Current Events in October 2015

It's that time of year again. If you are on Medicare, or are newly eligible, the annual open enrollment period to select or change coverage starts October 15 and runs through December 7.

For starters, you need to review your current plan to make sure it continues to meet your needs. Also, the plan itself might have changed. If so, you may already have received a notice.

Starting this month you should use Medicare’s Plan Finder to search for a plan that meets your needs. October 15 is the first day you can change your Medicare coverage for next year. On December 7, that window closes.

January 1

Coverage for the year begins January 1 if you switched to a new plan. If you stay with the same plan, any changes to coverage, benefits, or costs for the new year will also take effect on that date.

If you’re in a Medicare Advantage Plan, you can leave your plan and switch to Original Medicare. If you switch to Original Medicare, you’ll have until February 14 to also join a Medicare Prescription Drug Plan to add drug coverage.

Your coverage will begin the first day of the month after the plan gets your enrollment form. In certain cases, you may be able to make other changes if you qualify for a Special Enrollment Period.

The basics

New to Medicare? Here are some basic things you need to know: Medicare plans are divided into parts.

Part A pays for hospital care, skilled nursing, hospice, and even some home health care. This part is free, providing you or your spouse have been in the Social Security system for at least ten years. If not, premiums can run as much as $407 a month

Part B is more like regular health insurance, covering doctor visits, preventive care, outpatient care, and hospital visits. Premiums are based on income and are deducted from your Social Security payments if you are receiving benefits. In 2015, Part B cost $104.90 a month for Medicare beneficiaries whose incomes are $85,000 a year or less – $170,000 for a couple – and up to $335.70 for those whose annual income is greater than $214,000.

Part C is what is known as a Medicare Advantage plan. It combines parts A and B and, in most cases, Part D, the drug plan. Premiums vary by location and coverage. According to the Centers for Medicare & Medicaid Services, the average premium in 2016 will be $32.60. Advantage plans often limit where beneficiaries can get their care.

Part D covers prescription drugs, with premiums of $15 to $50 per month. It isn't required, but here's something to keep in mind; it's cheaper to enroll when you begin Medicare, instead of waiting until you are older.

Still have questions? AARP has a handy Medicare Question & Answer Tool. You can also visit Medicare.gov, or call 1-800-MEDICARE (1-800-633-4227) to learn more.

You might call it a bank robbery in reverse. The FBI and Secret Service have arrested one man and are looking for several others in a scheme in which Wells Fargo Bank employees allegedly stole customer account info and used it to steal money from the customers' accounts.

Ronald Reed of Inglewood, Calif., was arrested earlier this week and two former bank employees surrendered to federal authorities. Other defendants are still being sought.

Grand jury indictments charge Reed, four former bank employees and three unknown individuals in a scheme that caused Wells Fargo to suffer losses of approximately $1.4 million.

The scheme detailed in the indictments alleges that Reed recruited four bank employees in 2013 and 2014, asked them to access the bank’s computer records, and then purchased personal identifying information belonging to bank customers, including dates of birth, account numbers, driver’s license numbers, and Social Security numbers.

With this information, the currently unidentified “runners” used fake IDs to impersonate bank customers and made substantial cash withdrawals from the customers’ accounts. In some cases, the runners also used the customer’s account to deposit worthless checks and receive cash back.

The fraudulent transactions were made at bank branches across Southern California and in other states, including Minnesota and Nevada.

The defendants charged in the indictments are:

• Ronald Reed, also known as “Disco Ronnie,” 69;
• Michael Hester, 35, of Los Angeles, a former Wells Fargo employee;
• Jamal Hurley, 39, of Garden Grove, a former Wells Fargo employee;
• Garrick James Davis-Looney, 22, of Torrance, a former Wells Fargo employee;
• Jonathan Lawrence Cobbs, Jr., 35, of Los Angeles, a former Wells Fargo employee; and
• three defendants identified in the indictment as FNU LNU (First Name Unknown, Last Name Unknown).

All are charged with conspiracy to commit bank fraud, as well as various substantive counts of bank fraud, each of which carry a statutory maximum penalty of 30 years in federal prison. Additionally, each of the defendants is charged with at least one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.

When the government reported September's employment numbers earlier this month, it was a disappointment to economists and the stock market.

There were fewer jobs created than expected, and August's more robust numbers were revised downward. But maybe it's not as gloomy as it seems.

A new survey from the employment website Careerbuilder.com predicts full-time, permanent hiring in the fourth quarter will be the strongest since 2006. Seasonal hiring could outpace last year’s projections by a healthy margin.

According to the survey, 34% of U.S. employers plan to hire full-time, permanent staff in the fourth quarter. About the same percentage plan to add seasonal staff.

When the survey honed in on retailers, more than half – 53% – said they plan to take on seasonal help for the holidays, up from 43% last year. All in all, the survey casts the employment picture in a bullish light.

