Current Events in February 2018

President Trump has introduced a plan to spend $1.5 trillion to repair and improve the nation's infrastructure. The long-expected plan is part of the administration's budget proposal, released Monday in Washington.

According to the plan, only $200 billion of the total would come directly from the federal Treasury. Rather, state and local governments -- along with the private sector -- would supply most of the money.

The White House is pushing much of the cost onto states because it has already committed to significant deficit increases in the spending bill Congress passed a week ago. However, it would give the states broader power to find the money, causing at least one interest group to express alarm.

'Flexibility to toll existing interstates'

The Alliance for Toll-Free Interstates (ATFI) says the infrastructure plan calls for "providing states flexibility to toll existing interstates." That, it says, would result in toll booths popping up on the nation's interstate highways.

"Tolls are a wildly inefficient tax, sacrificing money that could go toward construction to corporate profits and administrative costs," said Stephanie Kane, an ATFI spokeswoman.

"In addition to the diversion onto secondary roads which causes congestion and public safety issues, tolls will do unimaginable harm to businesses, as shipping and manufacturing prices skyrocket to account for these new costs."

The group also says the imposition of interstate highway tolls shifts a large part of the cost of infrastructure to consumers.

Impact the cost of moving goods

Rich McArdle, President of UPS Freight, says placing tolls on interstate highways would increase the cost of doing business for everyone -- including consumers who order things online.

“Companies that move goods, such as UPS, rely upon the unrestricted flow of goods on interstates to move freight throughout the country. Nationwide tolls will dramatically impact the cost of moving goods, and ultimately consumers will pay a higher price," McArdle said.

According to the Federal Highway Administration's Bureau of Public Roads (BPR), the government originally rejected the idea of paying for interstate highways through tolls, believing that motorists would avoid the highways.

Later, it allowed the incorporation of existing toll roads into the federal government's Interstate Highway System. However, Congress has not allowed tolls to be placed on existing federal roadways since many lawmakers see it as paying twice to build a highway.

A California lawsuit has produced testimony that seems to confirm what many health insurance policyholders have long suspected.

In a deposition for a suit filed by a college student, the former medical director for Aetna revealed that he never looked at a patient's medical records before deciding whether to approve care.

The plaintiff in the case, 21 year-old Gillen Washington, said he was denied coverage for an infusion of intravenous immunoglobulin, which is used to treat a severe immune disorder. He is suing the health insurer in California state court.

CNN, citing a transcript from the case, quotes Dr. Jay Ken Iinuma, who served as Aetna's medical director for Southern California, as saying he always followed Aetna's training in these matters, which he said called for nurses to review the records and make recommendations to him.

California Insurance Commission investigating

However, that policy may not meet the standards of the state of California. CNN said it provided the deposition transcript to California Insurance Commissioner Dave Jones, who reacted by launching an investigation.

“If the health insurer is making decisions to deny coverage without a physician actually ever reviewing medical records, that’s of significant concern to me as insurance commissioner in California—and potentially a violation of law,” Jones told CNN.

According to the network, the court testimony also revealed that Iinuma knew little about the medical condition for which treatment was sought and was unaware of how best to treat it.

Company response

In a statement to CNN, Aetna said it looks forward to explaining its clinical review process for California regulators. It said its medical directors take their responsibilities seriously but also “work collaboratively with our nurses.”

Health insurance policies generally state the coverage they provide, spelling out what they cover. However, the insurance companies have discretion when the treatment is deemed "a medical necessity" rather than a covered benefit.

According to FamilyDoctor.org, a medical necessity is something the patient's doctor believes is necessary, whether it's covered or not.

Gillem's suit claims the requested treatment was covered by his Aetna policy and alleges the company's "reckless withholding of benefits almost killed him." Aetna denies that charge, saying Washington did not comply with its request for new blood work before it approved the treatment.

Cybersecurity has two new black eyes today as more than 4,000 sites -- including some belonging to U.S., Australian, and UK government agencies -- were hacked by digital pickpockets looking for cryptocurrency.

At the same time, a little-known Italian cryptocurrency exchange says it was burgled and lost about $195 million worth of its customers’ cryptocurrency.

In the first incident, which was discovered on Sunday, cyber-burglars turned sites upside down using a plug-in called “Browsealoud” in an effort to shake out the digital currency “Monero.”

What happened?

In layman’s terms, hackers used sites to push code to people’s web browsers which, in turn, went on a mining expedition for cryptocurrencies and sent that “money” back to the hackers.

