding to existing debt. Rising interest rates will only make matters worse by expanding unpaid monthly balances. Instead of falling into temporary comfort in holiday overindulgence,

Timm suggests taking control in three simple ways.

• Talk about it.  Open communication on individual’s hopes for the holidays, budgets, and favorite past gifts brings clarity on priorities.
• Pause and plan.  It’s never too late for a mindful moment on gift options, paying off credit debt, and set the table for a comfortably festive 2023.
• Give meaningful gifts.  The most valued usually come from the heart. A family heirloom, shared experience, or “coupon book” for acts of service and affection cost little and will fill memories rather than closets.

In a season that can bring as much stress as joy, a bit of time and thought spent on financial wellbeing is an enduring one, too.

“We have a lot of control about our holiday spending. Be kind to yourself,” reminds Timm. “Take time to rest, eat right, and exercise. Feel empowered to say “no,” and keep your focus on the reason for the season.”

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After 30-plus years in Maryland, NC native Maxine Johnson returned to neighborly Granite Falls, joined Shuford FCU, and within three years achieved her lifelong dream of homeownership.

Granite Falls, NC -- Maxine Johnson moved to Granite Falls, NC four years ago already knowing it was home. In time, her relationship with Shuford Federal Credit Union and Branch Manager Brenda Ballou proved it’s also where the heart is.

Though her family had been in Maryland for thirty years, Maxine was born and raised in North Carolina. Excited to bring them back to her home state, she knew nothing of Granite Falls but met Ballou at church. Their bond and Ballou’s attention soon gave Maxine confidence to ask for something she and her husband had long wanted and would soon realize: her very own home.

“I never thought we would get it to be honest,” Johnson confides. “All my life I wanted to own my own home, yet no banks from Maryland or North Carolina would give my family the opportunity.”

Things in Granite Falls are different. The Shuford FCU branch stands at the sidewalk that passes a Shuford Mills location turned storage facility. Ballou greets each visitor warmly, and every day intends to help them achieve something they’ve wanted.

It’s with her encouragement and education that Johnson was ready to bloom right where she and her husband already were planted as renters, the owner ready to sell. The loan closed in October 2021 and the process was “easy,” she says. She knows that feeling comes from a special place.

“A credit union gives people more opportunity than the banks. They will go into depth on what to do to build credit, to give information on what we have, and it worked,” Johnson explains. “Most important, they will give someone a chance to fulfill their dream of purchasing a home, like they have done for us.”

The short walk Maxine makes from her home to the branch befits the neighborly connection she and the credit union have with Granite Falls. She loves the peace and quiet--and easy visits with her friend and financial partner right down the street.

“It’s a great feeling when you can help someone achieve a goal no matter if it’s a short- or long-term goal,” Ballou reflects. “I am so happy for her and her family, to see them achieve something they have wanted for so long.”

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Columbia, SC--With just weeks until the fall semester, students worried about the cost of higher education can take control by doing some early homework. The assignment: Thoughtful study of expenses based on objectives, needs, wants, an assessment of available resources, and from those a plan that simplifies on-campus decisions—a.k.a., a budget. Often, that means starting with the basics.

“One of the things we see a lot when a student is enrolling in college is that unless their high school had a class that taught budgeting—or any kind of finance, really—they don’t even know how to balance their debit account,” explains Matt Nichols, Columbia market executive for Founders Federal Credit Union, who with part-time student tellers anchored a partnership with the University of South Carolina seven years ago. He sees new students on their own for the first time make mistakes that earlier planning can curb.

“Freshmen who have never been on their own get money from mom and dad, grandparents, or financial aid, and time and again it’s gone,” Nichols reflects. “So just learning how to handle money and allocate amounts for necessities and so forth is the biggest thing.”

Put school—and its price—first.

Tuition and fees are clear, and college-provided aid has largely been determined. Students still have until June 30, 2023 to complete the Free Application for Federal Student Aid (FAFSA), and earlier is best. Should the first several weeks of class reveal greater need, North and South Carolina students can even apply on or after October 1 for state-level grants for the 2023-24 academic year.

Need is the operative word. Student loans are best used only for required tuition, fees, and housing. Beyond those, a handful of decisions can either grow college debt or keep it at bay.

Keep an eye on the big picture.

Following through on up-front investment with a successful semester depends on first meeting basic human needs of food, shelter, clothing, health, activity, and connection. The weight of college expenses can grow depending on how those needs are met.

Nichols says connecting with freshmen during twenty or so summer orientations helps answer questions about accounts and budgeting, prompting valuable conversations with parents.

“When they’re traveling back, mom and dad can say, ‘Alright, you heard what the people at the credit union said. Let’s focus on this over the next few weeks before you get to school.’”

One approach is to review priorities.

