Current Events in October 2017

The Consumer Financial Protection Bureau (CFPB) has finalized a rule requiring lenders to determine whether a borrower has the means to repay the loan.

Currently, payday loan borrowers can secure a loan without financial documentation; usually in the amount of $200 to $500. Since the loans are due in two weeks, borrowers often take out another loan to repay the first one.

The CFPB aims to put a stop to this by preventing borrowers from ending up with a series of loans (each with steep fees) to refinance the same debt.

The new rule not only covers payday loans, but similar products like auto title loans, deposit advance products, and longer-term loans with balloon payments. 

Small dollar lenders will also face new restriction on their ability to make repeated attempts to debit payments from a borrower’s bank account, resulting in mounting fees and even account closure.

'Trapped in loans'

“Too often, borrowers who need quick cash end up trapped in loans they can’t afford," said CFPB Director Richard Cordray. "The rule’s common sense ability-to-repay protections prevent lenders from succeeding by setting up borrowers to fail.”

The Community Financial Services Association of America (CFSA), the trade group representing payday lenders, said the CFPB is out of touch and ignoring the wishes of consumers.

“This federal small-dollar lending rule is a tremendous blow to the more than one million Americans who spoke out against it during last year’s comment period," said Dennis Shaul, the group's CEO. "Millions of American consumers use small-dollar loans to manage budget shortfalls or unexpected expenses.

Praise from consumer advocates, however, is nearly universal. Michael Calhoun, president of the Center for Responsible Lending, says the new rule is a step toward preventing financial harm to families, who often turn to payday loans because they are struggling to make ends meet.

"Today's rule release was years in the making, and it wouldn't have been possible without the tireless effort of community and faith leaders, consumer and civil rights advocates, and countless people across the country who organized and worked hard to make their voices heard.

Payday loans normally carry what might seem modest -- $15 to $30 on a loan of around $100. But because the loan amount is small, and only for a two week period, the annual interest rate is extremely high, usually 400 percent or more.

Before making a loan, small dollar lenders will now be required to determine whether the borrower can pay back the loan when it is due two weeks later. For longer-term loans with a balloon payment, full payment is defined as being able to afford the payments in the month with the highest total payments on the loan.

Low-cost installment loans

Nick Bourke, director of The Pew Charitable Trusts’ consumer finance project, says the new rule opens the door to lower-cost installment loans from banks and credit unions. But regulators, he says, still have work to do.

“Bank and credit union regulators must now create the clear guidelines these lenders need in order to make small installment loans safely and profitably," Bourke said. "If they do, millions of consumers can save billions of dollars by gaining access to lower-cost credit."

Despite the celebration among consumer groups, there is some concern that the Payday Lending Rule may be short-lived.

A coalition of consumer groups, called Stop the Debt Trap, warned that some in Congress may attempt to repeal the rule. The group says it will fund an advertising campaign to mobilize consumers to oppose any Congressional roll-back.

College enrollment appears to be inching down, according to a recent report by the National Student Clearinghouse Research Center.

The Center found that Spring 2017 enrollment fell 1.5 percent from Spring 2016. The greatest declines were at for-profit institutions, which have faced increasing regulatory scrutiny. But enrollment also dropped sharply at public community colleges.

There could be a number of reasons for this. In its coverage of the issue, higher education website The Hechinger Report noted a decline in the population of students leaving high school, as well as an increase in the number of would-be graduate students who are opting to join the workforce as the economy slowly recovers.

However, a new survey by COUNTRY Financial suggests another reason: cost.

The survey of college-age consumers asked those who had never attended college their reasons for not attending. Nearly half -- 48 percent -- said the high cost of college was a factor in their decision.

Unwilling to go into debt

Nearly as many -- 47 percent -- said they were unwilling to go into student loan debt to pursue a college degree.

"Student loans have had an impact on the ability of Americans to complete their education," the authors write. "Of those who started but did not complete a post-secondary program, 59 percent said the cost of education factored into their inability to finish their education, and 53 percent said that taking on student debt was also a factor in their incomplete education."

At the same time, the survey suggests there is still a strong respect among young people for the value of a college degree. A large majority agree that "post-secondary education is critical to success."

Some who borrowed money to attend college now appear to have a case of buyer's remorse. Thirty-six percent of those who have taken on student debt to get through school reported they are not confident they'll repay the loans entirely. Among those still working to pay back their student loans, 48 percent said they have missed at least one payment.

