banking - Is Your Information Protected Online or Are You At Risk?

This question comes up more and more frequently and when the news is about hackers compromising hundreds of thouands of users on a network system it has to be a concern. We are concerned about our privacy but we leave the computers on twenty four hours a day since we are on the fast speed dialups. And, what about having your banking information online and only protected by passwords. I am sure that you have read about the FDIC making new rules for the banks, well hurray for them. Of course, we can not blame the banks or the businesses for lack of knowing what to do, when the technology and the Internet applications change so rapidly. Do you remember a time when we did not even know what www stood for or .com? I am still amazed at how our world has changed with the advent of the information super highway. Technology overload, information overload, and of course bringing along the guys who are always looking for a fast buck without having to work for it. Another question, have you been getting all of those emails that are asking you to be a business partner with them and allow them to put 10 percent of every transaction into your bank account? Well,that is if you have any money after they get your information. Here is something that occurs to me very frequently, so beware if it hasn't to you yet. Paypal.com frequently has people not from their company of course, emailing me regarding my having added an email to my account and please verify my account information. Or better yet,they ask you for your information so that you can add a credit card to your account. Be very careful with any of those emails and do not respond to any of them. I send them to spoof@paypal.com so that theycan investigate the spammers. Now one more question, what about your health information. Are you familiar with the term HIPPA? It is a health care privacy act that is now in effect and all health care providers have to follow the security issues or be faced with stiff penalities and heavy fines. So, not only is the banking industry and the health care industry becoming high risk for doing business online so are the online businesses. Is this all gloom and doom? Absolutely not. It is as with any new change there are related issues that have to be addressed. And, the technology IT programmers and whiz kids are definitely getting on top of the concerns and finding new ways for protection. The Internet has changed our lives just as the telephone and television made an impact on the older generations. Can you imagine what the people in the 1920's have gone thru all of the technology developments? And,it seems that we will be continuing ourselves. It is hard to imagine that there can be anymore types of dramatic technologies to come but I am sure that it is just around the corner. So, let's just keep on moving and improving and protecting our businesses and personal information as best as can until they get it figured out. And, they will and it will change very soon. That is one thing about technology one replaces the other very fast and some become obsolete as well. Just think about the outdated ones that have been replaced or soon will be (vcr tapes, cassettes, fax machines, beepers,etc) and you can remember a whole lot more. About the Author Judy LaMont, R.N. MA. Sec Ed. is an Internet Consultant who shows Entrepreneurs how start their online home-based businesses in very easy simple steps. She resides in Orlando, Fl. and is well known for her Internet knowledge and dedication to helping people. Judy can be reached at support@bizwizzle.com http://www.bizwizzle.com or read her blog at http://sweetspotkey.blogspot.com or call her at 407-832-1996. Article Source:http://EzineArticles.com/?expert=Judy_LaMont banking - A Guide to Offshore Banking Offshore banking has often been associated with the underground economy and organized crime, via tax evasion and money laundering; however, legally, offshore banking does not prevent assets from being subject to personal income tax on interest. Except for certain persons who meet fairly complex requirements , the personal income tax of most countries makes no distinction between interest earned in local banks and those earned abroad. Persons subject to US income tax, for example, are required to declare on penalty of perjury, any offshore bank accounts'which may or may not be numbered bank accounts'they may have. Although offshore banks may decide not to report income to other tax authorities, and have no legal obligation to do so as they are protected by bank secrecy, this does not make the non-declaration of the income by the tax-payer or the evasion of the tax on that income legal. Following September 11, 2001, there have been many calls for more regulation on international finance, in particular concerning offshore banks, tax havens and clearing houses such as Clearstream, based in Luxembourg, being accused of being a crossroads for major illegal money flows. An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax haven) that provides financial and legal advantages. These advantages typically include some or all of: * Strong privacy * Less restrictive legal regulation * Low or no taxation (i.e. tax havens) * Easy access to deposits (at least in terms of regulation) * Protection against local political or financial instability While the term originates from the Channel Islands "offshore" from Britain, and most offshore banks are located in island nations to this day, the term is used figuratively to refer to such banks regardless of location (Switzerland, Luxembourg and Andorra in particular are landlocked). What type of services are available from offshore banks? The same as the services from any high street bank, plus the extremely confidential Swiss style numbered accounts. Many of the offshore banks listed on this site are respected AA credit rated international banks, that everyone has heard of before. They have simply set up an offshore division or branch division within a tax haven to attract a share of the enormous international trade, and offer almost the same services as any domestic bank. Such as the following: * Personal and corporate current/checking account * Personal and corporate savings accounts * Secure internet banking facilities * Anonymous numbered accounts (extremely confidential) * Debit and ATM cards, which are accepted globally * Credit cards * loans * Mortgages Going offshore in simple terms means placing your savings, investments, assets or business concerns outside of your home country, within one of the many tax havens. A tax haven is a country that has very favourable tax advantages, which means that your savings, investments, assets or business profits can grow free of almost any taxation. Although taxation is only one reason why many decide to go offshore. Privacy To protect the free flow of your personal information and dealings. An offshore entity has no obligation to release your personal or business information, affording you with a great deal of privacy & confidentiality. In general terms your personal information will not be divulged to any governing body or tax authority unless suitable evidence can be shown to prove that you have been involved in criminal activities, such as money laundering or drug trafficking. Financial privacy is becoming a thing of the past. Almost every single transaction made at a bank or ATM, by law, must be recorded and filed. Consumer credit agencies maintain databases full of sensitive information that is used and shared by other organizations and agencies. Asset collectors routinely advertise their ability to locate bank accounts, brokerage accounts, and real estate and business holdings. Should asset collectors find substantial wealth, the individual or corporation becomes an easy target for a lawsuit. Unless ethical and legal steps are taken to insure privacy, sensitive and confidential information could easily get into the wrong hands. Placing your assets, investments, savings bank and brokerage accounts offshore will keep them off the asset collector's radar screen. Consumer credit agencies and government departments do not have access to foreign account records or transactions. Domestic property may be held in the name of a foreign corporation (IBC) or trust. This insures that asset collectors and agencies cannot locate it. By taking advantage of these methods an individual or corporation becomes a smaller target and the likelihood of being sued is reduced. Utilizing offshore tools to protect privacy could mean the difference between keeping and losing what is rightfully yours. Tax Efficiency As stated above, your savings, investments, assets or business profits can grow almost free of any form of taxation. This does not mean tax avoidance, it simply means whilst your assets are held offshore they will benefit from very favourable tax advantages. There will for many however, be a potential tax liability when you look to repatriate your assets to your home country. This will depend on your nationality and your country of residence at the time of repatriation. Asset Protection There are many methods in which to protect your assets using an offshore structure, in the form of an investment product, an IBC (International Business Company) or a offshore trust, or even a simple offshore bank account. These will protect your assets from: * Protection from invasive bureaucracy * Protection against lawsuits * Protect your assets from seizure The simplest form of protection offshore is the nature of the offshore privacy rules. What isn't known can't be attacked. The basic form of offshore privacy combined with a IBC or Trust is a very secure method to legally protect your assets from prying eyes. Lawsuits are filed every week. Ex-spouses, ex-business partners, disgruntled employees or predatory lawyers may file a suit if they believe a potential defendant is an attractive target. Losing such a lawsuit could cause a lifetime's worth of savings, investments and real estate holdings to be lost. In light of this, placing assets offshore is a wise and effective means of protection from frivolous lawsuits. Once your assets are held offshore they are unreachable by domestic courts. In the event of a lawsuit, a defendant may be forced to forfeit domestic assets, but offshore assets will remain untouched. Offshore courts do not recognize or carry out domestic judgments. This insures that assets sent offshore will remain confidential, secure, and permanently in the hands of their rightful owners. Moving assets offshore will create peace of mind that what's yours will always be yours. Regulatory Advantages The regulations in force within most high tax countries, are there to protect investors, and rightly so. However, due to the very strict nature of these regulations, fund managers feel as if they are wearing a financial straight Jacket. It is difficult for them to compete with the returns of their offshore-based partners who enjoy less restrictive regulation. Many offshore jurisdictions have very mature regulatory systems in place, often based on those present within the US or the UK, yet they allow fund managers great freedom to add value for their investors. This is why offshore funds nearly always outperform their onshore equivalents. Within the high regulation onshore countries, excessive rules and bureaucracy often plague domestic businesses and operations. Valuable resources are diverted away from the productive process in order to monitor compliance as a result of the restrictions imposed. Curing this problem is as simple as moving to friendlier shores. Offshore jurisdictions are intentionally business-friendly and have regulations that are straightforward, simple to understand and inexpensive to comply with. Moving a business offshore and enjoying a more pleasant business climate may require nothing more than forming an offshore corporation and transferring assets from the domestic corporation to the foreign one. Is all of this legal? Do you trust your current bank or investment provider? Chances are that they too have an offshore operation; most of the world's major banks and investment companies have an offshore present. Do you honestly believe that a triple A credited rated investment company or bank would operate in an illegal activity? Companies such as Merrill Lynch, HSBC, ING Barings, UBS, Barclays, Deustche bank, ABN Amro all have offshore operations. It is not the offshore industry itself that is illegal, it is only the devious activities of certain individuals who may give the offshore industry a poor reputation. It is also true that the due diligence, and money laundering checks performed by offshore companies is increasing, especially after the 911 terrorist attacks. Which will ensure that it becomes difficult for criminals to abuse the offshore industry.