Current Events in May 2020

While many studies have reported on the consistently rising global temperatures, it’s still uncertain how such levels of heat will affect consumers. 

Now, researchers from the Earth Institute at Columbia University found that parts of the world could begin to experience periods of heat and humidity that could make it dangerous for human survival. 

“Previous studies projected that this would happen several decades from now, but this shows it’s happening right now,” said researcher Colin Raymond. “The time these events last will increase, and the areas they affect will grow in direct correlation with global warming.” 

Bracing for the heat

The researchers evaluated weather patterns around the world from 1979 through 2017. They learned that extreme periods of heat and humidity became twice as likely over that time period. The primary concern is that the heat will affect nearly every facet of consumers’ lives, including their physical health and finances. 

While most consumers are used to seeing a heat index to measure the heat and humidity in their area, meteorologists use the “wet bulb” Centigrade scale. A reading of 32 C or higher is considered to be extreme heat, and the researchers explained that this threshold can make it nearly impossible for consumers to be outside. In terms of Fahrenheit, 32 C comes out to 132 degrees, making these temperatures dangerous for humans. 

The researchers noted that the number of readings of at least 32 C have doubled over time, and periods of such intense heat and humidity are only expected to increase. “It’s hard to exaggerate the effects of anything that gets into the 30s,” said Raymond. 

Eliminating jobs

In addition to the risks to consumers’ health, which are amplified in the humidity, the researchers explained that these frequent high temperatures will have an effect on the economy, as many jobs will become impossible. 

While air conditioning can certainly relieve some of the burden, many regions around the world with the highest temperatures aren’t equipped with air conditioning units, and the effects of staying indoors for long periods of time will be felt around the world. 

“These measurements imply that some areas of Earth are much closer than expected to attaining sustained intolerable heat,” said researcher Steven Sherwood. “It was previously believed we had a much larger margin of safety.” 

To combat the growing plague of credit card fraud at the gas pump, Mastercard has launched a program to protect consumers using payment cards at gas pumps that haven’t upgraded to EMV terminals.

At the same time, Mastercard said it is giving gas stations additional time -- until April 16, 2021 -- to make the change to the more secure system before facing liability for fraudulent transactions.

Scammers have replaced old fashioned credit card skimmers that stole customers credit card numbers with new technology that steals the information digitally. Mastercard reports that fraud at gas pumps made up 17 percent of all credit card fraud losses in the fourth quarter of 2019.

Safer system

The company’s new consumer protection program is aimed at providing the merchant and lenders with tools to help them navigate the heightened risk that this particular brand of fraud is presenting.

“Many fuel companies have made the shift to a safer and more secure EMV environment, and we applaud them for doing so,” said Kush Saxena, executive vice president, US Merchants and Acceptance, Mastercard. “However, we also recognize and respect the complexities to upgrade to safer and more secure EMV transactions at fuel dispensers over the next few months.” 

EMV terminals read an embedded chip on the card containing encrypted data. It is now almost universally used for point-of-sale transactions. It has only been in the last few months that this technology has begun to be added to fuel pumps.

The new Mastercard program provides a differentiated layer of protection that the company believes will make the transition from gas pump transactions using the old swipe card readers more effective and safer.

How it works

Mastercard issuing banks will receive enhanced data on high-risk fraud transactions at fuel merchants and will use that information to decide whether to authorize the purchase. In that way, Mastercard says fraud can be stopped before it starts.

The company’s Safety Net and Fraud Rules Manager programs will be upgraded to aid in their decision-making criteria, providing additional protection for their cardholders at fuel pumps.

In late 2019, Visa issued a security alert warning that gas pump thieves were stealing card information without physically altering the gas pump card reader. Instead, they breached the merchant’s payment network and planted malware to collect the data.

To mitigate gas pump credit card fraud, BP recently introduced an app that can be used to pay for gasoline purchases online without physically using a payment card. The app automatically bills the purchase to the card on file.

Mastercard says upgrading all gas pumps in the U.S. to use EMV technology is the best way to stop scammers in their tracks. It says payment card fraud at U.S. gas stations that installed the new technology fell 88 percent between 2015 and 2019.

If you’re a traveler who has flown anywhere in Europe using EasyJet, heads up. Tuesday morning, the low-cost London-based airline disclosed that its customer database had been pillaged by a “highly sophisticated” source. 