Healthy labor market

“Our study is reflecting a durability in the U.S. economy and labor market,” said Matt Ferguson, CEO of CareerBuilder. “Employer confidence is widespread and the strongest we’ve seen since 2006. Hiring will continue on an upward trajectory for both permanent and seasonal positions, with pay expected to improve over last year as companies keep pace with minimum wage hikes and compete more aggressively for elusive talent.”

According to Careerbuilder, 39% of employers added full-time, permanent employees in the third quarter, up from 34% in the same period in 2014 and 28% in 2013. Ten percent of businesses reduced their workforce, about the same as last year, while 49% made no change to staff levels.

For the future, 35% plan to add full-time, permanent employees in the current quarter, up from 29% in 2014 and 25% in 2013. Ten percent expect to reduce staff, on par with 9% last year. About 52% anticipate no change.

Bump in seasonal hiring

Because of the holidays, the fourth quarter is often marked by an increase in seasonal hiring and this year should be no exception. About 33% of employers said they expect to hire seasonal workers in the fourth quarter, up from 26% last year. Fifty-seven percent expect to transition some seasonal staff into full-time, permanent roles, up from 42% last year.

If you end up taking a seasonal job, not only do you have improved chances of turning it into a permanent position, you will likely earn more money. The survey shows 37% of employers say they will increase pay for their seasonal staff, up ten percentage points over last year.

Seventy-two percent of seasonal employers will pay $10 or more per hour while 19% will pay $16 or more.

Customer service in demand

Most of the seasonal hiring – 46% – will be for positions in customer services. There will also be demand for help in administrative support, inventory management, hosting/greeting, and shipping/delivery.

Your best chance of landing a job in the fourth quarter will be if you live in the south. The Midwest reported the largest year-over-year gain with 34% of employers planning to add full-time, permanent staff, up ten percentage points over last year.

Whole Foods Market is recalling Papillon Organic Roquefort Cheese sold in all stores nationwide.

The product may be contaminated with Listeria monocytogenes

No illnesses or infections have been reported to date.

The recalled cheese was cut and packaged in clear plastic wrap and sold with Whole Foods Market scale labels. It can be identified by the scale label that begins with PLU 029536. All “sell by” dates are affected.

Signs are posted on retail store shelves to notify customers of this recall, and all recalled product has been removed from shelves.

Customers who purchased this product may bring their receipt to the store for a full refund.

Consumers with questions may contact their local store or call 512-477-5566 ext. 20060 between of 9 a.m. and 5 p.m. (EST).

Consumers, car dealers, environmentalists, regulators, they're all mad at Volkswagen. And now you can add the U.S. Senate. It turns out that consumers who bought VW's "clean diesels" slurped up $50 million or so in "lean-burn technology motor vehicle" tax credits.

The top two senators on the Senate Finance Committee have written to Volkswagen, giving the company until Oct. 30 to answer some tough questions about whether those credits were justified.

"Volkswagen fleeced Oregonians and Americans across the country by selling 'clean' diesels secretly equipped with defeat devices (that hid their true emissions)," Sen. Ron Wyden (D-Ore.) said in a blog posting that claimed Oregonians own more VW diesels per capita than residents of any other state.

Wyden and Senate Finance Committee Chairman Orrin Hatch (R-Utah) said they are "launching a bipartisan investigation into VW’s cheating – cheating that millions of taxpayer dollars inadvertently subsidized because of VW’s deception."

Certified by Volkswagen

It all has to do with something called the Alternative Motor Vehicle Tax Credit, passed by Congress in 2005 to encourage taxpayers to buy high-efficiency, low-polluting cars. To qualify, manufacturers had to certify that their vehicles met certain standards, after which consumers could claim the tax credit, the senators note in their letter to Volkswagen.

In 2008, Volkswagen certified to the Internatl Revenue Service that the 2009 VW Jetta TDI sedan and SportWagen qualified for $1,300 tax credits based on their supposedly clean emissions profile. More VW and Audi vehicles were added later.

About 60,000 of the cars were sold by July 1, 2010. The credit was then cut in half until it expired on Dec. 31, 2010. Using those figures, the senators calculated the loss to American taxpayers at "well over $50 million."

In their letter, the senators give Volkswagen until Oct. 30 to produce documents relating to the tax credits. 

House holds a hearing

The letter was sent to VW CEO Matthias Muller and Michael Horn, president and CEO of Volkswagen Group of America. Horn is on Capitol Hill today, testifying before the House of Representatives Energy and Commerce Committee, which is also looking to grill VW and EPA officials.

In advance of today's hearing, the EPA told U.S. lawmakers it could not divulge new details about its probe since it is still conducting its investigation. Previously, officials have said that VW deceived regulators by building the "cut-out" software that turned on emission controls when vehicles were being inspected, then turned it off when the inspection ended. 

In written testimony prepared for today's House hearing, officials said VW also conspired to cover up evidence of its deceptive actions.