The cyberthieves took no prisoners. Among the sites hit were the U.S. Courts, the State of Indiana, the City University of New York, the Cook County (Chicago) Treasurer’s office, Avon Products’ Brazilian site, and a laundry list of UK, European, and Australian government, municipal, educational, and medical institutions.

BrowseAloud is an internet-assistive technology which helps people with sight, dyslexia, or literacy issues. It’s a product of Texthelp, a UK-based company and a partner with Microsoft, Google, Apple, HP, Adobe, and others in developing language tools. Hackers were able to use the technology software to enter customers’ computer CPU (central processing unit) in a bid to generate cryptocurrency.

“In light of other recent cyber attacks all over the world, we have been preparing for such an incident for the last year,” said Martin McKay, Texthelp’s CTO and Data Security Officer. “Our data security action plan was actioned straight away and was effective, the risk was mitigated for all customers within a period of four hours.”

Although the breach only lasted four hours, Texthelp has temporarily disabled the service until February 13, 2018 as a precaution. The company stresses that hackers were not able to extort money from its customers.

Information security consultant Scott Helme, who discovered the hack, called the scheme a “very lucrative proposal” and pointed out that the domino effect could have been huge.

“They infect one website and it infects close to 5,000. They could have extracted personal data, stolen information or installed malware. It was only limited by the hackers’ imaginations,” he told the BBC.

Cryptocurrency exchange also takes a $195 million hit

In late January, a Japanese exchange said it was missing close to $400 million of “NEM” currency.

Now, in a separate incident, an Italian cryptocurrency exchange called BitGrail specializing in a digital currency called “Nano,” (previously known as “RaiBlocks”) claims they were raided for $195 million late last week.

According to Fortune, BitGrail’s founder Francesco “The Bomber” Firano says he discovered 17,000,000 Nano coins had been pilfered by hackers.

However, not everyone is buying Firano’s cry of wolf. A report from the Merkle cites an official statement from the Nano core team that says Firano asked it to alter the ledger and restore the funds stolen from BitGrail.

The Nano core team would have nothing to do with Firano’s notion and flatly rejected his request. In their way of thinking, BitGrail is an independent business and responsible for its funds and operations.

The group even went so far to say they believe Firano has been misleading them and the cryptocurrency community “regarding the solvency of the BitGrail exchange for a significant period of time.”

The Merkle had already raised suspicions that BitGrail was angling towards an “exit scam,” and the price of Nano dropped by 20% on the news. Its ride from $0.25 on December 1, 2017 to $33.01 on January 5 has taken a sharp downward turn to $9.55 as of February 12, 2018.

Takata has reached a settlement with its creditors, auto industry clients, and representatives for drivers who were injured or killed by its faulty airbags.

The settlement could pave the way for Takata -- whose airbags have been linked to the deaths of at least 21 people -- to end its Chapter 11 bankruptcy and sell its viable operations to a Chinese-owned rival, according to court papers filed on Saturday.

After it was found that the airbags can rupture with too much force, sending bits of metal flying through the vehicle cabin, Takata found itself at the center of what the NHTSA has called "the largest and most complex safety recall in U.S. history."

The massive recall forced the company’s United States unit, TK Holdings, into bankruptcy.

Trust established

The Japanese company settled with the two main groups representing victims of its faulty air bags. The deal includes establishing a trust to pay out claims to injured victims or the families of those who were killed by a Takata airbag.

Compensation will range from $10,000 for minor injuries to $5 million for severe injuries (including blindness) or death, Reuters reports.

The 13 automakers that have joined the agreement include General Motors, Ford Motor, Toyota Motor, and the United States affiliates of Honda Motor, and Volkswagen AG.

Central to Takata’s restructuring plan is the sale of its remaining assets. Key Safety Systems plans to pay $1.6 billion to acquire the company’s remaining U.S. operations.

Cars with the company’s defective inflators have been on the market for more than a decade. As of December, more than half of the nearly 42 million airbag inflators identified as defective had still not been replaced.

Following weeks of charges that the Consumer Financial Protection Bureau (CFPB) is shifting its mission away from aggressively protecting consumers' financial interests, its new director says it's true. Sort of.

Appearing on CBS' Face the Nation Sunday, CFPB acting director Mick Mulvaney said his agency, established under the Dodd Frank financial reform legislation, would seek to enforce the law and nothing more.

“We’re not pushing the envelope,” Mulvaney said.” “We’re taking a different attitude toward the job, but the priorities have not changed.”