The airline told the stock market world that unauthorized access to its systems has been completely sealed off. Still, for the 9 million customers who had their email addresses and travel details compromised and the 2,208 customers who had their credit card details exposed, that’s anything but good. The airline said affected customers will be contacted by the airline no later than May 26. 

EasyJet CEO Johan Lundgren said in a statement that the company takes cybersecurity seriously but that “this is an evolving threat as cyber attackers get ever more sophisticated.”

Cyber attacks more common during pandemic

With the pandemic forcing businesses to work with minimum staff, this digital raid might have been expected. 

“It comes as no surprise that well-known organizations who are very publicly affected by the pandemic -- and are known to have furloughed lots of staff -- would be the targets of sophisticated cyberattacks, with the potential to cause significant reputational damage,” Andrew Tsonchev, director of technology at cybersecurity firm Darktrace told CNBC.

While Tsonchev is only speculating, there might be a stick-up that may yet come out of this. “Globally ... we’ve seen an uptick in highly targeted and sophisticated attacks like these,” he said. 

“Access ‘downstream’ to clients and customer data is often the goal of these attacks, as withholding this data secures not only secures a quick ransom payout at a time when companies are keen to keep cost down, but can also provide vital nuggets of information to launch secondary attacks.”

Think you might be affected?

As is pretty much standard in these situations, Lundgren did his best to give the airline’s customers some solace, suggesting that they be “extra vigilant” if they get an email that purportedly comes from the airline or its travel arm EasyJet Holidays. 

ConsumerAffairs has a couple of other smart moves to suggest: If you’ve done ANY business with EasyJet, be on alert for any unusual activity on your credit cards or bank accounts, change passwords for your EasyJet and any related accounts, and check with HaveIBeenPwned to see if your email address has been compromised in this (or any other) data breach.

We’re still a few days away from the National Association of Realtors’ (NAR) existing-home sales report for April, but RE/MAX, a national brokerage firm, has provided an early glimpse of what the coronavirus (COVID-19) did to the housing market last month.

In its monthly report, RE/MAX found home sales were down an average of 20.2 percent year-over-year in April, the first full month of coronavirus stay-at-home orders. The report covers 53 U.S. markets in which RE/MAX operates.

But while buyers disappeared last month, so did sellers. The report found inventory levels plunged 20 percent as sellers decided to wait before listing their homes for sale. Because of that, home prices didn’t fall -- in fact the median sale price was up nearly 10 percent from April 2019.

‘Better than expected’

The stay-at-home restrictions turned one of the busiest home sale periods of the year into one of the slowest. Four major markets -- New York, Detroit, Miami, and San Francisco -- posted sales declines of more than 40 percent. Only two markets -- Minneapolis and Billings, Mont. -- reported sales increases.

"April results were better than many expected, as consumers continued to buy and sell real estate in one of the most challenging months for housing in memory," said Adam Contos, RE/MAX CEO. "This was a headwind like no other – yet we still saw activity across the country. Even in the markets that dropped 40 percent in sales, people wanted or needed to move, which says something about resiliency and the power of homeownership."

The numbers appear to confirm earlier projections that sales will continue to fall through mid-summer but will snap back in the late summer and early fall due to pent-up demand. Even with the expected rebound, experts believe home sales will be down 15 percent for the year. 

Other expected trends include a migration out of large urban markets and into smaller cities, where density is lower and housing is more affordable.

New listings needed

For the housing market to remain balanced, however, there needs to be an increase in available homes to meet that anticipated demand. Research from NAR suggests that the supply will be there.

In its survey, NAR found about 77 percent of potential sellers plan to put their homes on the market once stay-at-home orders are lifted. Half of this group used the stay-at-home period to perform do-it-yourself projects to make their homes more attractive to buyers.

“After a pause, home sellers are gearing up to list their properties with the reopening of the economy,” said NAR Chief Economist Lawrence Yun. “Plenty of buyers also appear ready to take advantage of record-low mortgage rates and the stability that comes with these locked-in monthly payments into future years.”

Without an increase in inventory, home prices could soar. The RE/MAX report shows April’s median sale price of $276,000 was a record for the month. Should supply and demand get too far out of balance, home prices could go even higher.