Besides various federal investigations, VW also faces a flood of consumer lawsuits and investigations by state attorneys general, including New York's Eric Schneiderman. 

"No company should be allowed to evade our environmental laws or promise consumers a fake bill of goods. That is why my office is investigating troubling reports that millions of Volkswagen cars carried software designed to cheat emissions tests that protect our environment," Schneiderman said. "We look forward to collaborating with Attorneys General across the nation on this matter.”

Months after it was uncomfortably thrust into the limelight on a “60 Minutes” broadcast, Lumber Liquidators (an Authorized Partner) has reached a multi-million dollar settlement with the U.S. government over its use of illegally imported wood used in flooring products.

The Virginia-based firm announced the settlement with the U.S. Justice Department, saying it concludes the government's inquiry that began two years ago. The charges relate to the company's compliance with the Lacey Act, a conservation law protecting plants, fish, and wildlife.

The investigation focused on some of the Company's hardwood flooring purchase orders and import declarations made concerning the origin of the timber of those orders. It did not involve whether some of the company's imported flooring contained dangerous levels of a toxic substance.

The company said it would pay a combined total of $10 million in fines, community service payments, and forfeited proceeds. The $10 million is broken down into a $7.8 million fine, community service contributions of $880,825, $350,000 to the National Fish and Wildlife Foundation and the Rhinoceros and Tiger Conservation fund, respectively, and a $969,175 forfeiture payment.

Unrelated to California probe

“Lumber Liquidators (an Authorized Partner) fully cooperated with federal authorities and is continuing to make significant enhancements to its sourcing and compliance practices,” the company said in a statement. “This settlement is unrelated to current California Air Resources Board ("CARB") related claims around certain Lumber Liquidators (an Authorized Partner) products.”

Lumber Liquidators (an Authorized Partner) has denied charges that some of its laminate wood products contain hazardous quantities of formaldehyde, a known carcinogen. Those allegations were the crux of the "60 Minutes" broadcast.

At the time, company founder and chairman, Tom Sullivan, maintained that the charges were part of a plot by Wall Street short sellers to drive down the company's stock price.

While the California probe goes on, Lumber Liquidators (an Authorized Partner) has agreed to plead guilty to violations of a Customs law and the Lacey Act. It includes four misdemeanor due care violations of the Lacey Act and a single felony charge for entry of goods by means of false statements.

Continuing to cooperate

Lumber Liquidators (an Authorized Partner) said it is continuing to cooperate with the Consumer Product Safety Commission, CARB, Securities and Exchange Commission, and U.S. Attorney's Office for the Eastern District of Virginia, with respect to additional ongoing inquiries and legal proceedings not covered by the settlement.

"We appreciate the opportunity to have collaborated with the Department of Justice to develop an Environmental Compliance Plan, which we believe when fully implemented will be one of the strongest and most comprehensive in the industry," said Jill Witter, the company's chief compliance and legal officer. "The program is designed to ensure an unbroken and verified chain of custody and documentation of our products from the store all the way to the forest.”

When oil prices started to dive about one year ago, no one thought they would go this low and stay this low for this long.

As a result, gasoline prices and competitive air fares have made travel more affordable than it's been in some time. To make it even more affordable, consumers who used a rewards credit card geared to travel can save even more.

According to personal finance website CardHub’s latest Credit Card Landscape Report, some cards offer consumers sign-up bonuses worth up to $625 and various other perks. The key to landing these perks, of course, is to have an above-average credit rating.

CardHub compared more than 1,000 credit card offers – and in the interest of full disclosure, some originate from CardHub advertising partners – in order to identify the best travel deals.

Best Initial Bonus

The survey found the value of initial rewards bonuses consumers can reap just by signing up appears to have stabilized near record highs during the third quarter. That said, bonuses offered in the form of points or miles have more than doubled in value over the last five years.

In the category of “Best Initial Bonus,” CardHub selected two cards; the Citi Thank You Premier Card and the Chase Sapphire Preferred Card.

The Citi card will award you 50,000 bonus points if you spend $3,000 during the first three months of card activation. You can then trade those points for a $625 statement credit that will go to pay travel-related charges that post to your account.

In addition, you rack up three points per $1 spent on travel and gas, two points per $1 on dining and entertainment, and one point per $1 on everything else. On the downside, there's a $95 annual fee, but it doesn’t kick in until the second year.

Putting at least $4,000 on a Chase Sapphire card during the first three months your account is open will result in a 40,000-point rewards bonus, which can be redeemed for $500 in travel accommodations booked through Chase's Ultimate Rewards Program or a $400 statement credit.

Best All Around

The Barclaycard Arrival Plus and Capital One Venture Rewards Card share honors for “Best All Around” travel cards.

The Barclaycard gives you a 40,000-mile rewards bonus, redeemable for $400 in travel expenses, but only if you spend $3,000 during the first three months the account is open. You’ll also earn the miles-equivalent of 2% cash back on all other purchases and receive a 5% rebate on miles redeemed for travel.