Mulvaney charged that the agency under the Obama Administration did "push the envelope," also calling it the federal government's most unaccountable agency.

“We want to run that place with a good deal of humility and prudence,” he said.

The CFPB was established over Republican opposition to protect consumers from abusive financial practices. Since its establishment, it has taken action against credit card, auto loan, student loan, and payday lenders.

NPR investigation

Mulvaney's public comments on the mission of the CFPB came just ahead of an NPR investigative report quoting anonymous sources inside the agency as saying the director is making "radical" changes to the CFPB.

The public radio network said it obtained an internal CFPB memo saying the agency will outline a new strategic plan that will require it to "fulfill its statutory responsibilities but go no further." It also said CFPB should be "acting with humility and moderation," words Mulvaney used in the CBS interview.

NPR also quotes unnamed staffers, who spoke anonymously for fear of losing their jobs, as saying CFPB has decided to drop a lawsuit against Golden Valley Lending, an online lender. The suit alleged that Golden Valley charged borrowers up to 950 percent interest.

Unhappy consumer advocates

Consumer advocates, who have championed the CFPB since its founding, have been highly critical of the agency under Mulvaney's leadership.

"The CFPB is now being led by someone who tried to eliminate the agency when he was in Congress, as OMB Director authored a budget calling for the defunding of the agency, and in his presumed role as director said 'other agencies can do this job well if not more effectively,'” Melissa Stegman, senior policy counsel at the Center for Responsible Lending, told us last month.

Also in January, the progressive blog Think Progress pointed to a not-so-subtle change to the agency's mission statement at the end of every press release, which said CFPB would now "identify and address outdated and burdensome regulations."

Last week, Reuters reported that the CFPB is backing away from a full-scale investigation of last year's massive Equifax data breach. In that hack, the credit files of more than 145 million consumers were compromised.

Husqvarna Consumer Outdoor Products N.A. of Charlotte, N.C., is recalling about 7,100 residential zero turn riding mowers.

An incorrect routing of the fuel line can cause it to wear and leak, posing a fire hazard.

No incidents or injuries have been reported.

This recall involves Husqvarna and Poulan Pro brand residential zero turn riding mowers with a Briggs & Stratton twin cylinder engine sold in orange/black and yellow/black.

On the Husqvarna models, “Husqvarna” is printed on the side of the mowers. On the Poulan Pro models, “Poulan Pro” is printed on the front of the mower.

The model number and serial number are printed on the left-hand rail frame in front of the left rear drive wheel.

The following models are included in the recall.

The mowers, manufactured in the U.S., were sold at Badcock & More, Lowe’s and other home centers, hardware stores, and Husqvarna Equipment Dealers nationwide and on online at Badcock.com, Lowes.com and other websites from July 2017, through December 2017, for between $2,500 and $3,000.

What to do

Consumers should immediately stop using the recalled zero turn mowers and contact Husqvarna to arrange for a free inspection and repair.

Consumers may contact Husqvarna toll-free at 877-257-6921 from 8 a.m. to 6 p.m. (ET) Monday through Friday, by email at recalls@husqvarna.com or online at www.husqvarna.com and click on “Product Recall” for more information.

American Honda Motor Co. is recalling 471 model year 2017 Clarity Fuel Cell vehicles.

The fuel cell control unit (FC-ECU) may misinterpret a small cell voltage drop, causing the vehicle to have reduced or a complete loss of power, increasing the risk of a crash.

What to do

Honda will notify owners, and dealers will install a software update, free of charge.

The recall is expected to begin February 26, 2018.

Owners may contact Honda customer service at 1-888-234-2138. Honda's number for this recall is R0L.

A trial over competing claims to self-driving car technology ended abruptly Friday as litigants Uber and Waymo agreed to a settlement.

Uber, the ride-hailing service, will pay Waymo, a self-driving car technology firm owned by Google, a reported $245 million in Uber stock.

The trial presented opposing versions of how Uber developed its self-driving car technology, which it is currently testing. Attorneys for Waymo claimed that Uber saw Google’s technology as a threat and wanted to catch up by any means necessary. To do this, Waymo attorneys claimed Uber tried to steal Waymo’s trade secrets.

"They decided to win at all costs," Waymo attorney Charles Verhoeven told the jury on Monday. Uber’s former CEO "Travis Kalanick made a decision that winning was more important than obeying the law."

Uber attorney Bill Carmody called the accusations “quite a story” and argued that it’s not clear that Uber ever recieved or used the eight alleged trade secrets Waymo asserted that it had received. He also argued that it’s not clear if the trade secrets are actually trade secrets.