“Our survey found the majority of Americans who have missed a student loan payment have not done so because of error or because they forgot. It’s been a lack of money, not a lapse in memory," said Doyle Williams, an executive vice president at COUNTRY Financial.

Alternatives to debt

There are alternatives to piling on debt to attend college. Students who qualify for scholarships and aid can greatly reduce the out-of-pocket expense associated with a college degree.

In addition to federal aid packages, most colleges and universities offer their own aid to students who qualify. Completing the Federal Application for Financial Student Aid (FAFSA) is a key step in taking advantage of both, as many schools use information from a student's FAFSA to allocate their scholarships.

A free app called College Abacus can help students determine their out-of-pocket costs for each college they might be considering.

“Every school uses its own formula to allocate financial aid,” Abigail Seldin, VP of Innovation for ECMC and founder of College Abacus, told ConsumerAffairs in a 2014 interview. “Those individualized net prices are often lower – much lower – than a family's government-calculated estimated family contribution.”

The app can provide a more exact number because it takes into account each college's typical aid packages. Using the tool, Seldin said prospective students sometimes find the school of their choice is less expensive than the alternatives they were considering.

A new survey from Personal Capital has found that 70 percent of Millennial parents (versus 48 percent of parents overall) say they would focus savings on their kid's college education over their own retirement.

However, financial experts warn this is a huge mistake. Accruing the funds needed to help foot the bill for a college education may be a worthy endeavor, but college savings shouldn’t come at the expense of retirement (for which there are no loans, grants, or scholarships).

You don't want to "derail your retirement for your child's college education when they can get a loan or scholarships," certified financial planner Carrie Schwab-Pomerantz told CNBC Make It.

Future repercussions

Pew Research Center defines "Millennials" as those between the ages of 20–36 (this year). According to the Federal Reserve Bank of New York Consumer Credit Panel, the average student loan debt for an individual Millennial is roughly $33,000.

Understandably, parents in this age group may not want to see their children end up in the same financial boat after they graduate, but experts predict funneling savings into a child's college fund instead of retirement will one day put the child in a more difficult spot.

Those who don't save enough money for retirement may end up relying on their adult children, which could end up being an even bigger financial burden than student loans, Schwab-Pomerantz explained.

Instead, the wise move is to help your child take advantage of scholarships, grants, or loans when the time comes – options not available for those moving into retirement.

Take care of yourself first

The study also found that Millennial parents tend to plan for helping out with their children’s housing costs -- 48 percent of participants said they would pay all of their children’s rent costs, and 46 percent said they would pay for a house for their child.

At the end of the day, Millennial parents should remember, “there's no guarantee the kids will take care of them financially or otherwise in their old age," said Lazetta Braxton, CFP and founder of Financial Fountains.

"Be upfront with your kids about how much you can realistically contribute towards college, even if the amount may disappoint them," Braxton told CNBC.

The sooner you have the conversation, the more time kids will have to figure out their own way to pay for college. Your kids might also be happy to know they won’t have to take care of you financially at an age when they may be juggling other financial responsibilities, like taking care of their own families.

Mitsubishi Motors North America is recalling 66,001 model year 2004-2006 Lancers and Lancer Evolutions, and model year 2004 Lancer Sportbacks.

The passenger side front airbag may be susceptible to moisture intrusion which, over time, could cause the inflator to rupture with metal fragments striking the vehicle occupants potentially resulting in serious injury or death.

What to do

Mitsubishi will notify owners, and dealers will replace the front passenger airbag inflator with a different inflator, free of charge. The recall is expected to begin on October 22, 2017.

Owners may contact Mitsubishi customer service at 1-888-648-7820. Mitsubishi's number for this recall is SR-17-001.

Leaders of auto safety groups, along with two U.S. Senators, are urging Congress to make changes to a proposed bill that would establish guidelines for automakers that manufacture autonomous vehicles.

At a news conference in advance of the Senate Commerce Committee's "mark up" of the AV Start Act, Jackie Gillan, president of Advocates for Highway and Auto Safety, said the legislation has serious flaws.

"Unfortunately this bill lacks adequate government oversight and industry accountability," Gillan said. "We're urging the Senate Commerce Committee to make safe and sensible improvements to the bill."

The safety advocates voiced several concerns, but among them is the fact that the AV Start Act gives a greenlight to carmakers to begin turning out self-driving cars for consumers to purchase.