Spending $3,000 in the first three months will also get you 40,000 bonus points on the Capital One card. These points can be used to receive a $400 statement credit to pay for any travel-related expenses. The ongoing reward rate is two miles per $1 spent, with no limits or expiration dates.

This card also charges a $59 annual fee, but it is not assessed during the first year.

Other categories include “Airline Rewards,” “Hotel Rewards,” and “Road Trip Rewards.” After selecting the right credit card, the authors say the next step is to use it. In addition to the rewards, Credit cards offer $0 fraud liability guarantees, the lowest possible currency conversion rates, and complementary rental car insurance coverage.  

The new Fiat 500X, a small SUV, qualifies for the IIHS TOP SAFETY PICK+ award after earning good ratings in all five of the Insurance Institute for Highway Safety's (IIHS) crashworthiness tests and an advanced rating for front crash prevention.

For Fiat Chrysler Automobiles, it's is the second vehicle -- after the Chrysler 200 -- to earn the Institute's highest award for 2015.

Strong test results

In the most challenging IIHS evaluation, the small overlap front crash test, the 500X's driver space was maintained reasonably well, with maximum intrusion of 4 inches at the door hinge pillar and instrument panel. The dummy's head contacted the front airbag, though it then moved to the left side, leaving the head vulnerable to contact with forward structure.

The side curtain airbag deployed and had sufficient forward coverage to protect the head on the left side. Measures taken from the dummy indicate that injuries to the left lower leg would be possible in a crash of this severity, but the likelihood of other injuries is low.

In the moderate overlap test, the only issue was possible injuries to the right foot. There were no problems with the side crash test performance. The vehicle also has good head restraints and seats for whiplash prevention in a rear crash and a good roof strength rating for rollover protection.

The 500X has an optional front crash prevention system that earns an advanced rating. In the Institute's 12 mph track test, a 500X equipped with the system avoided a collision in four out of five runs. In the 25 mph test, the impact speed was reduced by 5 mph. The system also has a forward collision warning function that meets criteria set by the National Highway Traffic Safety Administration.

To qualify for the 2015 TOP SAFETY PICK award, vehicles must earn good ratings in the moderate overlap front, side, roof strength and head restraint tests, plus a good or acceptable rating in the small overlap test.

For TOP SAFETY PICK+, vehicles also need an available front crash prevention system with an advanced or superior rating.

BRP US of Sturtevant, Wis., is recalling about 240 Youth model Can-Am all-terrain vehicles

The fuel filter can break and leak, posing a fire hazard.

The company has received eight reports of the fuel filter breaking and leaking at dealerships. No injuries have been reported.

This recall is for the model years 2015 and 2016 Youth Model Can-Am TMDS 90TM and DS 90TMX ATVs. The recalled vehicles have an engine size of 90 cubic centimeters.

The vehicles came in black and yellow. “Can-Am DS” and the engine size are painted in white on both sides of the vehicle’s fairing. “Can-Am” appears in white letters on both sides of the seat.

The ATVs, manufactured in Vietnam, were sold at Can-Am dealers nationwide from May 2015, through September 2015, for between $2,800 and $3,800.

Consumers should immediately stop using the recalled vehicles and contact a BRP dealer to schedule a free repair. BRP is notifying registered consumers directly about this recall.

Consumers may contact BRP toll-free at 888-272-9222 from 9 a.m. to 9 p.m. (ET) Monday through Friday or online at http://can-am.brp.com/off-road/owners/safety/safety-recalls/youth-all-terrain-vehicles.html.

A lot of high-powered research is currently aimed at Alzheimer's disease, as the huge Baby Boom generation moves into old age.

Since age is a principal risk factor, health officials are concerned that the memory-robbing and ultimately fatal disease could become an epidemic. Scientists working independently have recently uncovered new information that may lead to improved treatments. Both involve genes.

At Indiana University (IU), a research team has identified an immune system gene associated with higher rates of amyloid plaque buildup in the brains of Alzheimer’s patients and older adults. This plaque is believed to be a primary cause of the disease.

Potentially more harmful gene

The variant occurs in the IL1RAP gene, and researchers say it is associated with even more plaque build-up than the previously discovered APOEe4 allele gene.

The new study found that the amyloid-associated IL1RAP variant was also associated with a faster loss of memory and overall cognitive ability.

"These findings suggest that targeting the IL1RAP immune pathway may be a viable approach for promoting the clearance of amyloid deposits and fighting an important cause of progression in Alzheimer's disease," said Andrew Saykin, director of the Indiana Alzheimer Disease Center and the national Alzheimer's Disease Neuroimaging Initiative Genetics Core.

In unrelated research, scientists at State University of New York (SUNY) have found that women who have the APOEe4 allele gene variant experience a steeper decline in body mass index (BMI) after age 70 than those women without the version of the gene, whether they go on to develop dementia or not.