Resolved their differences

The two companies now seem to have resolved their differences. In an online post, Uber CEO Dana Khosrowshahi expressed regret that the argument had to resort to litigation.

"To our friends at Alphabet: we are partners, you are an important investor in Uber, and we share a deep belief in the power of technology to change people’s lives for the better," Khosrowshahi wrote. "Of course, we are also competitors. And while we won’t agree on everything going forward, we agree that Uber’s acquisition of Otto (self-driving technology) could and should have been handled differently."

Waymo had charged Anthony Levandowski, an engineer who formerly worked with both Uber and Waymo, of making off with 14,000 "highly confidential" files from Waymo that helped Uber develop its own technology.

Khosrowshahi says he does not believe that any trade secrets made their way from Waymo to Uber, or that Uber used any of Waymo’s proprietary information in its self-driving technology.

If it connects to the internet, it’s vulnerable to hacking. That’s the ongoing message that cyber-security experts have been giving, which may not seem particularly helpful knowing that everything connects to the internet.

But breaches aren’t inevitable. Corporations like Equifax could have protected their customer’s data through encryption (but didn’t), and consumers can avoid potential high-risk devices and services or take additional precautions when they do.

Below is a list of the obvious, the frightening, and the absurd things recently reported to be at risk of getting hacked.

Winter Olympics

The Department of Homeland Security issued a warning to Americans in Pyeongchang to be mindful of so-called “cyber activists” and cyber criminals.

“At high-profile events, cyber activists may take advantage of the large audience to spread their message,” the warning says.  “Cyber criminals may attempt to steal personally identifiable information or harvest users’ credentials for financial gain. There is also the possibility that mobile or other communications will be monitored.”

The agency advises Americans watching the games in person to switch off their Wifi and Bluetooth connections when not in use, avoid using password-only websites on public wireless networks, regularly update mobile software, and create strong passwords, which is about the same advice security experts have already been giving consumers.

Televisions

Has a ghost been turning on your television in the middle of the night? Maybe it’s just a bored teenager taunting you from his basement.

Consumer Reports found that Samsung  television sets, Roku devices, and other smart TVs could be easily manipulated thousands of miles away by “a relatively unsophisticated hacker,” according to their review of security features on the devices.

While owners of smart TVs can change their settings to improve security, they can’t escape the risk of a hack altogether. Even agreeing to the device’s privacy policies and terms of service, a necessary step in using it, triggers “a significant amount of data collection.”

Passport numbers

The Equifax hack was even worse than the credit agency has been letting on, according to an investigative report published by Sen Elizabeth Warren (D-Mass).

Warren charged Wednesday that Equifax had failed to reveal numerous other security breaches, noting one instance in which an unknown number of passport numbers were accessed by hackers. It was a claim that Equifax quickly denied in news reports.

But after The New York Post obtained a copy of a letter Equifax sent the senator, admitting as such, the company clarified its position. An Equifax spokesperson told the Post that “the easiest way to understand this is that there was a field labeled passports with no actual data in it.”

The spokesperson denied that any passport numbers were actually stolen.

Smart vibrators

Researchers at SEC Consult found that a smart sex toy called Vibratissimo, which connects to smartphones via bluetooth, could be easily hacked via a “quick control” feature that allows use of the toy remotely.

SEC Consult also reported that passwords and other sensitive data could be stolen through the product’s accompanying online application, which ZDNet reports has as many as 100,000 users.

This is apparently an ongoing problem plaguing the smart sex toy industry. A PornHub-sponsored project called the Internet of Dongs is currently attempting to study all “smart” sex toys to look for potential security flaws.

The stock market has taken investors on a wild ride in the past week as stock prices have plunged, giving up all their gains achieved so far in 2018.

The carnage began last Friday, when the government reported a 2.9 percent jump in average hourly earnings in December. That normally good news sent shivers through the bond market, suggesting that wage inflation could be just around the corner. Bond yields, an indicator of interest rates, shot higher.

The Dow Jones Industrial Average, which closed at 26,306 the previous day -- February 1 -- has engaged in wild intraday swings ever since, closing 1,000 points lower at 23,860 Thursday, a loss of nine percent in a week. It's now 949 points lower than where it began the year.

Back to normal

Economist Joel Naroff, of Naroff Economic Advisors, is telling clients that the stock market has finally begun to behave normally again.