'Ignores recent history'

Joan Claybrook, a former administrator of the National Highway Traffic Safety Administration (NHTSA), said the legislation ignores recent history, including mistakes made by the auto industry.

"It puts auto and tech companies who basically wrote the bill in the driver's seat in the development and deployment of unproven autonomous vehicles," Claybrook said. "It puts the federal auto safety agency in the back seat in terms of ensuring industry accountability."

Sen. Edward Markey (D-Mass.), a member of the Senate Commerce Committee, acknowledged that autonomous vehicles are part of the future, but he worries they will be rushed to market and will create as many problems as they solve.

"[Autonomous vehicles can] pose major safety, as well as privacy and cybersecurity, problems if there are no appropriate safeguards in place," he said.

Amendments to be offered

Markey said he would introduce amendments to the bill to "establish enforceable rules of the road." Fellow Senator Richard Blumenthal (D-Conn.) is concerned the AV Start Act would override state laws that are more strict in their regulation of autonomous vehicles. He says he will also seek an amendment requiring automakers to provide a manual override in all vehicles.

Safety advocates are concerned that the legislation exempts autonomous car makers from many federal safety standards. Currently, only 2,500 vehicles are exempt from Federal Motor Vehicle Safety Standards (FMVSS), since they are being tested. Under the proposed bill, they said that number jumps to 50,000 in the first year and then 100,000 in year three.

Drug laws are stricter

Safety advocates also point out that these exempt vehicles have not yet been proven to be safe. Dr. Steve Hargarten, emergency physician and professor at the Medical College of Wisconsin, says the AV Start Act is nothing like the laws governing new drugs.

"It rushes new technologies to market without adequately balancing public safety and economic motives, or ensuring government oversight of industry progress," he said. "New drugs have to undergo much more vigorous testing."

The groups represented at the news conference agreed that autonomous cars can be a public benefit by reducing the number of traffic accidents caused by human error. But they say the technology has not yet proven itself and that the rules Congress is considering don't go far enough to ensure public safety.

For new mothers, the first weeks after giving birth should be a time of bonding, physical recovery, and potentially navigating breastfeeding challenges. However, economic necessity will push nearly 1 in 4 new mothers back into the workforce within just two weeks of having a baby.

New parents who aren’t lucky enough to get 12 weeks of paid parental leave -- and who can’t afford to take time off -- are faced with the difficult decision of choosing between their careers and time with their infant.

Now, a new maternity leave registry site called Take12 aims to give new parents the financial means to stay home with their baby for a full 12 weeks.

The gift of time

Margi Scott, the founder of Take12, characterizes the site as “crowdfunding meets baby registry.”

Instead of registering for baby gifts and gear, expectant parents can ask visitors to go to their personalized site to donate money to cover various moments of a maternity leave. Friends and family can “purchase” baby snuggles, shower time, a night of sleep, and more.

“Burp cloths and outfits are nice, but time with your baby without going into financial turmoil is nicer,” the Take12 website reads. “Add your Take12 registry to your baby shower invitation and let your friends, family, and co-workers know how they can help you the most.”

The site has a guide to help soon-to-be parents figure out roughly how much money they would need to take 12 weeks of maternity leave. It encourages working moms to take a full 12 weeks, especially if they qualify for the Family and Medical Leave Act.

Maternity leave crisis

In addition to its goal of affording moms the ability to stay home with their baby, Take12 aims to elevate the importance of sufficient family leave.

Research shows mothers who return to work soon after giving birth are less likely to breastfeed and more likely to suffer from depression. Each additional week of paid maternity leave has also been linked to lower infant mortality rates.

While many employers are required to provide 12 weeks of unpaid leave following the birth of a child, many new parents can’t afford to go that long without a paycheck. A mere 13 percent of U.S. private sector workers have access to paid leave through their employer, according to a 2016 report from the Department of Labor.

“I understand the crisis of unpaid maternity leave because I have experienced it three times,” writes Margi Scott, the founder of Take12.

“I am perplexed by the fact that working mothers are some of the most creative, focused, and determined beings I know, yet most of us venture into the transition of maternity leave and the return to work with little to no preparation. As result, we are left feeling defeated, alone, and overwhelmed.”

The Take 12 website plans to expand to allow fathers to register for paternity leave in the future.