Weight may be a clue

Why is this important? Because it adds to a body of evidence suggesting that body weight change may provide a tell, aiding doctors in the diagnosis and management of Alzheimer's disease.

Research team leader Deborah Gustafson says women tend to follow a U-shaped relationship between age and BMI, a common marker of overweight and obesity. From the time they enter middle age to the time they reach 70 years of age, the average adult tends to gain weight. In other words, that's the norm.

After age 70, weight tends to decrease on average. This weight change over the life course may be due to aging, changes in body composition, energy metabolism, sensory changes, and changes in the brain related to regulation of basic body processes.

But the researchers found that among adults who develop dementia, this pattern is altered. Studies have shown that being more overweight or obese in mid-life may increase risk for dementia. Studies have also shown that after age 70 years, adults who develop dementia may lose weight more rapidly compared to those who do not develop dementia.

Protective pounds

Being a little overweight in later life is protective against both dementia and death.

Gustafson says those with the APOEe4 allele gene experience greater or steeper decline in BMI after age 70 years, even if they don't develop dementia. The discovery, she says, may aid in understanding of how doctors can better intervene among those at highest risk for dementia.

Alzheimer's disease affects more than 5 million older Americans and there is currently no therapy proven to halt or reverse the underlying cause of the progressive symptoms of dementia, though recent research has seemed promising.

Researchers are increasingly focused on mechanisms involved with the deposit and clearance of amyloid plaques, particularly in early stages when symptoms are mild or not yet present.

Arbitration clauses are often presented as protecting consumers from the necessity of going to court to settle disputes. But in reality, forced arbitration strips consumers of the right to sue individually and as part of a class action.

The Consumer Financial Protection Bureau (CFPB) is not happy about this and is considering proposing rules that would ban consumer financial companies from using “free pass” arbitration clauses.

Buried in many contracts for consumer financial products like credit cards and bank accounts, most arbitration clauses deny consumers the right to participate in group lawsuits against companies. With this free pass, companies can sidestep the legal system, avoid big refunds, and continue to pursue profitable practices that may violate the law and harm countless consumers.

“Consumers should not be asked to sign away their legal rights when they open a bank account or credit card,” said CFPB Director Richard Cordray. “Companies are using the arbitration clause as a free pass to sidestep the courts and avoid accountability for wrongdoing. The proposals under consideration would ban arbitration clauses that block group lawsuits so that consumers can take companies to court to seek the relief they deserve.”

Not everyone thinks the CFPB is on the right track.

Matt Adler, partner and chair of the International and Domestic Arbitration Practice Group at Pepper Hamilton LLP says there are substantial Constitutional hurdles for the CFPB. He noted that Justice Scalia held for the majority of the American Express vs. Italian Colors case, writing: "No contrary Congressional command requires us to reject the waiver of class arbitration here." 

Thus, said Adler, "Unless there is an amendment to the Federal Arbitration Act, the agency rule should not survive the recent wave of Supreme Court decisions upholding these waivers."

Sen. Richard Blumenthal (D-Conn.), on the other hand, praised the Bureau's action, calling it a "crucial step towards ending the use and abuse of forced arbitration clauses that deny millions of Americans the chance to seek justice."

"[T]these clauses have one purpose and one purpose only: to stop large financial institutions that abuse their customers from being held accountable," Blumenthal said in an email. "I look forward to supporting the CFPB’s efforts to ban forced arbitration in financial contracts, and I will continue fighting to end the use of this practice in every sector of the economy.” 

In May, Blumenthal led a letter with Senator Al Franken (D-Minn.) urging the CFPB to undertake rulemaking to eliminate use of forced arbitration clauses and is an original co-sponsor of the Arbitration Fairness Act of 2015 (S.1133), which would ban all forced arbitration agreements so far as they impact employment, consumer, antitrust, or civil rights dispute.

Restricts consumers' relief

A CFPB study – released in March of this year – showed that arbitration clauses restrict consumers’ relief for disputes with financial service providers by allowing companies to block group lawsuits.

The study also found that, in the consumer finance markets studied, very few consumers individually seek relief through arbitration or the federal courts, while millions of consumers are eligible for relief each year through group settlements. According to the study, more than 75 percent of consumers surveyed in the credit card market did not know whether they were subject to an arbitration clause in their contract. Fewer than 7 percent of those consumers covered by arbitration clauses realized that the clauses restricted their ability to sue in court.

Today, the Bureau is publishing an outline of the proposals under consideration in preparation for convening a Small Business Review Panel to gather feedback from small industry stakeholders. This is the first step in the process of a potential rulemaking on this issue.

The proposals being considered would ban companies from including arbitration clauses that block class action lawsuits in their consumer contracts. This would apply to most consumer financial products and services that the CFPB oversees, including credit cards, checking and deposit accounts, prepaid cards, money transfer services, certain auto loans, auto title loans, small dollar or payday loans, private student loans, and installment loans. 