A new study conducted by researchers from the University of Wisconsin-Madison found that cats can become infected with COVID-19. 

Their work revealed that these common household pets are capable of both getting the infection and spreading it to other cats, though they aren’t likely to display any symptoms. 

“It’s something for people to keep in mind,” said researcher Peter Halfmann. “If they are quarantined in their house and are worried about passing COVID-19 to children and spouses, they should also worry about giving it to their animals.” 

Infection among animals

The researchers started the study with three cats, injecting the infection from a human sample into all three animals. The next day, the researchers added one healthy cat into each of the infected cats’ cages.

Within three days, all three of the original cats tested positive for the virus. Six days from when the new cats were introduced, all six cats had tested positive. However, none of the cats showed any signs of being sick. 

“That was a major finding for us -- the cats did not have symptoms,” said researcher Yoshihro Kawaoka. Ultimately, all of the cats beat the virus, and they never exhibited any coronavirus-related symptoms through the entire study. 

Lowering risk of infection

For those with pets at home, the researchers recommend keeping cats inside the house. Though humans are most likely to become infected by other humans, and cats are much more likely to get infected from sick humans than vice versa, it’s safest for both consumers and their pets to eliminate any additional risk of infection. 

Moreover, a person who has tested positive for COVID-19 should limit how much time they’re spending with their cats, as doing so can help keep their pet safe and healthy. 

While the researchers explained that more work needs to be done to better understand how cats are affected by the virus, it’s important that pet owners take the necessary precautions to protect themselves and their four-legged companions. 

“As always, animal owners should include pets and other animals in their emergency preparedness planning, including keeping on hand a two-week supply of food and medications,” said researcher Ruthann Chun. “Preparations should also be made for the care of animals should you need to be quarantined or hospitalized due to illness.” 

Coronavirus (COVID-19) tally as compiled by Johns Hopkins University. (Previous numbers in parentheses.)

Total U.S. confirmed cases: 1,491,547 (1,468,577)

Total U.S. deaths: 89,666 (88.811)

Total global cases: 4,748,937 (4,662,534)

Total global deaths: 316,277 (312,274)

Antibodies may be key to treating and preventing COVID-19

Scientists report rapid progress in treating the coronavirus (COVID-19) as well as promising test results of a new vaccine. Developments on both fronts are happening faster than health experts predicted.

Doctors at Houston Methodist Hospital say that when they gave antibodies from recovered patients to 25 critically ill patients, nearly 75 percent quickly improved. It raises hope that a simple blood transfusion could prevent patients from suffering the worst effects of the virus or dying.

In other encouraging news, Moderna reports that preliminary results of its Phase 1 clinical trial of an experimental vaccine showed that it can create antibodies in test subjects. Those antibodies may be effective in preventing the disease.

Why nursing homes have been hard-hit

Employees and residents of nursing homes and long-term care facilities have accounted for about one-third of the COVID-19 deaths in the U.S. University of Michigan researchers say there’s a very good reason why that’s the case.

Sheria Robinson-Lane, a gerontologist and assistant professor at the University of Michigan School of Nursing, says some of our most vulnerable adults live in nursing homes. To be admitted, a patient must require 24-hour nursing care.

More than 90 percent of the older adults in nursing care centers have at least one chronic disease, and more than 70 percent suffer from two chronic conditions. As a result, people in nursing homes generally do not have optimal immune system functioning, so it’s a lot easier for them to get sick.

Gargling may slow the virus, researchers say

Mouthwash may do more than simply fight bad breath. Researchers at the American Physiological Society say many of these products might also be a deterrent against the coronavirus.

In a new review article published in Function, the scientists say readily available dental mouthwashes have the potential to destroy the lipid envelope of coronaviruses, combating virus replication in the mouth and throat. They say there is an urgent need to test the effectiveness of this approach in clinical trials.

“Emerging studies increasingly demonstrate the importance of the throat and salivary glands as sites of virus replication and transmission in early COVID-19 disease,” the researchers wrote. 

They say COVID-19 is an enveloped virus, characterized by an outer lipid membrane derived from the host cell from which it buds. While it is highly sensitive to agents that disrupt lipid bio-membranes, they say there has been no discussion about the potential role of oral rinsing in preventing transmission.