Curricula and materials are a given, but their prices are not. Estimate books and supplies from college guidance on annual costs, and ask for specifics from instructors and academic departments. Reduce cost further with used or borrowed books—any notes and highlights are a bonus—and sell them back to a bookstore or another student when the semester ends.

Feeding the body and mind is straightforward with meal plans, while campus cards or cash are more flexible. Balance convenience, choice, and cost, mindful of usage limitations and individual habits. Even a reasonable plan for “three squares” may be too much if the first meal is often lunch. Since local merchants may accept campus cards, beware the cost differences and temptation to overspend—and have a conversation about boundaries.

Rest and personal space are no-brainers when freshmen are required to live on campus, which can simplify transportation and other expenses. Where college properties, privatized residences, and off-campus abound and tout upgraded amenities, list their features and prices, including utilities, proximity to campus, transit time and cost, and how each option impacts food choices and costs.

Create a positive environment.

Other factors in student well-being vary widely from one to the next, and personal preference can quickly escalate costs.

Dressing for the occasion at minimum means comfort as temperatures fall and rise again. Otherwise, it is a matter of style, brand, and quantity. Sort current pieces to define a campus wardrobe and reveal specific needs before going shopping. Consider alternative sources, and be judicious about how much is enough. A student entertained by second-hand store finds can drain an account faster than one who is confident in the newer buys they already have.

Self-discovery and connection are foundational in college. Thoughtful investment in extracurricular activities, exercise, and shared interests pays off in wellness and self-esteem. Compare on-campus fitness facilities and gym memberships, especially if housing options dictate either choice. Greek life, clubs, and interest groups can be vital, so give them and their costs due attention.

Transportation and employment can offer further freedom. Yet gas, maintenance, and insurance costs may be cause to reconsider taking a car to campus. Estimate those against part-time employment opportunities that can offset academic or discretionary expenses. A walk or public transit preserves that income, and a commute may be worthwhile if pay is greater or the experience holds longer-term value.

Plan and execute…and keep it simple.

A budget framework can start with at-home spending on food, clothing, well-being, and transportation matched to those on-campus categories. Noting non-negotiables, eliminating non-essentials, and ranking the remainder helps pare down choices to those that can fit. Clarity found ahead of the school year provides valuable guidance for the innumerable new experiences ahead. And by Nichols’ account, it does not have to be complicated.

“We try to break it down as simple as possible with necessities and wants. What’s a necessity? Tuition, room and board, books, food, gas to travel if you need to. The wants are things like clothing, concert tickets, and things they want to take part in while they’re in school,” Nichols explains. “It’s their money and we can’t control it, but we at least want to provide that education so they’re being smart with it.”

Raleigh, NC and Columbia, SC—Nearly 2,600 learners in North and South Carolina are sharing $6.4 million in financial help for next-level knowledge and job skills through scholarships provided by the states’ not-for-profit credit unions, according to the Carolinas Credit Union Foundation, SECU Foundation, and independent data reported to the Carolinas Credit Union League.

Some 850 university and community-college students will have an extra $2,500 on average to apply to 2022-23 school year expenses. Another 1,740 of North Carolinians including the unemployed, underemployed, military veterans, or National Guard are eligible for $500 awards to pursue marketable job skills via community college workforce development or continuing education programs.

The vast majority qualify for the scholarships based on their membership in a credit union or being in the immediate family of a member. Otherwise, recipients are diverse in their pursuits, backgrounds, and needs.

“SECU Foundation established the People Helping People scholarship programs to assist students across North Carolina with their educational goals,” notes Laura Culverhouse, director of program administration for the SECU Foundation, which has provided more than $76 million in scholarships since it began awarding them in 2005.

“Recipients are selected by committees in the states 115 Local Education Agencies (school districts) and 58 Community Colleges. A key focus in the selection process is the students volunteerism and service in their local community. The selection committees know the students who truly represent the People Helping People philosophy that is so important to our credit union,” Culverhouse adds.

"Education is one of the four pillars of SECU Foundation’s purpose, and our scholarship program was the first initiative approved when the Foundation was created. It represents a worthy investment in our future leaders."

A few credit unions in each state manage their own scholarships, and eighteen others—twelve in North Carolina and six in South Carolina—work through the Carolinas Foundation to provide aid for local students. Last week, the Carolinas Foundation finalized $509,200 for 261 students heading into the fall semester, pushing total scholarships it has supported to 1,442 since 2016. Its application period for 2023-24 will open October 1, 2022.

All of the programs ask that applicants outline their academic achievements, school-based involvement, and commitment to community and volunteerism, and they invite optional background on financial need. In return, recipients are backed by financial cooperatives committed to bringing them the opportunities higher education provides.

“We are proud to assist our members working towards a college or university degree, and last year we increased our award amounts to help recipients supplement the rising costs associated with higher education,” explains Corey Brickers, senior vice president of marketing and corporate communication at Charlotte-based Carolinas Telco Federal Credit Union. “We believe in empowering our members with the tools and resources needed to reach their goals.”