An outline of the proposals under consideration is available here. 

When an Experian database was breached last week, personal information about 15 million T-Mobile customers was compromised. The breach had almost immediate impact.

“I saw an article over the weekend that there is already some evidence that identities from that breach were for sale on the web,” Ken Meiser, Vice President of ID Analytics, told ConsumerAffairs.com.

Experian reports that more than 700,000 Illinois residents may have had their data compromised, including Social Security numbers. Illinois Attorney General Lisa Madigan says her office is taking the breach very seriously.

“We have been in contact with the company to review the circumstances of the breach and anticipate working with Attorneys General across the country on this matter,” Madigan said. “Identity theft is a serious threat, and incorporating a few commonsense precautions in your daily routine can greatly reduce any damage done as a result of a data breach."

Evolving threat

Meiser says the identity theft threat has quickly evolved over the years. Not long ago it was a product of what he calls “friendly fraud,” when someone you know used your personal information to open credit accounts.

Then it transitioned to phishing scams. You might get an email purporting to be from your bank. If you clicked on a link you would be taken to a site that instructed you to enter personal information.

These days fraudsters are more likely to target the database of a corporation, like T-Mobile. Yes, it may be harder to break in but if successful, the fraudster stands to gain millions of identities to steal.

“What we've seen in the last few years, and the pace of these disclosures continues to rise, is these wholesale data breaches that includes large amounts of personal identification information (PII) for really large populations,” Meiser said.

505 data breaches

In fact, Meiser says 140 million records were compromised in 505 breaches between January and August this year. In a new report, ID Analytics shows how identity theft places a burden on victims and presents tremendous challenges to businesses and government agencies.

These days, Meiser says identity thieves have specialized. Stolen identities are used in different ways, with different fraudsters specializing in different industries.

“Credit card fraudsters are really good at getting access to lines of credit and exploiting them quickly,” he said. “They go buy a TV or go buy clothes that can be sold on eBay or at a flea market.”

In particular, identity thieves have targeted the telecom industry. Identity thieves don't try to use their stolen data to buy a big ticket item like a car, which is easy to track. Instead, they use stolen identities to make quick hits, buying expensive cell phones or TVs.

“If you're a telecom or retail bank card client, chances are good that merchandise has walked out of the store and you're never going to see it again,” Meiser said.

Looking for patterns

ID Analytics is one of the companies providing businesses with real time credit monitoring information. When someone applies for credit, whether it's for a car or a cell phone, ID Analytics instantly scans credit histories, looking for patterns. If something doesn't look right, it flags the transaction.

Consumers are more at risk now than ever before. True, they can avoid phishing scams and keep their PC's malware protection up to date, but they have no control over whether a fraudster compromises a corporate data base where their personal information may reside.

When an identity is compromised, what does that mean for the consumer going forward? How easily is this fixed?

“To go to the punchline? It looks to us like you're probably going to be dealing with the hangover from that for years to come,”Meiser said.

Meanwhile, businesses are being forced to reexamine their security measures on an almost daily basis. They're finding it challenging to keep customer information safe as fraudsters devise ever-more-clever means to obtain it.

“This is likely to be an arms race,” Meiser said. “For every proactive action that industry or consumers take, fraudsters are going to get smarter about certain things, and vice versa.”

Repair or replace -- those are basically the options Volkswagen faces as it tries to figure out what to do about 11 million diesel-powered cars that were sold with software that intentionally gives incorrect emission readings.

The most extreme option is replacing some or all of the cars. The simplest is reprogramming the software that controls the emission system. Whatever happens, Volkswagen says recalls will begin in January and are expected to be completed by the end of 2016, a VW spokesman said.

Whatever VW is going to do, it needs to make up its mind. German regulators have set a deadline of today (Wednesday, Oct. 7) for the company to present a preliminary plan, Bloomberg Business reports. 

Since numerous models are equipped with the deceptive software, there may be different fixes for different models. Some models might get by with a reprogramming, others with a bigger catalytic converter. But in some models, a more expensive and complicated solution may be needed.

There's also the problem of performance and fuel economy. Some of the simpler solutions could solve the emissions problem but reduce the car's acceleration and mileage, likely leading to customer dissatisfaction and litigation.

Lawsuits piling up

And speaking of litigation, lawsuits against VW are piling up. Nearly 230 class-action suits have been filed in 37 U.S. states. And now West Virginia looks to become the first state to file against Volkswagen on behalf of VW owners.

West Virginia Attorney General Patrick Morrisey filed suit Friday seeking compensation for 2,684 VW diesel owners in his state. The suit seeks restitution of up to $6,855 per car plus $5,000 for each violation of the state's consumer protection law.

