Money Management

Scammers are using technology to steal money from more people. Find out how you may be targeted with a phone call that seems legit but is actually a scam. 

There has been a lot of talk about AI lately. While this technology can offer benefits, people can use it to do harm and steal from others. Unfortunately, scammers are using AI to impersonate others to steal money. You may fall for a financial scam if you’re not careful.

AI is being used to clone voices to make scam calls

In recent years, it’s been common for scammers to hack online messaging apps and pose as family members or friends to ask for financial help. Often, these text messages have grammatical and spelling errors or include wording that the person messaging wouldn’t use, making it easier to detect that it’s not someone you know asking for money.

But scams are evolving, and thieves are utilizing technology to improve their craft. Fraudsters are using AI to mimic the voices of others and are calling people pretending to be family members or friends in need of financial assistance. They may say they need bail money or are in another urgent situation that requires money.

Since many of us post videos and share voice clips online regularly, it’s easy for thieves to access voices and then clone them. All a scammer needs is a short audio clip of someone’s voice to clone it, and they can then create fake messages that sound very believable.

Be wary of phone calls from loved ones in need of cash

When you get an unexpected phone call from a loved one in distress, you should be aware that it’s possible that the voice on the other line is not who you think it is and is potentially a scammer. The voice may sound convincing, so it’s easy to fall victim to this scheme.

According to the Federal Trade Commission (FTC), imposter scams like this are becoming more popular. In fact, 2.4 million fraud reports were made in 2022, and consumers reported losing nearly $8.8 billion. The type of fraud most commonly reported last year was imposter scams.

What can you do to protect yourself? Act with extra caution. The FTC suggests that consumers not continue interacting with the person on the other line if they receive a call like this. Instead, they should hang up and call the person directly to verify the story.

Other ways to protect your money from scammers

With the increase in financial scams like imposter phone calls, take extra steps to protect the funds in your checking account. Here are a few tips to stay safe:

Verify the source of the call. If you get a phone call from someone and you’re told you need to send money, be wary. Hang up and call the person or company directly to make sure you’re not being taken advantage of by a scammer. Never share personal information with others. If someone contacts you by email, text message, or phone and asks you to provide personal information like financial account details, passwords, or PINs, they’re likely trying to scam you. Never give away these private details to others. Avoid clicking links. Many scammers include phishing links in their messages. The link may appear legit, but it could be a phishing link used to steal your information. Avoid clicking on links sent to you by people you don’t know well. Create strong passwords. When creating new passwords, make sure they’re unique. If you choose a simple or easy-to-guess password, it’ll be easier for you to get hacked. It’s also a good idea to update your passwords every so often.

Scammers will continue to seek new ways to trick unsuspecting people into parting ways with their money. But you can keep your money safe by being alert and taking extra precautions. For additional money management tips, check out our personal finance resources.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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Several auto insurers in California have recently hiked rates. Here’s what drivers need to know about how to keep their premiums down. 

Despite being one of the most expensive states to live in, California auto insurance rates are actually pretty affordable. Right now, drivers pay a few hundred dollars less than the national average, but that could be changing soon.

California Insurance Commissioner Ricardo Lara has approved auto insurance rate hikes for the top six carriers in the state over the last few months. This is expected to cost drivers billions of dollars. Here’s what Californians need to know, along with some tips for keeping their rates low.

These six California auto insurers are raising rates

The following six auto insurers have gotten approval from the State of California to raise policyholders’ premiums in 2023, according to Consumer Watchdog:

State Farm ($71 average increase per policyholder)Auto Club of Southern California ($140 average increase per policyholder)Mercury Insurance ($80 average increase per vehicle)Farmers ($98 average increase per policyholder)GEICO ($125 average increase per policyholder)Allstate ($167 average increase per policyholder)

Most of these rate hikes have already gone into effect, with the exception of the first two. The Auto Club increase is slated to take effect on April 15, 2023 while the State Farm rate hike goes into effect a month later on May 15, 2023.

Many, including Consumer Watchdog, feel the rate hikes are unjustified. But unfortunately, there isn’t a lot that the average driver can do to change the insurance commissioner’s mind. Instead, it’s best to focus on the factors a policyholder can control.

Three tips for keeping California car insurance rates down

Here are a few things California drivers can try to lower their auto insurance premiums or at least keep them close to the same as what they’re used to.

1. Shop around

Each insurer weighs an applicant’s risk a little differently, which is why companies give different rates to the same driver. Unfortunately, these risk algorithms are proprietary, so the only way to know which one is most favorable to a specific driver is to get quotes and compare them.

