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Chrysler Recalls 1.4M Vehicles After Hacking Incident

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Car Checks
In a testing situation, a remote user disabled this vehicle’s brakes sending the car into a ditch.
Imagine yourself traveling down the freeway when a hacker suddenly takes control of your vehicle. It’s a scary thought. And some automotive experts recently proved that is could be done.

First Chrysler Automotive NV issued recalls for some 1.4 million cars and trucks equipped with radios that were shown to be conduits for hacking, based on the results of the experiment. It involved a group of software programmers who proved that a Jeep Cherokee being driven down a Missouri highway could be hacked. Fortunately, there have been no real-world examples of such activities. Fiat Chrysler stressed that the experiment was undertaken out of “an abundance of caution.”

The company acted very quickly to block unauthorized access to some of its vehicles systems by alerting owners through an aired update.

Wired Magazine reported on the simulated hacking in a recent issue. As reported by the employee who was assigned to drive the targeted vehicle, this is how it went:

First of all, the vents in the Cherokee began pouring cold air into the car, although he had not touched the dashboard controls. Then the radio began, on its own, to blast hip-hop music that the driver couldn’t turn off, even by punching the power button. The windshield wipers came on, blurring the glass with wiper fluid, again without the driver’s intervention.

The car’s digital display then coughed up a picture of the two “hackers” in their trademark track suits: a subtle nose-thumbing as they proved they could trump the driver’s control of the vehicle. To simulate a real “highjacking,” they did their work from the driver’s home, 10 miles from where he was tooling down the freeway.

This was all a planned test, so the driver wasn’t flummoxed by the car’s behavior, even though he didn’t know in advance exactly what the “hackers” planned to do. They had only assured him they wouldn’t do anything dangerous. He had come to St. Louis for the express purpose of testing out the car-hacking research the company was conducting. The test proved what they had concluded: that it was possible for a hacker to gain wireless control over the vehicle. Steering, brakes and transmission all were vulnerable, as well as the onboard entertainment system. In theory, a hacker with a laptop far removed from the vehicle could take over control of its functions.

The thought of losing control of your vehicle while in motion is not a happy one. Drivers may have cause to be grateful to manufacturers such as Fiat Chrysler Automobiles NV that are anticipating incipient problems and nipping them in the bud.

Included in the list of vehicles being recalled for preventative updates are the 2015 versions of Ram pickups, Jeep Cherokee and Grand Cherokee SUVs, Dodge Challenger sports coupes and Viper supercars.

Millennials Confident For Future

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millenial-generationThat group of Americans who became young adults just as the new century arrived – collectively known as Millennials in the current vernacular – are probably more job-savvy than their older peers and more optimistic about their role in the nation’s economy.

By 2025, they’ll make up 75 percent of the nation’s workforce. They see the future through rose-colored glasses and have confidence in their ability to find the job they want. They put a high premium on rapid advancement in their chosen field and they want to be well-paid for what they do. The necessity to repay student loans is impetus for some of their expectations.

Looking at their high degree of confidence, some of the economic experts are scratching their heads. The millennials came of working age right at the peak of the worse economic downturn in the country since the Great Depression. Perhaps, they reason, this generation came to the job market with more expectations that things could only get better after several years of recession.

The current job market seems to bear out their optimism. The recovery has been slow and spotty, but nationally, applications for jobless aid have fallen to a 15-year low, one of a number of indicators that suggest the United States is back on track.

The number of new jobs being offered is another sign that the Millennials will be able to keep themselves busy over the predictable future. In May, some 280,000 new job opportunities were posted by American employers.

The more robust economy has sent more shoppers into the stores. Spending for the month of May was up, an indication that workers are not so leery of what will happen next. Cheaper gas prices also added momentum to spending on other things.

Current trends seem to support the Millennial view that life will be good for those who will be the employment majority for the foreseeable future.

Fraud And Liability Charges For Merchants

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EMV credit cards are being accepted at over 78,000 merchants.
EMV credit cards are being accepted at over 78,000 merchants.
More and more credit and debit cards containing fraud-busting chips are showing up at the point of purchase. Creditcard.com reports 78,800 merchants have installed EMV technology. That’s good news for most individuals, but have become a source of concern for small businesses that can ill afford the equipment needed to handle the new cards.

Banks and credit card companies hail the advanced technology as a way to sharply reduce fraud opportunities. They are distributing the cards and phasing out magnetic strip cards that are easier targets for thieves. But the cost of refitting to accommodate the new chip cards is hurting small businesses. The cost can range from the low hundreds to tens of thousands of dollars, depending on the required equipment. Merchants who don’t have the EMV processing equipment and then have a fraud issue could face a charge-back so big, it could put them out of business.

The retailers are under notice that they must make the transition by Oct. 1, 2015 when the magnetic strip cards will be phased out. If they don’t comply, the credit card giants, such as MasterCard, Visa and American Express will make them liable for transactions made with phony chip cards.

The small companies have a double whammy. They don’t have the volume of business to underwrite the costs of new equipment and they don’t qualify for the discounts that those who sell the equipment offer to larger businesses.

A consumer sees only a small part of the payment processing system. Software in the merchant’s computer only receives the transaction information. It then goes to a processor, which posts a charge or debit to the cardholder’s account and a credit to the merchant’s account.

Even the simplest card readers used in stores and other small businesses cost at least $100. At the outset, the readers also will be able to read magnetic strips and/or handle so-called contactless payments made with services such as Apple Pay or Google Wallet and other electronic wallet applications. More complex reading systems will run into the thousands. They manage inventory and customer/vendor information. Restaurants and businesses with multiple locations are likely to have the most complex systems and so the highest expenses.