"Over the past two years, the NASDAQ had surged 76 percent, the Dow jumped 70 percent and the S&P 500 Index increased 57 percent," Naroff said. "In other words, the equity markets skyrocketed and until the past week, there were no extended down moves."

The economy currently shows signs of strength and corporate earnings are described as spectacular. But Naroff says most of the time the markets were achieving record highs, the economy was just so-so.

"Was it really reasonable to believe the huge stock price rise could continue without any correction?" he asked.

Keep it in perspective

Greg McBride, chief financial analyst at BankRate, says it is important for the average investor, who may have their retirement savings in stocks, to keep the current selloff in perspective.

“The latest decline takes us back to where we were November 17 last year," McBride said. "We’ve just given back some recent gains, not wiped out anyone’s life savings. If you put $100 into the market at the January 26 peak, you’d still have $90.”

McBride says it might be natural to wonder if there's been a fundamental change in the economy when the market sells off like this. But he says nothing is wrong economically, there's just some healthy, overdue price adjustments taking place.

But Naroff sees some economic factors ahead that he says will likely continue to affect stocks. Steep tax cuts and increases in government spending, along with a tightening labor market, could bring on inflation sooner rather than later. Because of that, he expects the stock market to remain a turbulent place for weeks to come.

Drowsy drivers are causing more vehicle crashes in the U.S. than previously estimated, according to a new AAA study.

An analysis of dash-cam video recordings of nearly 3,600 hundred drivers over a period of several months allowed researchers to analyze each driver’s face during the three minutes before the crash.

During this time, participating drivers were involved in 700 hundred accidents. Based on the percentage of time the person’s eyes were closed in the moments leading up the crash, the researchers found that 9.5 percent of all crashes involved tired drivers.

Previous federal estimates had indicated that drowsiness is a factor in only one to two percent of crashes.

Negative impact on motor skills

"Drowsy driving is a bigger traffic safety issue than federal estimates show," said Dr. David Yang, executive director for the AAA Foundation for Traffic Safety. “Drivers who don’t get enough sleep are putting everyone on the road at risk.”

Videos released by AAA show drivers who nodded off for a few seconds and veered into oncoming traffic, drifted out of lane, or ran off the road.

Drowsiness impairs driving performance and reaction time, which can heighten the risk of a serious accident, says Mike Sample, lead driving safety expert and technical consultant at Liberty Mutual Insurance.

“When our brains are tired, our attention, judgment and ability to act are greatly impacted, which has the potential for disaster on the road, particularly if there’s inclement weather or a critical situation requiring quick response,” Sample told ConsumerAffairs.

Avoiding drowsy driving

The Centers for Disease Control and Prevention estimates that 35 percent of U.S. drivers sleep less than the recommended minimum of seven hours daily.

Missing a few hours of sleep may not seem like a major issue, but missing two to three hours of sleep can more than quadruple your risk for a crash, which is comparable to crash rates for driving drunk.

Before driving, experts say it’s critical to evaluate whether your level of fatigue may affect your ability to drive safely. Some warning signs of drowsy driving include:

• Having trouble staying focused on the road or keeping your eyes open

• Constantly yawning

• Drifting from your lane

• Having to turn up the radio or roll down the window to stay focused

• Not remembering the last few miles driven

“If you notice any of these signs while driving, you should get off the road and take a power nap, drink some caffeine (although you shouldn't rely on caffeine for too long), do some jumping jacks in a parking lot, or let someone else drive,” Sample said.

Prioritizing sleep is especially important if you’ll be hitting the road for a long drive. Aim to get consistently good sleep for several days before a long road trip, and consider driving with a partner.

“On long trips, it’s safest to drive with a partner,” Sample said. “Pull over every 2 hours and switch drivers. Keep the conversation lively, talking stimulates the mind and keeps both individuals alert.”

The source code to a key piece of iPhone software was recently published on the hosting site Github, the site Motherboard reported,  in what one security researcher described as the “biggest leak in history.”

An unknown  leaker published the entire source code that powers iBoot, the software that is behind Apple's iOS mobile operating system. After Motherboard initially reported on the leak, Apple successfully had the code removed via a Digital Millennium Copyright Request.

But in that request, Apple also indirectly confirmed that the code was legitimate. The breach creates what tech sites say is a potential security nightmare for customers and the company.  

It’s not the first time that someone has posted iBoot’s code online; Motherboard also discovered that the code was published to the site Reddit by a user named “apple_internals” last year.

“iBoot is the one component Apple has been holding on to, still encrypting its 64-bit image,” security expert Jonathan Levin told Motherboard. “And now it’s wide open in source code form.”