Pharmaceutical giant Allergan transferred its patents for the prescription medication Restasis to the Saint Regis Mohawk Tribe, then leased back the rights to sell the drug. 

Native American tribes possess sovereign immunity from reviews under the patent system, so as long as the Tribe owns the drug, it can't be challenged by generic drug makers who could make and sell a cheaper version.

Several Washington lawmakers branded this as a clever scheme to edge out cheaper drugs and exploit tribal sovereign immunity. If the deal is allowed to stand, critics worry that other drug companies will adopt the tactic, leaving consumers with fewer affordable options.

"The deal Allergan struck with the Tribe extends Allergan’s market monopoly on its prescription medication while patients are forced to pay higher and higher prices for their treatments," Sen. Maggie Hassan said in a press release.

According to CNBC, Allergan is already benefiting from this move, as their stock surged after the deal was announced. The company is reportedly paying the Tribe $13.75 million -- plus up to $15 million in additional royalties -- for the exclusive right to market Restasis.

Meanwhile, the Saint Regis Mohawk Tribe has sought to dismiss the challenges to its patents, and is free to the price the drug as it sees fit.

Lawmakers demand investigation

Hassan and fellow senators Richard Blumenthal (D-Conn.), Sherrod Brown (D-Ohio), and Bob Casey (D-Pa.) have written to the chairman of the Senate Judiciary Committee., asking that he direct the panel to investigate the deal.

“It appears that Allergan’s deal with the Tribe exploits the law to thwart review of the Restasis patents, protecting Allergan’s market monopoly – and its profits – at the expense of patients who need the drug,” the lawmakers wrote.

For its part, Allergan is also asking for a Judiciary Committee investigation. It wants Congress to look into the patent challenge system it is accused of exploiting.

This week Sen. Claire McCaskill (D-Mo.)  fired off a letter to the president of the Pharmaceutical Research and Manufacturers of America (PhRMA), to complain about the arrangement.

'Brazen and absurd loophole'

“This is one of the most brazen and absurd loopholes I’ve ever seen, and it should be illegal,” McCaskill wrote. “Given its recent comments regarding corporate responsibility, PhRMA can and should play a role in telling its members that this action isn’t appropriate, and I hope they do that.”

Lawmakers are increasingly sensitive to rising drug prices after a number of large price increases created a consumer backlash in 2016. Mylan Pharmaceuticals was in the hot seat a year ago after it raised the price of its EpiPen auto-injector -- a life-saving allergy antidote -- to $600 for a two-pack.

This year Mylan finalized a settlement with the U.S. Justice Department, which had charged it with violating the False Claims Act by knowingly misclassifying the EpiPen as a generic drug to avoid paying rebates to Medicaid, the government's low-income healthcare program.

In late 2015 the Senate Special Committee on Aging opened hearings into rising drug prices, triggered in part by huge price increases in old drugs.

The hearings focused on perhaps the most infamous case, in which Turing Pharmaceuticals purchased the rights to an old drug called Daraprim, used to treat parasitic infections and, in some cases, HIV. The company immediately raised the price of the drug from $13.50 to $750 a pill.

Money tops the list as one of the leading causes of friction in a relationship. For some married couples, tension stemming from mismatched views about money can even lead to a divorce.

To keep financial disagreements from tearing apart an otherwise healthy relationship, experts say it’s imperative to have honest, regular talks about money before tying the knot. Setting aside time to find out if you share similar goals can help ensure that your marriage starts off on the right financial foot.

Developing joint goals

Recent research shows that couples who argue over finances several times a week are 30 percent more likely to divorce than those who only have arguments about money less than once a month. Younger couples are especially likely to divorce as a result of financial stress.

“So many people, especially in first marriages, never sit down and have a thorough and honest discussion about finances,” explained Christopher Krell, a certified financial planner and expert on personal and family finance.

To keep money-related squabbles from causing problems down the line, Krell says couples should talk through important financial topics before making a lifetime commitment. Figuring out where your partner stands financially is crucial to protecting your marriage from frequent financial disagreements. 