For more on scholarships still available in 2022 and programs for 2023-24, visit the Carolinas Foundation Scholarship Resource Center, the SECU Foundation Scholarships page, and local credit unions. To find one, visit www.yourmoneyfurther.com.

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For nearly thirty years, the Carolinas Credit Union Foundation has served as a partner in philanthropy to credit unions, empowering and inspiring credit unions in the Carolinas through collaborative opportunities to enrich communities. It manages the scholarship funds of eighteen credit unions based in the Carolinas.  North Carolina: Acclaim FCU, Allegacy FCU, Blue Flame CU, Carolinas Telco FCU, Charlotte Metro FCU, Coastal CU, Greensboro Municipal FCU, LGFCU, Members CU, Piedmont Advantage CU, Summit CU, Truliant FCU  |  South Carolina: Carolina Foothills FCU, Greenville FCU, MTC FCU, Palmetto Citizens FCU, Sharonview FCU, SPC CU

The SECU Foundation promotes local and community development by primarily funding high impact projects in the areas of housing, education, healthcare and human services. It was chartered to identify and address community issues beyond the normal scope of State Employees’ Credit Union, and it established the “People Helping People®” scholarship program to assist students across North Carolina with their educational goals. The “People Helping People” scholarship program represents an annual commitment of over $5 million, with a collective total of over $76 million since the initial scholarship funding began in 2005.

Credit unions with self-managed scholarship programs include NC-based Champion CU, Mountain CU, and TCP FCU; and SC-based Carolina Trust FCU, Georgetown Kraft CU, SC Federal CU, and Spero Financial FCU.

The growing cost of the American Dream is clouding buyers’ visions of prosperity and stability, and long-term decisions today could mean trouble down the road.

What’s the catch? Record-high home prices, rising interest rates, and ongoing costs of ownership loom well after loan closing. Anyone looking to move this summer is wise to seek guidance from people focused on individuals’ best interests.

“Most (buyers) are quite apprehensive at everything that’s going on. Prices seem to be changing on an almost weekly basis. There’s this persistent scarcity of inventory,” says Louis Guillama, vice president of real estate operations at Raleigh-based Coastal Credit Union. “It really requires you to just go at everything at a moment’s notice and it doesn’t allow you a great deal of time to do some research on a pretty substantial offer.”

How much is too much?

Purchases start at price tags, and the median mortgage payment is rising. According to the Mortgage Bankers Association Purchase Application Payment Index (PAPI), it increased 8.8% from March to April 2022 and a cumulative 23.7% since January. Incomes are lagging, and consumers are stuck between swelling rents and scarce homes at ballooning prices. Some are committing significant up-front money to compete.

“If you get in a bidding war, take a deep breath and sit deep in your seat if you’re going above list price,” urges Allegacy Federal Credit Union Mortgage Loan Officer Bob Church, a 34-year lending veteran only recently seeing buyers risk thousands in due diligence fees, earnest money, and contractual promises to pay any difference above appraisals. “You have to be realistic about it. If you’re already $30,000 underwater, how long are you going to be in the house to recoup that? It takes years to pay down that amount of principal.”

“If you get in a bidding war, take a deep breath and sit deep in your seat if you’re going above list price.” Bob Church, Allegacy FCU

Interest rate and down payment factor into monthly progress. On a 30-year mortgage for a $250,000 home in 2019, a typical buyer with 20% down would pay $1,178 monthly and $141,556 in total interest based on a 3.94% average rate. At 5.32% today, that buyer pays $166 more each month and $200,764 in interest over the life of the loan. Then there are closing costs and prepaid taxes averaging $2,970 in North Carolina.

What can a buyer do? Dig deeper for a comfortable fit of home characteristics, value, and price, ideally with a down payment to reduce the loan total.

“Try to aim a little lower,” Guillama suggests, “because undoubtedly you’re going to pay a lot more than the asking price for a piece of real estate today. You want to shop at a lower price point to give yourself enough margin to still qualify at the new contract price.”

Are there tradeoffs?

A heftier loan drives up the loan-to-value ratio (LTV), interest rate, and some fees—particularly for individuals with lower credit ratings. Payments on that $250,000 home could climb out of reach if LTV exceeds 80% and triggers add-on payments for private mortgage insurance (PMI).

“We need to look at whether it’s advisable to have PMI or not,” says Church. “If they can make more on that 20% in an investment and they have good credit, it’s likely they’ll do better by paying for PMI.”

Coastal is among credit unions offering up to 100% financing with no PMI. Elsewhere, Guillama suggests buyers ask loan officers to price the PMI equivalent into the rate for increased tax advantage through deductible interest.