Ford initiating new testing protocol

As Detroit automakers begin to open their vehicle production facilities, Ford has announced that it has contracted with health systems in four metro areas with major company facilities to set up ways to test hourly and salaried employees with suspected symptoms of COVID-19.

The tests will be administered to Ford workers in Southeast Michigan, Louisville, Kansas City, and Chicago. The move is meant to ensure that there are no flare ups of the virus on the assembly line.

“Fast and accurate testing is a key tool in the effort to help stop the spread of COVID-19,” said Dr. Walter Talamonti, Ford’s medical director. “These contracts will allow us to test employees with suspected symptoms and have results back within 24 hours. If they test positive, we can quickly identify close contact employees who may have been exposed and ask them to self-quarantine for 14 days.”

Offices may never be the same

Stores and restaurants have begun to reopen, but offices are still closed in many parts of the country. Companies have discovered over the last six weeks that employees can work efficiently from home and, in a few cases, have increased their productivity.

Offices that reopen may look a lot different in the future. Marc Spector, a fellow of the American Institute of Architects and principal at Spectorgroup, tells CNBC that office spaces will be designed to be “safer,” with more closed-off space for individual workers.

The changes he sees in corporate workspaces include reoriented workstations so people aren’t facing one another, removing tables and seating in conference rooms and other communal areas to create space, and the elimination of personal effects in offices or on desks.

Around the nation

• Missouri: The state saw its smallest weekly increase in coronavirus cases last week since March, the state health department reported. State health officials reported 945 new cases of the virus between May 11 and May 17.  

• Colorado: Colorado has lifted its initial stay-at-home order, but the state isn’t opening quickly enough for some protestors who gathered at the state capital Sunday. Gov. Jared Polis says he’s just following the reopening guidelines specified by the Centers for Disease Control and Prevention (CDC).

• Maine: Restaurants in 12 mostly rural counties are being allowed to reopen their dining rooms, which have been shut down for more than six weeks. The restaurants will be allowed to seat patrons outside with limited indoor seating to maintain social distancing.

Of the many things the U.S. government has stepped in to help consumers with during the COVID-19 pandemic, one significant one -- mortgage relief -- hasn’t gotten much ink. 

That’s all changed now. The Consumer Financial Protection Bureau (CFPB) and the Conference of State Bank Supervisors (CSBS) are stepping up to inform homeowners of their rights to mortgage payment resolution and foreclosure protection under the CARES Act.

Why now? According to John W. Ryan, CSBS President and CEO, the whole who/what/when/where/how has turned into a hot mess. 

“State regulators are hearing from borrowers who are confused about mortgage relief, and, in some cases, getting inconsistent information about forbearance,” Ryan said in a statement.

Consumer options for mortgage relief

Here are the basics for CARES-related mortgage relief:

Eligibility: To be eligible for protections under the CARES Act, a mortgage must be backed by one of these federal agencies and entities listed below.

• Conventional loans purchased or secured by Fannie Mae and Freddie Mac

  • Fannie Mae Loan Lookup

  • Freddie Mac Loan Lookup

• Federal Housing Administration (FHA)

• Home Equity Conversion Mortgage (HECM)

• U.S. Department of Veterans Affairs (VA)

• U.S. Department of Agriculture (USDA), including USDA Direct and USDA Guaranteed

Consumers can also visit this website to determine which relief they qualify for. When dealing directly with a mortgage servicer (the company to which monthly payments are made), they can also tell the consumer if the loan is federally backed. 

Timeframe: Homeowners have the right to obtain a 180-day pause in paying their mortgage. They can also temporarily lower mortgage payments if they are a borrower on a federally backed mortgage loan.

Proof: Homeowners must be able to prove that they are experiencing a financial hardship -- either directly or indirectly -- because of the COVID-19 emergency. 

Consideration: The agencies advise consumers that the decision to ask for relief should be considered carefully. “Forbearance is a temporary reduction or suspension of your monthly payment to help you through a difficult period,” the CFPB notes.

The mortgage still has to be paid: The CFPB also reminds consumers that this is not a “free money” deal -- anyone using this option must repay any missed or reduced payments in the future. Those options will have to be worked out between the consumer and lender at the end of the forbearance period.