What to talk about

Here are a few tips for talking money before marriage:

• Talk honestly and openly. Talking about money shouldn’t lead to a fight. In order to devise a game plan, it’s critical to have honest talks about money. To glean insight into your partner’s spending habits and behavior, consider asking a question like, "Would you say you’re more of a saver or spender? Why?" The answer to this question can be more telling than hearing how much money your partner has in their savings account.
• Come up with a budget. If one person is a big spender and the other is an inherent saver, conflict can happen in the future. To keep these differences from causing tension later, get organized and come up with a plan for spending and saving. Be sure to factor in all of your assets, debts, and incomes.
• Pay off debt. Krell suggests paying off any credit card debt that you have as quickly as possible. The debt of the person whose interest rate is highest should be chipped away at first, then work your way down to the least expensive interest rates.
• Save for retirement. To help ensure you will be able to retire comfortably, start saving for retirement at the beginning of the marriage. How much and how long you save for retirement are more important than the rate of return on your investments, says Krell.
• Set goals. Make a list of your short and long-term goals and have your partner do the same. Note the differences and similarities, then come together to write down your shared short and long-term goals. Make financial preparations to accomplish those goals.
• Spend money on fun things. Take trips together and spend money on other fun things. “Life inevitably changes after children, so go goof off and do the things that will be more challenging once the blessing of children arrives,” Krell says.

Of the nearly 200 million Americans planning to celebrate Halloween this year, 16 percent will dress their dog or cat in a costume. And this Halloween, Fido and Fluffy might bear a resemblance to one another.

According to the National Retail Federation's 2017 Halloween Spending Survey, dog and cat costumes are popular picks for pets this year. However, pumpkins topped the list as the most popular pet Halloween costume this year.

Hot dog costumes claimed the number 2 spot, with 7 percent of votes. Four percent of the 7,013 consumers surveyed plan on dressing their furry companion as a lion or pirate. Bumblebee and witch costumes may also be prevalent at pet-friendly Halloween celebrations this year.

Most popular pet costumes

Here is the complete list of the most popular pet costumes of 2017:

• Pumpkin

• Hot dog

• Dog, lion or pirate

• Bumblebee

• Devil

• Batman character

• Ghost

• Cat

• Witch

• Star Wars character

Costume safety tips

If you dress your pet in costume this year, experts say it’s important to remember a few safety tips. Make sure your pet’s costume is safe, comfortable, and nonrestrictive. You should be able to slip two fingers around the neck and arms, just like a collar.

Additionally, keep your pet’s needs first. If your pet seems anxious or uncomfortable while wearing a costume, it may be best to take it off.

"Watch out for any signs of stress or anxiety when you put a costume on your pet,” Dr. Louise Murray, vice president of the ASPCA Animal Hospital, told Care.com.

“If your pet hates her costume, don't force her to wear it! A nice orange bandana or bow tie is a happy alternative to a full-fledged costume,” she added.

Equifax says consumers concerned about the company's massive data breach will be able to freeze and unfreeze their credit at will and not pay a fee.

In his testimony before a House subcommittee Tuesday, former Equifax CEO Richard Smith listed the new tool among other free remediation tools the company is providing to consumers to help them protect their identity, but he did not elaborate on it.

A credit freeze prevents anyone from accessing a consumer's credit report, so an identity thief who has stolen the victim's Social Security number and other identifying information would be unable to open a fraudulent credit account because the lender would be unable to pull the credit file.

The credit file could only be unfrozen with the consumer's permission, making the credit freeze among the strongest identity theft prevention measures that can be taken. Normally, the consumer pays a fee to freeze the credit file and another fee when it is unfrozen.

Equifax has disclosed few details of the tool, other than to say it hopes to have it available by the end of January. In an email to ConsumerAffairs, a company spokespereson said additional details would be provided closer to the launch date.

Different opinions

Security and identity theft experts have different opinions about whether a simple, easy-to-use tool to freeze and unfreeze credit is a good idea. Some have backed the idea, saying that hackers will have a harder time stealing identities if more consumers are freezing their credit files.

But Eva Valasquez, CEO of the Identity Theft Resource Center (ITRC), thinks the process should not be so simple and quick that it becomes vulnerable to hacks.

"I hope that the solution that industry proposes is not more automated technology," Valasquez told ConsumerAffairs in an interview last month. "Because the process of establishing who you are goes through several steps, and we should appreciate that it's going to take a little longer."

Whatever form the freeze tool takes, it won't be a complete solution. That's because it will only freeze one credit file -- the one managed by Equifax. Consumers also have credit files with the two other credit bureaus, Experian and TransUnion.

There will still be fees to freeze and unfreeze those files. Valasquez says ITRC has launched an online petition urging Experian and TransUnion to also waive fees when consumers freeze and unfreeze their credit reports.