Higher home values since 2019 have padded sellers’ pockets for new buys, but nearly every home costs more now. Careful exchange of equity, especially for a home near the budget limit, anticipates a potential market dip. A sharp drop or early move could drain equity, sacrificing net worth and a backup funding source.

“Values are going to drop, but inevitably, they’ll come back up,” Church assures. “You’ve got to know when it’s right for you and whether you can wait out the possible decrease in value.”

First-time and government-guaranteed loan programs can minimize down payment pressure and reduce or eliminate PMI for new buyers or those with little to no upfront money. Those changing homes can preserve equity by moving to similar or less expensive homes and markets. For all, smart buying balances down payment, available equity, and PMI expense for the right home without straining the budget.

What is the cost of ownership?

Buyers beware: Even new homes at premium pricing are no shelter from recurring expenses. An eye on ongoing costs supports realistic budgeting to shield against surprises, and inspections shed light on issues that could linger.

“A lot of buyers are actually waiving inspections, not ordering surveys, and not doing septic inspections. They feel obligated to go through with a transaction no matter what,” says Guillama. “If you forego inspections, you run the risk of inheriting all those problems and have no one to blame but yourself and have no recourse. They’re your problems once you close.”

Experts like the Federal Housing Administration (FHA) say annual home expenses of up to 30% of income are “affordable.” Yet 45% of homeowners surveyed by Clever Real Estate earlier this year are spending more. Nearly one in three commits more than 40% of income to their homes.

“Continue focusing on your ultimate goal of homeownership, stay within your budget, and just make the best possible decision you can. It’s going to pay off.” Louis Guillama, Coastal CU

Why? Time under quarantine prompted many to upgrade their spaces, relocate, or right-size. Home values jumped and pulled up related costs like taxes and insurance, maintenance, and utilities—and those continue to rise. Added floorspace, new surroundings, and social pressure can create an urge to fill rooms or change styles.

“The first thing I ask a member is what their goals are, because not everybody’s goals are the same,” Church assures. “I want to know what’s important to them. I want to make sure I help them achieve not just their short-term goals but long-term and find out where they are in life, because life changes.”

Like the structures themselves, homebuying is more than curb appeal and sticker price. By taking a holistic look at mortgage factors and all ongoing housing costs, buyers can find houses they can comfortably call home for years to come.

“It’s important to partner with a trustworthy agent that’s looking out for your best interests,” Guillama advises. “Continue focusing on your ultimate goal of homeownership, stay within your budget, and just make the best possible decision you can. It’s going to pay off.”

COLUMBIA, S.C.—South Carolina credit unions provide citizens the best value for personal financial services according to Credit Union National Association Economics and Statistics, delivering $119.9 million in benefits among 1.6 million members during the twelve months ending September 2021. The figure equates to an average direct benefit of $74 per member and $155 per member household.

The South Carolina Membership Benefits Report for Third Quarter 2021 shows SC credit unions offer lower average interest rates on new and used car loans, unsecured loans, and credit card balances, higher savings yields on deposit accounts, and lower fees than banks.

Among the not-for-profit cooperatives, a 60-month new car loan rate averaged 2.75%, compared to 4.07% at a SC bank. In that case, a borrower would save $177 in interest annually when financing a $25,000 new vehicle through a SC credit union—or $885 over the life of the loan.

On average among SC institutions, credit union mortgage closing fees were $210 lower than at banks, and credit card late fees averaged nearly $10 less at credit unions.

"Consumers are ready to move ahead, weighing opportunities to build for the future or reduce the cost of home and auto purchases," Carolinas Credit Union League President and CEO Dan Schline stated. “By providing value in essential financial services, credit unions help people keep more for their own best interests, including support for other local businesses or charities. Member-owned, community-based institutions are a smart choice for all South Carolinians."

Specific benefits vary by institution and member, particularly those with long-term, multiple-service credit union relationships. SAFE Federal Credit Union of Sumter recently distributed an additional $1.5 million among members through 8% bonuses on deposit accounts and 3% rebates on loan interest paid in 2021. SAFE FCU has distributed bonus dividends and rebates to members for 21 consecutive years.

“The not-for-profit model is what makes credit unions such an attractive choice when it comes to banking,” SAFE FCU Board Chair Kay Oldhouser Davis noted in the credit union’s January 5, 2022 announcement of the distributions. “It allows us to return a portion of our net earnings back to our members and makes these year-end bonus returns possible.”

Credit union member benefits accompanied a 70-year-record 13.9% year-over-year increase in real per capita personal income for South Carolinians in Q1 2021, according to the Federal Reserve Bank of Richmond February 2022 Snapshot (SC).

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RALEIGH, N.C.—North Carolina credit unions provide citizens the best value for personal financial services according to Credit Union National Association Economics and Statistics, delivering $347.3 million in benefits among 4.6 million members during the twelve months ending September 2021. The figure equates to an average direct benefit of $75 per member and $157 per member household.