“West Virginia consumers responded to Volkswagen’s advertising by purchasing TDI clean diesel models, expecting that their vehicles would be environmentally friendly, fuel efficient, and high performance as advertised.” Morrisey said. “According to the complaint, Volkswagen will not be able to comply with the EPA order to make the affected vehicles comply with emissions standards without substantially degrading their performance and fuel efficiency to a level below what was advertised.”

West Virginia's first-in-the-nation filing is appropriate since it was a May 2014 study conducted by the Center for Alternative Fuels, Engines & Emissions at West Virginia University that first found elevated levels of emissions on several Volkswagen cars.

Their data was then turned over to the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board, leading to the current crisis that threatens VW's brand and leaves consumers in limbo.

Wall Street is getting excited about crude oil again and that's not particularly good news for consumers.

The price of crude oil surged almost 5% in Tuesday's trading, reaching its highest level in more than a month. Data from the Energy Information Administration showed a drop in production. Before that, oil prices had been slowly rising off what now appears to be a bottom, up 27% since August.

Even though it takes a while for oil prices to work their way through the retail gasoline system, motorists have seen a pause in the steady decline of prices at the pump. The AAA Fuel Gauge Survey shows the national average price of self-serve regular has been at around $2.29 a gallon for the last couple of days. That's still a dime cheaper than it was a month ago.

“So far, despite the two-day hit on most spot market gasoline products of a dime plus, we aren’t seeing any large jumps,” Jeffrey Pelton, senior petroleum analyst at GasBuddy, told ConsumerAffairs. “The Midwest saw some activity – up three cents – but more related to unplanned refinery issues that continue to plague the industry rather than the current spike.”

June peak

AAA says retail averages peaked in mid-June and have declined 51 cents per gallon since then. It says the national average tends to move lower during the fall and winter months due to seasonal declines in both driving and gasoline demand, and pump prices have fallen during the month of October for three years in a row.

Even with refineries going offline to conduct scheduled maintenance, AAA says there should still be more than enough gasoline to meet demand because people tend to drive less this time of year. As long as there are no major disruptions to supply, the national average price of gasoline is expected to move lower by the end of the year, and for the first time since 2009, could fall below the $2 per gallon benchmark.

Pelton agrees that there appears to be enough oil and refined gasoline in the pipeline to counter jumps in the price of crude oil, at least in the short run.

Double-digit drops still ahead

“I still feel strongly that once we get out of the October malaise, November will see 10-12 cent drops, with December showing even better numbers 13-15 cent drops,” he said. “It should be a great holiday season for drivers.”

Meanwhile, drivers in every state are paying an average price at the pump below $3 per gallon for the first time since 2009, according to AAA. Averages on the West Coast remain some of the highest in the nation, and California, at $2.94, has unseated Alaska as the nation’s most expensive market for retail gasoline.

Consumers in New Jersey and South Carolina are paying the nation’s lowest averages at the pump, and are among four states with retail averages below $2 per gallon.

Yet from here, a lot depends on the price of oil. Prices have rallied from below $40 per barrel to near $50 per barrel in Wednesday's trading. But it remains to be seen how much higher prices will move in the face of a continuing supply glut.

When motorists were paying close to $4 a gallon, oil sold at around $100 a barrel.

If you're a guy, you probably have received emails about “dietary supplements” or “foods” that promise to enhance your sexual performance or increase sexual stimulation.

Your first impulse may be, “How do they know...?”

Your second should be to have nothing to do with them. The Food and Drug Administration (FDA) warns that they might contain hidden drug ingredients or other undisclosed ingredients and can endanger your health.

Loads of problems

Thus far, FDA lab tests have found that nearly 300 of these products contain undisclosed drug ingredients. These can include the same active ingredients found in prescription drugs that are FDA-approved for the treatment of erectile dysfunction (ED), such as Viagra, Cialis, and Levitra.

Not only do these products contain undisclosed drug ingredients, but they also sometimes may include combinations of undisclosed ingredients or excessively high doses, both potentially dangerous situations.

Even a cautious consumer can’t tell that these products are, in fact, tainted with undisclosed drug ingredients because their labels do not list the potentially hazardous ingredients.

Consumers may be misled to believe these products are safe because their labeling often suggests they are “all-natural” or “herbal” alternatives to FDA-approved prescription drugs for the treatment of ED.

“We’re finding an alarming number of these products sold online and in retail stores. They’re often sold in single-serving sizes in gas stations or vending machines. We’ve seen pills, coffees, chewing gum and dissolvable oral strips that contain hidden drug ingredients or untested chemicals,” said Gary Coody, R.Ph., thenFDA’s national health fraud coordinator. “Consumers have no way of knowing which drugs or ingredients are actually in the product just by reading the ingredients on the label.”

A drug cocktail

Even more troubling is that many of the hundreds of products that the FDA has tested contained high doses of undeclared (or hidden) mixtures of different drug ingredients. For example, one of these tainted products included 31 times the prescription dose of tadalafil (the active ingredient in Cialis), in combination with dapoxetine, an antidepressant that is not approved by FDA.