In the aftermath of a senseless tragedy, such as the recent mass shooting in Las Vegas, parents and caregivers are faced with the difficult task of talking to children about what happened and reassuring them that they are safe.

While exposure to information about the tragedy should ideally be limited (especially for children under 8), it’s not always possible to shield children from all the details of a major crisis.

Questions and fears can arise when children see frightening images on TV, social media, or when they hear their peers talking about the tragedy. It’s a parent’s job to filter information about the tragedy and answer any questions kids might have.

Addressing children’s concerns

What to say to children depends on their age and developmental stage, but recommendations from the American Academy of Pediatrics (AAP) state that parents should begin conversations with children of all ages the same way: by asking what they have already heard.

More often than not, kids will have heard something about the tragedy. The first step towards helping them cope with the news is to answer any questions they have in an honest, straightforward manner. Let your child’s answers and reactions guide your discussion.

Your child’s age will affect how they process the information. Older children, teens, and young adults might ask more questions and benefit from additional information. In conversations with children of all ages, it’s best to avoid dwelling on the scale or scope of the tragedy.

Conversations vary by age

Here are a few tips for talking to children in different age ranges about a tragedy:

• Preschool age. For very young children, the tragedy does not need to be brought up unless they have heard something about it first. If they have, get down to your child’s eye level and speak in a calm and gentle voice while answering any questions that might be on their mind.
• Elementary school age. This is an age range when parents should share basic details about the tragedy and make sure children know they can come to them with questions. Make a point of reassuring children that they are truly safe.
• Middle and high school age. Older children can be given more detailed information about the tragedy and recovery efforts. Figure out what may be bothering them and address any safety concerns. Discuss what your family does to keep each other safe as well as what communities do to keep people safe.

‘Look for the helpers’

When a tragedy occurs, it can also be helpful to remind children of the words of television personality Fred Rogers, who explained how his mother used to make him feel safe in a scary world.

“Always look for the helpers,’ she’d tell me. ‘There’s always someone who is trying to help.’ I did, and I came to see that the world is full of doctors and nurses, police and firemen, volunteers, neighbors and friends who are ready to jump in to help when things go wrong," said Rogers.

The Fred Rogers organization has a part of their website dedicated to helping children understand the images they see on TV and online. It can be viewed here.

A new study suggests that magnetic resonance imaging (MRI) scans could be used to identify signs of an autism spectrum disorder (ASD) within a baby’s first year of life.

Symptoms associated with these disorders normally don’t manifest until after infants are at least a year old, but the researchers say these scans may provide a noninvasive method for detecting autism at its earliest stages, when interventions may be the most beneficial.

“Behaviors in the first year or even first year and a half are not good predictors of who will develop autism, but in our…study we found that using MRI scans from 6 and 12 months could predict with high accuracy…8 out of 10 infants who would go on to meet criteria for autism at 24 months of age,” said senior author Dr. Joseph Piven.

Determining autism risk

Experts estimate that as many as 1 in 5 infants who have an older sibling with ASD will also go on to develop the condition themselves, while only 1 in 100 infants in the general population are at risk. Piven points out that providing scans for these at-risk infants can help detect autism early on and jump-start interventions before brain changes associated with the disease become solidified.

“I believe that most parents with a newborn and an older child with autism would be very willing to do a single scan—during natural sleep—in their baby to determine their risk for autism,” he said.

Researchers have long pointed out that early assessment of autism is the key to providing timely therapeutic interventions. Piven says that further research will be needed to discover additional risk factors to help speed up these diagnoses.

A Canadian security firm warns that just because your antivirus scans turn up no threats, it doesn't always mean your system is clean.

Toronto-based Akouto says it has found a sharp increase in new strains of malware capable of slipping past most off-the-shelf security software. The majority of the attacks, it says, are aimed at stealing bank information and enabling hackers to make unauthorized withdrawals.

The malware, known as the Heodo Banking Trojan, was first detected back in March. The hackers who created it designed it to steal passwords and online banking log-in information so they could then transfer money from the victims to themselves.

Computers get infected when a user clicks on a link or PDF that is disguised as some type of important document, such as an invoice. Since it arrives in an email that appears to be from a known contact, targets are more likely to click on it.

Uses contacts to spread the malware

If they do, the Trojan searches the victim's contacts and copies other email addresses. This allows it to send messages that appear to come from the victim and quickly spread the malware.