Details of the North Carolina Membership Benefits Report for Third Quarter 2021 include credit unions’ lower average interest rates on new and used car loans, unsecured loans, and credit card balances, higher savings yields on deposit accounts, and lower fees than banks.

Among the not-for-profit cooperatives, a 60-month new car loan rate averaged 3.04%, compared to 4.48% at a NC bank. In that case, a borrower would save $195 in annual interest when financing a new, $25,000 automobile through a NC credit union—or $975 over the life of the loan.

Average mortgage closing costs in NC were $210 less through credit unions than through banks, and credit card late fees averaged nearly $10 less at credit unions.

"Consumers are ready to move ahead, weighing opportunities to build for the future or reduce the cost of home and auto purchases," Carolinas Credit Union League President and CEO Dan Schline stated. “By providing value in essential financial services, credit unions help people keep more for their own best interests, including support for other local businesses or charities. Member-owned, community-based institutions are a smart choice for all North Carolinians."

Specific member benefits vary by institution and member, particularly for those with long-term, multiple-service relationships. Fort Bragg Federal Credit Union (Fayetteville, NC) distributed an additional $1 million in loyalty dividends in December 2021, averaging $26 more per member. And this week, Coastal Credit Union (Raleigh, NC) issued more than $4.1 million in special dividends, bringing its 2021 return to members to $41.6 million total and an average $139 per member.

“A great part of being a locally-based cooperative is, at the end of the year, we don’t pay dividends to Wall Street investors,” Coastal President and CEO Chuck Purvis reflected in the credit union’s announcement. “Instead, that money stays here in our community, and we reward the members who choose to do business with us every day.”

The positive results followed a 70-year-high 14.3% year-over-year increase in North Carolinians’ real per capita personal income in Q1 2021, according to the Federal Reserve Bank of Richmond February 2022 Snapshot (NC).

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Employers enrolled in the program are required to use the system to compare an employee's Form I-9 to DHS and Social Security Administration records to confirm employment eligibility within three days of hiring them. Because the system is shut down until funding is acquired, employers will not have access to their accounts.

Employers will not be penalized for delays in creating E-Verify cases or inability to resolve E-Verify Tentative Nonconfirmations (TNCs). To minimize the burden on employers and employees, DHS announced that:

• The three-day rule for creating E-Verify cases is suspended for cases affected by the unavailability of the service.
• The time period during which employees may resolve TNCs will be extended. The number of days E-Verify is not available will not count toward the days the employee has to begin the process of resolving their TNCs.
• Additional guidance regarding the three-day rule and time period to resolve TNC deadlines will be provided once operations resume.

Employers should keep track of new hires with I-9s that have not been verified. When E-Verify services resume, follow the instructions posted for creating and submitting queries.

Please contact CCUL VP of Human Resources Susanne Witteborg or Human Resources Manager Andrea Williams with any questions.

Related news: 

NC/SC credit unions among national effort to aid federal workers impacted by shutdown

Identity theft is a real threat and it can be damaging to your finances and personal life. Make sure you’re doing all you can to keep yourself safe during this holiday season. Here are 5 things you can do to stay protected.

Secure your passwords: Stop using the word ‘password’ as your password. People actually do this. And don’t use your mother’s maiden name. It’s time to get sneaky. Create a complex password that only you can remember. For instance, maybe you’re a big Yankees fan. Design a passphrase like, “I think the Yankees will win the World Series in 2018! Then use the initials, symbols, and numbers from that phrase to create your password. That would look like this: IttYwwtWSi2018! Nobody’s going to guess that one. According to howsecureismypassword.net, it would take a computer 16 billion years to crack that password.

Shred sensitive information: Your weekly routine probably involves dragging your trash can out to the street on trash day. Make sure when this happens, you’re not throwing anything away that an identity thief could find valuable. Anything that contains account numbers, banking information, or social security numbers would be gold for a thief. Get online, buy a paper shredder and put it to work. This is the easiest way to help yourself stay protected.

Tip #1: Educate yourself and your family on potential scams, phishing attempts, and how to avoid them by utilizing IRS and SCDOR information. Learn about different types of fraud from the SC Department of Consumer Affairs.

Tip #2: Protect your personal information. Make complex online passwords. Do not use the same password for multiple sites. Keep sensitive paper documents locked in a filing cabinet.

Tip #3: Be careful with your money. Know who you're dealing with in any situation involving monetary transactions. Don't send money to unestablished charities. Don't play foreign lotteries. Don't agree to deposit a check and wire money back. Research a company before you invest. Always be wary of unsolicited offers.

Tip #4: Review your monthly statements carefully for any unauthorized charges. Thieves can steal your account information and run charges on your debit and credit cards. If you notice any strange charges, contact your bank or credit card company immediately.

Look for more tips and information regarding scams, phishing emails, and identity theft from the US Securities and Exchange Commission, the Federal Trade Commission, and the IRS.