Caution: As it goes with things like this, scammers may want to jump in and try and get their hands on some money. It’s crucial for anyone who is considering taking this route that there are NO fees associated with obtaining forbearance. If anyone offers to help out with the process and asks for a fee, the borrower should end any communication with that person or company immediately.

Questions?

The agencies have tried to make this process as simple as possible. Still, they’re ready if a mortgage company asks questions that the borrower may not have, or if a consumer needs clarification on any element.

To start, the agencies suggest the following online resources that consumers can turn to:

• The National Consumer Law Center (NCLC) webpage offers a summary of foreclosure alternatives for borrowers with COVID-19 hardships.

• CFPB COVID-19 Mortgage and Housing Assistance Page

• CSBS COVID-19 Consumer Resources Page

• American Association of Residential Mortgage Regulators (AARMR)

In the race to produce an effective vaccine against the coronavirus (COVID-19) Moderna may have bolted into the lead.

The company has announced “positive interim clinical data” of its vaccine candidate against the virus. The results were produced from the Phase 1 study led by the National Institute of Allergy and Infectious Diseases (NIAID).

Specifically, the test showed that all 45 people who received the experimental vaccine produced antibodies in their blood that are believed to help prevent COVID-19 infection. Scientists say four of the participants produced enough antibodies that could provide immunity, but information is not yet available for the rest. Some participants received a 25 microgram dose twice, 28 days apart.

About two weeks after the second dose, some participants in this group had produced antibodies at a level normally found in patients who have recovered from COVID-19. Dr. Tal Zaks, chief medical officer at Moderna, says it’s encouraging that results can be produced with a small amount of the vaccine.

“When combined with the success in preventing viral replication in the lungs of a pre-clinical challenge model at a dose that elicited similar levels of neutralizing antibodies, these data substantiate our belief that mRNA-1273 has the potential to prevent COVID-19 disease and advance our ability to select a dose for pivotal trials,” Zaks said.

Vaccine ahead of schedule

The development of an effective vaccine appears to be ahead of schedule. Medical experts, citing past disease responses, suggested it might be two years before there was a vaccine to protect people against the coronavirus. 

The first volunteer was inoculated with the experimental vaccine in mid-March, with officials at the time suggesting the process was moving with unusual speed. 

“Finding a safe and effective vaccine to prevent infection with SARS-CoV-2 is an urgent public health priority,” NIAID Director Dr. Anthony S. Fauci said when the trial began. “This Phase 1 study, launched in record speed, is an important first step toward achieving that goal.”

Phase 2 is next

Earlier this month, the Food and Drug Administration (FDA) approved the vaccine for a Phase 2 clinical trial to determine its effectiveness for its intended purpose. 

“The imminent Phase 2 study start is a crucial step forward as we continue to advance the clinical development of mRNA-1273, our vaccine candidate against SARS-CoV-2,” said Stéphane Bancel, Moderna’s CEO.

The company is already looking ahead to a Phase 3 study, which Bancel said could begin as early as this summer. 

States have begun to reopen, but the economic shutdown caused by the coronavirus (COVID-19) has thrown at least 33 million Americans out of work so far. With only unemployment benefits and their savings to sustain them, they are dealing with record debt as they face an uncertain economic future.

A recent report by the Federal Reserve Bank of New York shows household debt increased by 1.1 percent in the first quarter of 2020, rising by $155 billion. It was the kind of debt that normally occurs when times are good. Mortgages were up, and credit card balances were down. Student loan debt increased by $27 billion and car loans increased $15 billion.

The first quarter was actually an extension of a 2019 trend when low unemployment and a strong economy spurred consumers to take on more debt. As we reported at the time, mortgage debt increased the most since just before the 2008 financial crisis.

COVID-19 changed everything

Government policymakers weren’t worried by the increase in debt in 2019 because consumers appeared to be able to handle it. Then in March 2020 -- the last month of the first quarter -- COVID-19 changed everything.

The Fed notes that the credit card balance decline was notably larger than the same period last year, which may reflect the early signs of decreased consumer spending due to COVID-19. 

Data suggests that consumers have curtailed credit card spending while increasing the use of debit cards. A weekly transaction trends report by CUSO PSCU, a payment resource for credit unions, shows credit card spending was down some 20 percent in the first week of May.