If the infected computer is connected to a network, it will also infect connected devices by exploiting a flaw in how the computers share information.

"The creators of this malware spliced the code of a Trojan with that of a Worm to create a hybrid capable of stealing information, self-replicating and mutating," Dominic Chorafakis, Akouto's founder, told ConsumerAffairs.

Chorafakis says the malware uses its Trojan DNA to collect sensitive information from the victims that is transmitted back to the hackers.

"Using its Worm DNA it burrows through networks spreading to other computers, stealing more information and spreading even further," Chorafakis said.

Hard to detect

Unfortunately, this hybrid is hard to detect. Chorafakis says it uses something called a crypter that shields it from antivirus products. Undetected, it embeds itself in other software on the infected computer, setting up links back to command-and-control servers to download additional instructions, all the while making mutated copies of itself on the infected system.

Most of Akouto's work is directed at helping business clients, but Chorafakis says this mutant malware also poses a threat to individual computer users.

"The majority of attacks are not at all selective," he said. "Hackers cast a wide net to infect as many systems as possible with the goal of encrypting the user’s files for ransom, stealing banking and credit card information, or turning the computer into a zombie that secretly joins a Botnet."

Even though this particular malware was able to slip past standard antivirus software, Chorafakis says all computer users should install an antivirus program and keep it up to date. If malware manages to initially evade detection, Chorafakis says it's only a matter of time before antivirus vendors update their software, which will then be able to detect and remove the malware.

Chorafakis says consumers can also protect themselves by learning about cyber threats and how to avoid them. He suggests keeping all software up-to-date and backing up important files.

In today's world, he says, it's not a matter of if your computer will be infected, but when.

Equifax has announced the results of a review which show that more consumers may have been caught up in last month's massive data breach.

The revised estimate includes an additional 2.5 million U.S. consumers, bringing the total number of potentially exposed people to 145.5 million. Cybersecurity firm Mandiant -- which conducted the review – said that it found no evidence of new or additional hacker activity, and that the revised number was reached through a forensic investigation and quality assurance procedures.

“I was advised Sunday that the analysis of the number of consumers potentially impacted by the cybersecurity incident has been completed, and I directed the results be promptly released,” said Equifax interim CEO Paulino do Rego Barros, Jr.

“Our priorities are transparency and improving support for consumers. I will continue to monitor our progress on a daily basis.”

Fewer international consumers affected

While millions of additional U.S. consumers may have been affected by the breach, the review found no evidence that hackers accessed databases outside the U.S., which nixes previous estimates that as many as 100,000 Canadian citizens had been impacted.

Instead, Mandiant says that approximately 8,000 Canadian consumers may have been impacted by the breach due to affected credit cards. Equifax says that it will be mailing written notices to all of these consumers.

Additionally, Equifax says that an investigation into how many United Kingdom consumers were affected by the breach is being analyzed in the United Kingdom.

“I want to apologize again to all impacted consumers. As this important phase of our work is now completed, we continue to take numerous steps to review and enhance our cybersecurity practices,” said Barros. “We also continue to work closely with our internal team and outside advisors to implement and accelerate long-term security improvements.” 

An annual survey by the National Retail Federation shows that consumers will spend a record $9.1 billion on Halloween this year, up 8.3 percent from last year.

Consumers will spend an average of $86.13 on costumes, candy, and other holiday staples -- up 20 cents from last year -- and 179 million are expected to partake in Halloween festivities, up 8 million from 2016.

Only 12.9 percent say the economy will affect their spending, compared with 14.1 percent last year and a peak of 32.1 percent in 2011.

How they'll spend

According to the survey, 69 percent of Halloween shoppers say they'll buy costumes ($3.4 billion), 95 percent will buy candy ($2.7 billion), 72 percent will buy decorations ($2.7 billion), and 37 percent will buy a card ($410 million).

Overall, the researchers say 71 percent of Halloween celebrants plan to hand out candy, 49 percent will decorate their home or yard, and 48 percent will wear a costume.

Additionally, 46 percent plan to carve a pumpkin, 35 percent will throw or go to a party, 31 percent will take their kids trick-or-treating, 23 percent will visit a haunted house, and 16 percent will dress their pets in costumes.

Where they'll shop

Discount stores are still king when it comes to buying costumes and other Halloween supplies, with 47 percent of shoppers saying they''ll go there.