North Carolina taxpayers seeking tips on identity theft prevention, may learn more on the NC Department of Revenue’s website here.

Remember, South Carolina taxpayers may be eligible for state-provided, comprehensive credit and non-credit identity protection from CSID.

What Matters Now™ consumer research reveals only 14 percent use a credit union for their primary account today

Madison, WI—CUNA Mutual Group released its annual What Matters Now™ consumer research during CUNA’s Marketing and Business Development Council Conference Tuesday. Research indicated millennials are emerging as a diverse, yet strong financial force as many enter their lending and purchasing life stages. However, insights revealed traditional financial services are less compelling to this segment, who defines success through their family and children.

“Millennials are often described generally as one large group, but in reality this generation is not a one-size-fits-all, and they continue to grow in their diverse financial needs,” said Susan Sachatello, senior vice president of TruStage®, CUNA Mutual Group’s consumer brand. “Our research shows millennials’ financial needs vary substantially based on age, presence of children and even their geographic location.”

Millennials, who are currently between ages 18 and 34, comprise a quarter of the population – or about 75 million individuals and currently dominate the workforce, owning $200 billion in direct purchasing power.¹ According to Sachatello, there is a significant opportunity to attract millennials to credit unions.

“Credit unions have a strong association and alignment with the values that are important to millennials. Understanding this population and engaging them in the credit union value proposition could be a significant source of membership growth.”

Read the full article here. To learn more on the millennial market segment and gain insights into their motivations, worries and hopes, visit cunamutual.com/whatmattersnow and see this short video.

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About CUNA Mutual Group

CUNA Mutual Group was founded in 1935 by credit union pioneers, and the company’s commitment to their vision continues today. CUNA Mutual Group offers insurance and protection for credit unions, employees and members; lending solutions and marketing programs; TruStage™-branded consumer insurance products; and investment and retirement services to help customers build financial security. For more information, go to www.cunamutual.com.

According to a news release from the North Carolina Department of Justice (NCDOJ), thousands of Americans’ personal information is stolen by thieves who use it to file tax returns and collect large refunds each year. In many cases, victims don’t find out about the fraud until their own legitimate tax returns are rejected by the IRS, which says they’ve already processed a return under the same name and social security number.

To avoid tax return ID theft, the NCDOJ shared the following tips to protect your personal and financial information:

• Store your social security card in a safe, secure location.
• Never carry your social security card in your wallet or purse unless you need it that day.
• Shred old, unneeded documents that include your SSN.
• Avoid using your SSN online when possible. If you do need to enter your SSN into a website, look for an “https” at the beginning of the web address to ensure security.
• Limit the odds that a thief will collect your refund by filing your tax return as soon as possible.
• If you hire a tax preparation service to file your return this year, make sure the preparer is legitimate.

If the IRS tells you that they’ve received your return already this tax season, file a complaint with the Federal Trade Commission, consider placing a fraud alert on your credit reports, and contact the IRS to learn about filing an Identity Theft Affidavit. Taxpayers are often able to work with the IRS to sort out their tax returns and get their refund.

The alerts started to circulate earlier this summer, but the number of incidents has remained steady in some parts of the U.S.

In all, there have been alerts issued for 16 states and Walmart has been named as the location where the compromised cards were being used.

"The fraud pattern includes charges $50.00 and under which are being processed as "Pinless Debit" transactions. During these transactions, your card is swiped, but you are not asked to enter your PIN (Personal Identification Number) or sign for the transaction," the notice says.

As a result, all debit transactions at Walmart that are conducted without a PIN will be rejected.

Reports of fraud in 16 states is an alarming trend that's worth paying attention to, but again - this doesn't mean Walmart's card processing network has been compromised.

Right now, the larger picture is that since July, criminals have been using compromised cards at Walmart locations across the U.S., and because they've kept the purchases small – they've been flying below the radar.

This is why it is important that you keep an eye on your balances and monthly statements. Check to make sure each purchase and transaction is legitimate. If you can, use the financial institution's notification settings whenever possible.

Why does this happen?

What the criminals are doing when this type of fraud happens is cashing out on the value of their stolen cards. They make small purchases, such as the ones mentioned in each of the warnings, and use the card until it is drained of its balance or flagged and disabled. However, most crooks will use the card two or three times before tossing it away or reselling the data. This lowers the chances of them being caught. After they've cashed out the card, the items purchased are either resold (it's all profit at this point to the criminal) or they're kept for personal use.

Basic protections:

As a consumer, you should rarely – if ever – use your card as a debit card. You should always go for the credit option, as you'll benefit from the fraud protections offered by your bank and the card brand. If debit is the only option available, remember to use a PIN, and monitor your account balances and statements.

Read this full article on CSO Online  here.