With access to the iPhone’s source code, experts warn that criminals may be able to more easily hack into consumers’ phones remotely.

How to tell if your phone was hacked

Consumers who suspect they have been hacked should be on the lookout for any apps that they don’t remember downloading. Experts also say that receiving unusual text messages, an unusually slow or hot phone, or unexpected data charges are all signs of a potential hack.

In the event of a hack, INC.com advises consumers to wipe their phones clean and restore factory settings or visit a professional if possible.

The source code leak is only the latest to reveal potential flaws in Apple’s security. In January, Google researchers discovered a computer bug that could allow hackers to access iPhones and other Apple devices.  Apple confirmed that the bug was real and promised to fix it.

Before this year’s breaches, experts had typically considered iPhones and Apple devices to be less vulnerable to hacking than phones powered by Android software.

Amazon will kick-off its purchase of Whole Foods in grand fashion. The company announced today that it’s rolling out free two-hour delivery on thousands of the grocery store chain’s products through Prime Now starting immediately.

The Whole Foods delivery rolls out in four markets -- Austin, Cincinnati, Dallas, and Virginia Beach -- with plans to expand continuing throughout 2018. This initiative adds greatly to the evolution of Prime Now, which is already available in 32 U.S. metros.

Amazon Prime members can take advantage of this service in two ways: free two-hour delivery or one-hour store-to-door delivery for $7.99 on orders of $35 or more.

“We're happy to bring our customers the convenience of free two-hour delivery through Prime Now and access to thousands of natural and organic groceries and locally sourced favorites,” said John Mackey, Whole Foods Market co-founder and CEO. “Together, we have already lowered prices on many items, and this offering makes Prime customers’ lives even easier.”

Amazon looks to change the grocery game

Online-to-home grocery delivery is nothing new. Peapod launched its online service in 1996 and FreshDirect followed suit in 1999.

Yet, when a company the size of Amazon steps in, everyone takes notice. Grocery giants like Kroger have entered the fray with the help of Uber, and InstaCart helps carry the load for Safeway, Giant, Costco, Harris Teeter, and others in a variety of markets.

In the six short months since its purchase of Whole Foods, Amazon has set out to change how grocers do business.

The company started its reframing by pulling out an old supply chain practice called “order-to-shelf” where stores keep little to nothing on hand and depend on suppliers and distributors to bring in the requested items in small batches.

Amazon’s purchase of Whole Foods has helped the company maintain its big-dog-on-the-porch persona. The online giant’s stock value has grown 48 percent ($952.45 to $1416.78/share) since it bought the grocer and its 473 outlets last Summer.

The company’s territorial fearlessness seems to have no boundary lines. It may have put a chink in Wal-Mart’s armor by offering low-income customers discounted memberships.

With success comes stress

Despite the perceived upsides of the new inventory management model, the grocery giant’s workers say they’re having a difficult time keeping up with the demands of Amazon’s frantic pace.

According to Business Insider, Whole Foods employees are showing signs of wear and tear while trying to wrap their heads around the new inventory management system. Of the 27 current and recently departed Whole Foods workers interviewed, many see the system as punitive and believe that employees are forced to focus on paperwork at the expense of satisfying consumers.

Stress isn’t anything new to Whole Foods. Prior to Amazon buying the chain, the big boys in the game -- Costco, Wal-Mart, and Kroger -- had been luring away customers from the pricey grocer by offering lower cost alternatives. And when the company thought it could breathe a sigh of Amazon relief, it found themselves deflecting ire from the U.S. government and their own employees.

After years of squabbling over spending priorities, Democrats and Republicans in Congress have agreed on a two-year budget that gives both sides more of what they want.

The budget deal gives Democrats a substantial boost in domestic spending and Republicans a sizable increase in military spending, all of which will raise the deficit by approximately $500 billion. The House and Senate are expected to pass the measure within hours.

A two-year budget will remove the need for Congress to pass short-term spending authorizations -- the last one covered just three weeks -- which in the past have turned into showdowns between the two parties, with the threat of a government shutdown hanging in the balance.

While bipartisan agreement is increasingly rare in Washington, the budget proposal coaxed Democrats to the table with massive increases in programs the party has long championed. Programs that fall under education, scientific research, health care, and infrastructure maintenance are getting cash infusions of 21 percent over current budget caps.

Not everyone is happy

Like most compromises, the budget deal isn't making everyone happy. Republican deficit hawks have denounced it for its expansion of red ink. Rep. Mo Brooks (R-Ala.) took to Twitter, calling it irresponsible.