Another 38 percent say they'll patronize a specialty Halloween store or costume store, 25 percent will shop at supermarkets, 24 percent will buy at department stores, and 22 percent will do their business online.

A coalition of 39 attorneys general sent a letter to congressional leaders today asking them to support a federal bill that would increase citizens’ access to drug addiction treatment.

The signees say that congressional support of H.R. 2938 – titled the “Road to Recovery Act” -- would help address the nationwide opioid epidemic, which has continued to swell to new levels of crisis as more and more people die from drug overdose.

“As state attorneys general, our offices are on the frontlines of the opioid epidemic. We write today in bipartisan support of HR 2938 (“Road to Recovery Act”), which will expand a key tool in this battle,” the attorneys general said.

A growing opioid epidemic

The coalition points to statistics which show that addiction to prescription pain relievers has ramped up in recent years. Drug overdoses claimed 65,000 American lives in 2016 alone, an increase of 24 percent from 2015.

Other recent studies have shown that opioid-related poisonings contributed to an overall loss of 0.21 years in life expectancy from 2000 to 2015. Today, more than 2.5 million Americans suffer from opioid use disorder.

“We cannot arrest our way out of this problem, because it is not just a public safety challenge – it is a public health challenge as well. People often develop opioid addiction through prescribed medical usage, with no intent by the patient to engage in abusive behavior, simply because of the addictive properties of opioid drugs,” the coalition said.

“Drug addiction is a disease, not a crime. If we truly want to end this crisis, we need to focus on its root causes, including a lack of treatment for those suffering from addiction.”

Every treatment option needed

The attorneys general say the “Road to Recovery Act” will remove the current restriction that bars Medicaid from funding in-patient drug treatment, while retaining it for mental health institutions. The bill will also make treatment more affordable to those who need it and provide a provision for children to access drug treatment.

“If we have any hope of reversing [the opioid epidemic], we need every treatment option at our disposal. Therefore, we respectfully ask you to work to ensure the passage of HR 2938 to help us fight this epidemic,” the attorneys general conclude.

The letter was addressed to Speaker of the House Paul Ryan, Minority Leader Nancy Pelosi, Majority Leader Kevin McCarthy, Minority Whip Steny Hoyer, and to Greg Walden and Frank Pallone, the chair and ranking member of the Energy and Commerce Committee, respectively.

The 2018-2019 free application for federal student aid (FAFSA) submission window is open as of October 1, with roughly $120 billion in federal student aid up for grabs.

Filling out the FAFSA form can be a tedious process, often requiring the assistance of parents or guardians. For parents, experts at student loan company Sallie Mae have a few tips to avoid running into issues.

They recommend filing a new FAFSA application each year -- first as a high school senior and in every subsequent year of college and graduate school -- “regardless of whether you think you will qualify for funding.”

A student's eligibility and amount they qualify for can vary year-over-year.

FAFSA tips

To complete a FAFSA application students and their families should:

• Gather information. Before starting the application, parents and students should create a username and password (a Federal Student Aid ID) and gather Social Security numbers, driver’s license numbers, bank statements, 2016 tax returns, and W-2 forms.

• Be an early bird. Because some financial aid is doled out on a first-come, first served basis, completing the form early can boost your chance of getting that aid. Submitting the FAFSA soon after October 1 can also expedite financial aid from your student's school.

• Use the IRS Data Retrieval Tool. The IRS Data Retrieval Tool can help you import and convert tax information directly into the FAFSA.

• Watch out for imposters. The only way to fill out a FAFSA is at fafsa.gov. Beware of sites that charge a fee or make promises that sound too good to be true. To reduce the risk of identity theft, keep your Federal Student Aid ID confidential.

• List at least one school. Families should list at least one school on the FAFSA. Some state aid is based on the order of how schools are listed, so consider listing state schools first to be in line for state aid. If your child is applying to more than ten schools, follow this process.

What happens next

After you have completed the application, you will get a Student Aid Report summarizing your form. This will give you a chance to modify your application and correct any errors. 

Once your student is accepted by a college, you must then decide whether to accept your aid package. Make sure you know which type of aid you're getting (if it's a grant or a aid requiring reimbursement). Read up on all the terms and commitments that come with each form of assistance. For more tips on accepting aid, click here.

Additional information is available at studentaid.ed.gov/sa/fafsa.