The new website provides an interactive checklist that walks people through the recovery process and helps them understand which recovery steps should be taken upon learning their identity has been stolen. It also provides sample letters and other helpful resources.

In addition, the site offers specialized tips for specific forms of identity theft, including tax-related and medical identity theft. The site also has advice for people who have been notified that their personal information was exposed in a data breach.

Identity theft has been the top consumer complaint reported to the FTC for the past 15 years, and in 2014, the Commission received more than 330,000 complaints from consumers who were victims of identity theft.

The FTC works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.

Follow FTC on Facebook, Twitter, or subscribe here for the latest news and resources.

Record Transfer Services, the California-based company behind the flyers, hopes you’ll see that fast-approaching date and send a check for $83 instead of examining the flyer with a critical eye. Or better yet, call the toll-free “Pay by Phone” number listed on the flyer to pay right away. The North Carolina Department of Justice (NCDOJ) is investigating these mailings, and has taken action against similar schemes in the past.

Don’t pay an unnecessary fee for something that you can get yourself from your local government at little or no cost. To check out a suspicious mailing or file a complaint about one, contact the NCDOJ Consumer Protection Division toll-free at 1-877-5-NO-SCAM within North Carolina. You can also file a consumer complaint online at www.ncdoj.gov.

A North Carolina resident reported getting a “Dear Customer” email that Apple had temporarily restricted her iTunes account for security reasons. The email provided a link where she could restore full functionality by logging in to her account and verifying her identity.

After opening the link, she stopped immediately when she saw that the web page was asking for her Social Security number and credit card account information which, as she correctly noted in her message, “Apple would never do.”

This kind of email scam is called phishing. If you receive a phishing email, report it to the company the scammer is pretending to be, and forward the entire email to the Federal Trade Commission at spam@uce.gov. If you’ve fallen for a phishing email or another scam, contact your state’s respective department below for assistance.

Additional Resources

North Carolina Department of Justice
File a Complaint or Call 1-877-5-NO-SCAM

South Carolina Department of Consumer Affairs
File a Complaint or Call 1-800-922-1594

Apple
How to Report Phishing & Other Suspicious Emails

In Charlotte-Mecklenburg, Financial Crimes detectives said scammers have been calling residents, claiming to be with the CMPD Warrant Division. “Victims are told a warrant has been issued for them, because they failed to appear for jury duty,” the article stated.

According to detectives, the scammers then tell victims to buy MoneyPak cards to pay off the warrant and then meet the caller at police headquarters. But before that happens, the scammers call the victim again and ask for the serial numbers from the back of the MoneyPak cards, which they then use to access the money for themselves.

Meanwhile in the Fayetteville area, citizens have received phone calls from a man who claims to be a Cumberland County Sheriff’s Deputy. Similar to the scam in Charlotte-Mecklenburg, the caller is told that you’ll be arrested for failing to appear for jury duty unless you pay a fine immediately.

“These calls aren’t legitimate and are trying to scare you into paying money you don’t really owe,” said Attorney General Roy Cooper in a message posted July 9.

And this scam is not isolated to North Carolina. The South Carolina Department of Consumer Affairs also reported similar activity back in June.

Other versions of the jury duty scam include pre-recorded messages vs. live calls, and scare tactics to fool people into providing personal financial information which the scammers can then use to steal money and commit identity theft.

To avoid jury duty scams, remember:

• No law enforcement agency will ask for personal information or seek payment for fines or fees over the phone or by email. Most court related correspondence takes place through the mail.
• Never agree to send money to someone who calls you out of the blue. Many scams ask you to wire money or send it via a Green Dot MoneyPak Card.
• Never share personal information, such as your Social Security Number or bank account number, with anyone who contacts you.

If you receive one of these calls, immediately hang up and report it to your local police department or file a complaint with the Federal Trade Commission at www.ftc.gov/complaint. The FTC places the reported information into a secure consumer fraud database and shares it with local, state, and federal law enforcement agencies.

Additional Resources:
CMPD warns about jury duty scam (Charlotte Observer)
Don’t be guilty of falling for a jury duty scam (NCDOJ)
State warns of new twist in jury duty scam (WSPA)
Don’t Fall for Jury Duty Scam (FBI 2006 Report)

Credit unions are in an excellent position to help their members tiptoe through this cyber minefield. There are 10 tips credit unions, their employees and members can use to stay safe when banking online or on a mobile device. It’s difficult for the average consumer to stay current on the latest online threats whereas credit unions often have internal teams who already focus on those types of risks. The more information that’s available to members regarding threats and risk avoidance, the better they’ll be able to conduct their online banking in a safe, secure way.

1. Use strong passwords and don’t share them.

It doesn’t take long for hackers to decipher passwords that are extremely short or overly obvious (a member’s birthday or anniversary, for example). Rather than relying on a birth date or phone number as a password (or PASSWORD as a password), members should be encouraged to use difficult or not-easily-guessed passwords. Passwords should be at least eight characters long and include a mix of letters, numbers, special characters, punctuation and upper and lowercase. They should never be shared among financial, social networking and email sites. In addition, financial institutions should employ multifactor authentication for added security.