"In light of the danger posed by America’s massive debt & deficits, I won’t support the debt junkie’s spending deal & urge my debt addicted colleagues to reject fiscally irresponsible spending," Brooks wrote in a Tweet.

Across the aisle, Democrats fumed that the measure did not address the legal status of children, many now young adults, brought to the U.S. by their parents who entered the country illegally.

House Minority Leader Nancy Pelosi held the floor of the House for a modern record of eight hours in a speech demanding action. President Trump has expressed support for addressing the issue, and Majority Leader Mitch McConnell (R-Ky.) has promised a vote next week in the Senate.

“This bill is the product of extensive negotiations among Congressional leaders and the White House," McConnell said on the floor of the Senate. "No one would suggest it is perfect. But we worked hard to find common ground and stay focused on serving the American people."

Tax scams are nothing new, but the Internal Revenue Services (IRS) reports a disturbing trend of targeting tax preparers with increasingly sophisticated schemes.

This year's tax filing season has just begun, but already the IRS says it is seeing evidence that cybercriminals have begun filing fraudulent returns with information stolen from tax preparers' computer files.

What makes this scam so dangerous is that it doesn't raise the red flags the IRS has learned to watch for. The fake returns use the real names and Social Security numbers of real taxpayers and deposits the money in their actual bank accounts.

How it works

It works like this: a scammer obtains information about a taxpayer who is due a refund -- information that has been stolen from a tax preparer. He then completes the tax return and files it before the tax preparer gets around to doing it. The refund is then direct deposited into the taxpayer's bank account.

Next, a woman posing as a debt collector calls the taxpayer, tells them a refund was mistakenly deposited into their bank account, and then asks that the money be forwarded to her.

If the taxpayer complies, there is no way to retrieve the money. It was their actual tax refund, legally paid by the IRS, that they turned around and gave to a scammer.

The IRS is urging tax preparers to increase their security because this scam is only possible because someone was able to penetrate a tax professional's computer system, most likely though an email phishing scam.

Targeting tax professionals

As we reported back in October, scammers have breached cloud databases to steal information on financial services clients. Impersonating the tax professional's organization, they then contact the clients asking them to update tax information. As the IRS is now seeing, that information can be used to file a tax return.

"This scheme is likely just the first of many that will be identified this year as the IRS, state tax agencies, and tax industry continue to fight back against tax-related identity thieves," the IRS warned in a statement.

The tax agency says efforts to prevent taxpayer identity theft have been so effective in recent years that scammers have evolved their tactics to focus on tax professionals, where they can steal client data.

For consumers, beware of a "debt collector" calling to say money was deposited by mistake and asking that it be sent to them. If you get such a call, hang up and contact the IRS to let them know, then tell your tax preparer.

It most likely means your tax return has already been filed with the IRS and the refund issued. However, since the scammer filled out the return, it might not have been done correctly.

Rising bond yields, and worries that the Federal Reserve might get more aggressive in raising a key interest rate, have sent Wall Street into turmoil in the last week.

It began with last Friday's jobs report that showed a big jump in wages and a corresponding rise in bond yields, which influence a whole range of interest rates. All of a sudden, it appears the recent era of rock-bottom interest rates is ending.

Consumers can expect to feel some impact from a rising rate environment, though not nearly as much as the stock market. Robert Frick, corporate economist at Navy Federal Credit Union, still believes the Fed will hike interest rates three times in 2018 -- not four as some on Wall Street fear.

No major impact

For consumers, three 0.25 percent hikes in the discount rate will mostly affect those with variable rate loans, such as credit card balances.

"However even a 0.75 percent increase in rates won't have a major impact on those loans," Frick told ConsumerAffairs. "For example, a quarter point hike will only add $40 a year to the interest paid by the people who have average credit card debt of about $16,000."

Car loans are also closely tied to the Fed's discount rate, but here again Frick says consumers probably don't have a lot to worry about. The rate car buyers pay to finance a vehicle will depend largely on their credit rating.

Working to improve your credit score will save a lot more in interest than a rising discount rate will cost.

Slightly higher interest for savers

Rising interest rates might actually help consumers who are saving money. For almost a decade, interest on savings hasn't amounted to much. As bond yields rise, banks will pay a little more on savings.

Frick suggests consumers keeping their money in cash should do research on the certificate of deposit (CD) rates banks are paying and spread money among different maturities. Longer term CDs will pay more in interest.