“Some of these products have as many as six different ingredients contained in FDA-approved prescription drugs and analog of those ingredients, which are similar compounds of the drugs. We don’t know what danger this poses because these combinations have never been studied before they’re sold to unsuspecting consumers,” Coody says.

Unlike prescription and some non-prescription drugs, many dietary supplements may be legally marketed without a prior FDA evaluation of their safety and effectiveness. The FDA typically investigates dietary supplement products after they are marketed as a part of a routine or for cause facility inspections. It may also look into a drug after it receives reports associating it with adverse events. Under the law, it is the company’s responsibility to make sure that its products are safe and that the claims they make are true.

What to do

Watch out for products that:

• Promise quick results (within 30 to 40 minutes)
• Are advertised as alternatives to FDA-approved prescription drugs
• Are sold in single servings
• Advertise via spam or unsolicited emails
• Have labels written primarily in a foreign language
• Have directions and warnings that mimic FDA-approved products

If you suspect a product marketed as a dietary supplement may be tainted, report it to FDA. You or your health care professional can also report an illness or injury you believe to be related to the use of a dietary supplement by calling 1-800-FDA-1088 or visiting FDA online.

It’s no secret that many (note: not all) children model their own behavior after their parents. Many observable social and behavioral tendencies are developed this way, but a recent study suggests that a child’s self-esteem is also linked to who they perceive to be the most powerful, or dominant, parent.  

Researchers from the University of Sussex came to this conclusion after studying 125 English and Indian families living in Britain. Their objective was to determine how varying cultures differ when it comes to power structures within the family.

English and Indian families were studied because they are vastly different when it comes to which parent plays a more dominant role. Indian families are much more patriarchal, which is common of more traditional family structures; fathers act as the head of the household and are in charge of discipline.

The same family power structure is not typical for English families, or others that fall under the umbrella of “Western culture”. Although these families are still slightly patriarchal, the mother plays a much more important role, especially to children. They primarily take care of the household, care for the children, and are in charge of discipline.

Cultural differences

By observing these two contrasting family structures, researchers were able to see how self-esteem was affected by who children perceived to be the dominant parent. For example, English mothers who were detached, intrusive, controlling, or lax on discipline raised children who had lower self-esteem. In much the same way, Indian fathers greatly impacted the lives of their children with their actions.

“Mothers and fathers play different roles in different cultures – these findings highlight the importance of these distinct gender-based power structures on a child’s self-worth,” said Dr. Alison Pike, who co-authored the study. She goes on to suggest that looking at parenting through a cultural lens is increasingly important for nations with diverse populations.

The full study has been published in the Journal of Cross-Cultural Psychology. 

It was a big week for mortgage applications.

Data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey show applications surged 25.5% in the week ending October 2, 2015.

“The number of applications for purchase and refinance mortgages soared last week due both to renewed rate volatility and as many applications were filed prior to the TILA-RESPA regulatory change,” said MBA’s Vice President of Research and Economics Lynn Fisher. “The average loan size of applications in the weekly survey increased by 6.9%, driven by a 12.1% increase in the average size of refinances.”

While the Refinance Index jumped 24% from the previous week, the refinance share of mortgage activity slipped slightly to 57.4% of total applications from 58.0% the previous week.

The adjustable-rate mortgage (ARM) share of activity rose to 7.6% of total applications, the FHA share was 12.7%, the VA share fell to 9.2% from 10.3% and the USDA share of total applications held steady at 0.7%.

Contract interest rates

• The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) fell nine basis points -- from 4.08% to 3.99%, the lowest level since May, with points increasing to 0.46 from 0.45 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
• The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) dropped to 3.89%, the lowest level since April, from 3.96% with points decreasing to 0.25 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
• The average contract interest rate for 30-year FRMs backed by the FHA was down seven basis points to 3.80%, the lowest level since May, with points increasing to 0.35 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
• The average contract interest rate for 15-year FRMs decreased to 3.24%, the lowest level since May, from 3.29%, with points slipping to 0.38 from 0.41 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
• The average contract interest rate for 5/1 ARMs rose one basis point to 2.96%, with points decreasing to 0.32 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The survey covers over 75% of all U.S. retail residential mortgage applications.

Land Rover is recalling 5,914 model year 2014 Land Rover Range Rover Sport vehicles manufactured December 16, 2013, to April 15, 2014.

The owner's handbook information may incorrectly describe the functionality of the Air Bag Status Indicator Lamp. As such, these vehicles fail to comply with requirements of the Federal Motor Vehicle Safety Standard (FMVSS) number 208, "Occupant Crash Protection."

An occupant who does not correctly understand the air bag functionality, may be at an increased risk of injury in a crash.

Land Rover will notify owners and send out an owner's handbook supplement to all affected owners, free of charge. The recall is expected to begin October 31, 2015.

Owners may call Land Rover customer service at 1-800-637-6837. Land Rover's recall number is P071.