2. Change passwords regularly.

With recent revelations about the global risks of the Heartbleed bug and the resulting potential for widespread password vulnerabilities, changing old passwords is more important than ever. Unfortunately, many security glitches aren’t as widely reported, making password integrity something members don’t think about but should. Remember to encourage members to change important passwords quarterly (and more often if they can manage it).

3. Install robust antivirus software.

This is one of the easiest tools members can use to better protect themselves when conducting financial transactions online. The software should be updated frequently and should also include a web or online security component (some versions don’t). With the rise in mobile device use, remind members to protect their smartphones, tablets, and laptops, too.

4. Avoid clicking on email links.

Email is often the flytrap of choice for scammers who send out fake links designed to lure consumers to corrupt sites. Reinforce the message that members should never click on links in a suspicious email. When in doubt, they should type the URL directly into their browser window, or do a quick online search to check the URL’s validity. Phishing emails can take many forms, but some of the most effective are those that appear to be from your credit union and ask members to enter their account number or personal data. Let members know your organization (or any government agency for that matter) will never ask for sensitive information via email.

5. Confirm website authenticity.

Thieves love to use sleight of hand in the online world. They set up websites that look legit but are really just a front for their scam. Remind members to check the address bar to be sure the banking website they’re visiting is genuine. Not only should the site’s name be correct, it’s also best to look for “https” at the beginning of the address to confirm the presence of secure data protocols. It is important to advise members that if anything about your banking site doesn’t look right, they should avoid it and immediately report it to the credit union.

6. Use extra caution when surfing on public Wi-Fi networks.

The wireless signal at Starbucks or McDonald’s is convenient, but it’s just one more layer consumers need to scrutinize. Hackers often spoof network IDs to lure in unsuspecting users and steal the data that transits through. When in doubt, members should either opt for a home or corporate Wi-Fi network to conduct their online banking or use the cellular network (typically a more secure solution) on their mobile device.

7. Be wary of downloads.

Sites commonly offer information for download — product descriptions, location maps, signup forms, contest entries, menus, etc. — but members should be careful where they receive their content. Malware-laden files often masquerade as legitimate items, infecting the user’s computer or mobile device and potentially stealing sensitive data or compromising the security of online activities.

8. Limit sensitive data stored on computers and mobile devices.

One of the best ways to foil online thieves is to deny them access to the valuable information they seek. That means members should remove sensitive data — passwords, account codes, etc. — from their smartphones and tablets on a regular basis, preferably after each banking session. And for extra protection, they should never save User ID’s or passwords. When it comes to financial services, convenience must never trump security.

9. Check accounts and credit reports regularly.

No matter how careful members are, it is a near certainty some of their accounts will be compromised and/or they will become victims of identity theft. Therefore, it is imperative they monitor their credit reports, check their bank and credit card accounts frequently and enroll in the free transactional monitoring programs typically offered by credit unions. Early detection of a compromise can help to prevent an annoyance from becoming a nightmare.

10. And finally, credit unions must work with members to build a culture of security, through open communication and ongoing education.

It’s difficult for the average consumer to stay current on the latest online threats whereas credit unions often have internal teams who already focus on those types of risks. The more information that’s available to members regarding threats and risk avoidance, the better they’ll be able to conduct their online banking in a safe, secure way.

This article originally published in CU Times here.

In this latest report, the automated message—which can come from a variety of phone numbers—offers recipients a way to get their card back into service. Sometimes Caller ID displays only a partial number, or a number with no area code. The company or financial institution that issued the card is not named in the message.

Some recipients are instructed to “Press 1” (or 2), while others are given a telephone number to call. Regardless of the approach, eventually the consumer will be asked to enter his or her credit or debit card number, or other confidential information.

Although consumers are getting better about recognizing these scams, it never hurts to review these tips when faced with a “vishing” attempt:

• If you receive an email or phone call asking you to call and you suspect it might be a fraudulent request, contact your financial institution’s or organization’s customer service number already provided on your debit or credit card rather than the number provided in the phishing email or phone call.
• File a report with the Federal Trade Commission at www.ftc.gov/complaint. The FTC places the reported information into a secure consumer fraud database and shares it with local, state, and federal law enforcement agencies.
• Remember: Text or voicemail messages warning of problems with your account and offering a “fix” if you enter your account information are always phony. A legitimate company might use a message to notify you of a problem, but only if you have previously provided your number and specifically asked to be notified in that manner. But they will never ask you to supply information.

Additional Resources:

FTC Consumer Information: Phishing
FBI Press Release: Vishing Attacks Reported (2012)
MyCreditUnion.Gov: Frauds and Scams