In the meantime, Frick says consumers can prepare for life in a rising interest rate environment by conducting what he calls a credit audit.

"We've all gotten used to having low rates for so long that we tend to forget about how much we're paying on which loans," he said. "Gather that information and look where you can minimize interest, transfer balances, and even refinance if necessary."

But the good news, he says, is interest rates will rise slowly over the next year and will be less of a concern to Main Street than it is to Wall Street.

Automakers are advertising a near future of extremely sophisticated and safe self-driving cars, powered by computers that are smarter than humans. But when it comes to basic manufacturing practices, the industry appears to be letting consumers down.

An industry marketing firm has painted a disturbing picture of the state of automobiles today. Nearly 20 percent of cars in the United States were recalled in 2016, a figure that a new report describes as both “incredible” and a record-breaker -- and not in a positive way.

Underinvesting in quality

Consumer safety advocates have long criticized individual car companies and the industry as a whole for dragging its feet in addressing various defects and manufacturing problems. But this report, published in January 2018, was not published by a safety group, but rather AlixPartners, a business marketing firm whose clients include companies in the automobile industry.

“The cost of underinvestment in quality is finally becoming apparent to the automotive industry—and its investors,” AlixPartners warns in its report.

While many of the car recalls that the firm studied can be traced back to Takata, the bankrupt airbag corporation responsible for largest automotive industry recall to date due to its potentially explosive airbags, that issue can’t explain the whole story. AlixPartners found a total of 300 other recalls issued in 2016.

Parts suppliers were a major problem in manufacturing. Another common issue compounding the recall problem, the firm says, are defects in the electrical systems that power vehicles.

Electronic or electrical systems  “deliver many of the modern comfort and safety features that today’s consumers demand,” but have also come at a cost. Recalls over defects in such systems have grown 30% in recent years, according to the report. Such recalls can affect an entire line of a given car model because they all rely on the same system.

“These systems-based recalls usually affect 100% of the vehicle models in question, unlike manufacturing defects, which are confined to a single plant or region, and a narrow time window of manufacturing,” the report explains.

Recalls cost companies billions

AlixPartners urges companies to reconsider their manufacturing approach, calculating that recalls have cost the industry an estimated $11.8 billion in claims.

“Despite the mounting expenses and bad press, OEMs [original equipment manufacturers] and their suppliers remain preoccupied with cost reductions and innovations,” the authors write. “Judging by the steady climb in quality issues and customer complaints since 2013, most have continued to underinvest in quality.”

As an example of a quality issue that resulted in “mounting expenses and bad press,” the report cites the General Motors ignition switch scandal, or the recall and criminal investigation over General Motors cars that could suddenly shut off without warning. The defect was blamed for over 120 deaths and dozens of other crashes.

Though knowledge about the problem did not reach the public until 2014, litigation revealed that GM’s engineers knew for at least a decade about the potential of ignition switches to suddenly fail their drivers.

In 2015, after facing lawsuits and recalling 2.6 million Chevy Volts and other small vehicles, GM agreed to pay $900 million to the Department of Justice to settle a criminal investigation into the matter. Between that settlement and civil lawsuits, the scandal cost General Motors over $4 billion, AlixPartners says.

Heavy investments continue in new initiatives

The case presents a stark contrast to claims that automakers have made about the promise and safety of cars of the future. GM, for example, is heavily promoting its autonomous vehicle testing and told ConsumerAffairs last year that it had more self-driving cars in its fleet than any other automaker.  

GM is leading a trend of established car companies trying to take on autonomous start-ups operated by tech powerhouses like Uber, Tesla, and Google. On January 10, Nissan Motor and Mitsubishi Motors announced an alliance in which they plan to invest up to $1 billion “electrification, autonomy, connectivity and artificial intelligence” over the coming years.

And Ford Motor Company last year announced it had invested $1 billion into an artificial intelligence film called Argo AI.

The report by AlixPartners doesn’t specifically call out autonomous vehicle investment as a potential factor in worsening quality in other areas. In fact, the firm on its website describes the “auto of the future” as one that is “connected, autonomous, shared, and electrified.”

Their report does, however, say that automakers have become too preoccupied with profits and innovation, especially after the industry took a hit in 2008.

“In some cases, companies have established metrics and incentives that prioritize sales volume, customer satisfaction, and profit over quality,” the report says.

“In others, companies have failed to perform objective root cause analyses after quality lapses and recall events, or have made only half hearted attempts to address them. More broadly, quality functions have been starved of funding and talent since the financial crisis.”