Besides the costs of reading equipment, many small businesses will have to hire the expertise needed to accommodate the upgraded technology. Such experts charge $100 an hour or more to install systems and ensure that they work.

But with the growing concerns for the amount of fraud that has beleaguered retailers and their customers, the handwriting is on the wall. The expectation that the chip-embedded cards will make inroads into the problem will likely trump any other concerns. Small businesses will have to make the leap, regardless of the cost.

When To Close A Credit Card

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Keep the number of credit cards you have to a minimum.
Keep the number of credit cards you have to a minimum.
If you are like most Americans, you are besieged with offers to try a new credit card, often offering a lower interest rate or more rewards than the one you are currently using. How to decide, short of accumulating a fistful?

Closing out one of your current cards to accommodate another may make good economic sense, but it also can have a downside. Closing out a card you have had for a long time may cause a temporary dip in your credit rating. Some card holders opt to hold onto their old, established cards rather than swap for a lower-interest option because of that reason.

However, experts at Experian, one of the three big credit bureaus, say that excessive concern about the effect on your credit rating should not be the exclusive reason for not changing cards. It is one of the factors you should consider, but there are others.

Credit bureaus look at a range of factors when they create a score for you, said Experian’s Rod Griffin.

Credit utilization is one of the factors. That means how much of your available credit you are actually using. If you have four cards, each with a limit of $5,000, you have total credit available of $20,000. But if you have two cards that are about maxed out and no balances on two of the cards, you are only utilizing about 50 percent of your capacity. That’s what the credit bureau looks at. Cancelling one of the cards would have a small impact on your overall score. And if you continue a long-running record of timely payments, it is likely to recoup quickly.

Even so, if you are planning to apply for a home or auto loan or any other in which your credit score will be relevant, wait until that transaction is complete before dropping a card, Griffin advises. In general, it takes three to six months for your rating to be affected by the cancellation of a card.

If you are concerned that cancelling a card will immediately eliminate its credit history, don’t be, he says. The credit bureau will include that card’s history in its considerations of your rating for at least 10 years if there is no negative background.

Your next credit report will note that a card was closed at your request, which is not likely to be a red flag for a potential lender.

If you want to evaluate your credit cards and determine if they are all necessary, the questions you should ask include whether or not a particular card is financially beneficial to you. Consider the interest rate, fees, incentives and rewards and make comparisons to determine if you want to eliminate one or more of the cards. Ideally, you will retain only cards that you use on a monthly basis, paying them off in a timely manner.

Occasional pruning is a good idea, particularly if you are carrying a lot of cards that have low limits and relatively high interest. For instance, that card you signed up for in college for the sake of the free T-shirt. As your credit history matures, you have more leeway for low-interest cards that offer more incentives.

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    Digital Wallets Replacing The Pocket Bulge

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    Smartphones are the new digital wallets.
    Smartphones are the new digital wallets.
    What has happened to the traditional wallets that were a pain in the hip pocket or another item to lose in your purse? As predicted by tech gurus for years, they are being displaced by smartphones which can be digital wallets.

    Even those who still rely on cash or plastic when they shop may soon succumb to the newer, more efficient digital wallets that are being offered by the tech companies.

    Store-issued credit cards and store rewards programs are coming via Apple Pay and it really gets into the mobile payment services it began last fall. Google is standing by with a similar service that will enhance its smartphone options to run on its Android software. Samsung has in store for its newest Galaxy smartphones a service that it says will be accepted in more stores than either the Apple Pay or Android Pay.

    The goal, according to company spokespersons, is to replace the standard wallet.

    The improvements are almost ahead of the demand. Last year, some 16 million Americans used smartphones to pay for about $3.5 billion in store purchases, says eMarketer, a shopping research firm. The total includes Apple Pay purchases, PayPal and merchant-sponsored options from Starbucks, Dunkin’ Donuts and others.

    Sounds big, but it’s just a small part of the $4.3 trillion Americans spent in stores last year. The researcher group expects that the digital wallet component will grow to $27.5 billion in 2016 as the option catches on with more shoppers.

    The move to digital pay has been slowed by failure among the major tech providers to agree on technical standards, security measures and financial terms. And some large merchants have balked, saying they would prefer to develop their own systems.

    Despite the roadblocks, Apple Pay made inroads when it was endorsed by major banks and retail firms. The system only works on the latest models of iPhones and Apple Watch. Users create a link to their iPhone with a credit card or bank account. When that has been accomplished, the user just has to hold the phone next to a device on the store counter to make a transaction. The phone and the counter device communicate wirelessly, with the purchaser authorizing payment by pressing the phone’s fingerprint sensor. No card to swipe. The user’s financial information is protected by encrypted codes.

    Apple’s next update will facilitate credit purchases and allow purchasers to tap into loyalty points at major stores where they routinely shop. Agreements between the phone providers and popular shopping spots such as Walgreens will add options. Walgreens expects that in the near future, more customers will pay with smartphones or watches to tap into the stores’ Balance Rewards program. They will be able to use their loyalty points with Apple Pay. J.C. Penney stores also are banking on many iPhone shoppers opting into their store-label credit cards. The in-store credit card already is snagging more transactions than any other payment card. Customers earn points with each transaction.

    Google, which has struggled to compete in the digital wallet arena, believes it will gain ground with the introduction of Android Pay, due to be released this year. Google will add store rewards, but does not plan to work with store credit cards, at least initially.

    Not to be left behind in the race to digital wallet pay, Samsung Pay will also be released this fall. Its technology will work with traditional store credit card readers. Stores initiating the services from other tech companies have to invest in equipment to receive data.

    The move obviously is on and pay-by-phone is here to stay.

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