At the same time, spending on debit cards was up 6.6 percent, likely due to the fact that people receiving government stimulus payments were spending that money instead of taking on credit card debt.

How will consumers cope?

The concern now is how consumers will cope going forward. Part of the increase in first-quarter mortgage debt came from consumers refinancing mortgages to take out equity. As a result, some are probably facing larger mortgage payments now that their income has fallen. And the Fed report may not tell the whole story.

“It is critical to note that the latest report reflects a time when many of the economic effects of the COVID-19 pandemic were only starting to be felt,” said Andrew Haughwout, senior vice president at the New York Fed. “We will continue to monitor these developments and the broader state of household balance sheets closely as key data are updated and the economic situation evolves.”

Meanwhile, access to new credit appears to be drying up. The Fed report notes that credit standards tightened in the first quarter, with much of the adjustment taking place in March. For mortgages, the median credit score of newly originating borrowers increased to 773, up 14 points from a year ago. 

Auto loans also saw tightening in underwriting standards, with a 3 point increase in the median originating credit score. 

It’s a rather bold statement, but FedEx and Microsoft announced Monday afternoon that the two companies are partnering up to “transform commerce” in a new venture called “FedEx Surround.”

Undoubtedly, the players feel they can take the best of both companies to enable businesses to be more competitive on the digital landscape. 

What changes to expect

The pairing didn’t hold back on unbuttoning and showing off some of what its intent is. Microsoft will be bringing its intelligent cloud service (Azure) and customer relationship management platform (Dynamics 365) to the party. 

For its contribution, FedEx will bring 49-year experience in the logistics world. As a single entity, the pair is hoping to cut out the middlemen and hand-offs sometimes required to satisfy the fulfillment of an order -- like Amazon sometimes has to do with UPS, the Postal Service, or an independent delivery company to complete an order.

“FedEx Surround… will provide near-real-time insights -- down to the granular level of ZIP code, for example -- to shine a digital light on the progress and movement of physical inventory,” the companies said in a statement. That in and of itself could be a giant leap over companies that merely inform customers that a package will be delivered “sometime tomorrow” or “between Noon and 6 pm.”

One of the benefits that those time-centric insights will provide is with time-sensitive deliveries. For example, the companies say their service could be instrumental if a hospital urgently needed a package to help save a life. It could also easily ship a part that may require expedited transportation to a manufacturing facility to avoid an operational shutdown. 

“In each instance, the near-real-time data insights provided by FedEx Surround offer a significant advantage to not only the organizations using the platform but also the people they serve,” the companies said.

The full array of what FedEx Surround will offer will be shared sometime this summer, with customer access rolled out shortly after that.

General Motors, Ford, and Fiat Chrysler have decided to gradually resume operations at their respective U.S. factories, with additional measures to keep workers safe during the COVID-19 pandemic. 

To ensure sufficient social distancing, clear plastic dividers will be set up between seats in dining areas and employee workstations. Employees will be required to stagger their arrival and departure times to reduce contact with others during shift changes and must work at least six feet apart whenever possible. 

Workers will wear face masks and clear plastic face shields or goggles when it’s necessary to work near another person. Ford CEO Jim Hackett said that his company is testing watches that warn the wearer when they are too close to another worker. 

"We work really hard at imagining a world with Covid-19 in an assembly plant," Hackett told CNN. "So they have lots of consideration, of course, for social distancing. We used to have two people, for example, that would be inside the vehicle as it's going down the assembly line. We stopped that."

Frequent cleaning and other precautions

The automakers said they will also be stepping up their cleaning practices. All three companies will thoroughly and frequently clean their facilities and allow extra time between shifts for cleaning.  

Before heading home, employees must fill out a questionnaire that will help the company identify a person who may have symptoms or have been exposed to someone who is or has been ill. Temperature checks will be administered both upon entering and exiting the plants, and workers who have a high temperature or other symptoms of COVID-19 will be sent to local clinics for testing. 

The reopening follows nearly two months of plant closures. With states now beginning to ease stay-at-home restrictions and reopen businesses, executives in the auto industry say restarting auto facilities will help kickstart the economy.

“The auto industry is America’s economic engine,” Ford’s chief operating officer, Jim Farley, said during a recent conference call on the company’s reopening plans. “Restarting the entire auto ecosystem is how we restart the economy.”