It’s best to get rates from a handful of car insurance companies before choosing one. Drivers shouldn’t rule out the companies on the list above just because they’ve raised rates recently. They may still offer affordable policies, especially to those who qualify for some of their discounts. But it doesn’t hurt to explore some insurers who aren’t on that list as well.

2. Claim all possible discounts

Most of the time, insurers apply car insurance discounts to a qualifying driver’s premiums automatically. But there are a few discounts drivers need to opt into. This is usually the case for driver monitoring programs that track behavior behind the wheel.

Not everyone is comfortable enrolling in one of these programs. But those who are could shave quite a bit off their premiums by doing so. Most insurers give an upfront discount just for enrolling with the possibility of additional discounts based on driving behavior.

3. Choose a higher deductible

Raising a car insurance deductible typically reduces premiums. The downside to this is that it leads to higher out-of-pocket costs in the event of an accident. But this may not be an issue for drivers who save up for their deductible in an emergency fund.

Insurers usually give drivers some advanced warning of what their next policy premium will be, so you should have some time to take the above steps if you’re not happy with your current provider without worrying about a lapse in coverage. Finding a new insurer can be a pain, but it’s worth it if it saves you tens or even hundreds of dollars annually.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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An annual Prime membership costs $139 a year. Read on to see if that number is likely to climb this year. 

In February of 2022, Amazon announced that it would be raising the cost of a Prime membership from $119 a year to $139. Not surprisingly, some consumers were less than thrilled with that news. After all, that $20 increase was not insignificant, especially at a time when many people were still trying to recover from the financial blow of the pandemic.

At this point, that $139 a year price point has been in place for more than a year. And if you’re a Prime member, you may be wondering if the cost of your membership is about to increase again.

The good news is that while the cost of Amazon Prime might go up eventually, it’s unlikely to increase in 2023. That doesn’t mean you shouldn’t consider canceling your Amazon Prime membership, though.

Is Amazon Prime worth it to you?

Prior to 2022, the last time Amazon raised the cost of a Prime membership was back in 2018. If the company follows a similar pattern in the coming years, we should expect to be able to get through 2023 without another price hike.

Also, back-to-back price increases from one year to the next won’t look good for Amazon as a business. So for that reason alone, Prime members are pretty likely to avoid a price hike this year.

But while the cost of Amazon Prime may not increase anytime soon, it may still be time to reconsider your membership. Amazon Prime offers a lot of value for members who use it regularly. It’s when you don’t use your membership very often that the question of whether it’s worth it arises.

The main benefit of Amazon Prime is getting to snag free two-day shipping on orders of any amount. Meanwhile, many consumers started shopping more online at the start of the pandemic, when it seemed safer than shopping in person. If you’re no longer of that mindset, though, and you’ve taken to shopping in person multiple times a week, then it may be harder to justify the cost of Amazon Prime. After all, what’s the point of paying for free two-day shipping when you’re only ordering one item a month?

Also, one huge side benefit of Amazon Prime is the access you get to free streaming content. But if you’re already paying for a bunch of other streaming services, then this may be a benefit you’re not really utilizing.

Should you cancel Amazon Prime?

We probably won’t see the cost of a Prime membership rise anytime soon. But that doesn’t mean you should be throwing $139 a year away. That’s money that could serve a lot of important purposes, like boosting your savings account balance. And if you have an outstanding credit card balance, canceling Prime could free up some cash to chip away at it.

Therefore, think about whether you’re getting good use out of your Prime membership, and if not, pull the plug. You may be okay with the current $139 price point. But if it’s not delivering value to you personally, then it’s still a waste of your hard-earned money.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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The process of buying a home can be lengthy. Read on to see how low inventory might extend it even more so today. 

Buying a home isn’t something that happens overnight. Rather, there are different steps you’ll need to tackle to become a homeowner.

First, you’ll need to search your local market and find a place that meets your needs. Then, you’ll need to negotiate with the seller in the hopes of getting your offer accepted. Once that happens, you’ll need to shop around for a mortgage. And once you put one in place, it can easily take 30 to 60 days to finalize that loan and close on your home.

All told, financial guru Dave Ramsey says buyers should expect the home-buying process to take four to five months. He breaks that down as two to three months to find the right home and another one to two months to go from contract to closing.

But of course, that’s just a rough average, says Ramsey. There are different factors that might cause the process of buying a home to take longer. And these days, a lack of housing inventory might leave you in a position where it takes much longer to go from wanting to buy a home to actually moving into a property that’s yours.

Low inventory is slowing things down

As of February, there were 980,000 available homes on the U.S. real estate market, according to the National Association of Realtors. That represents a 2.6-month supply. For context, it usually takes at least a four-month supply of homes to balance the housing market. And often, a six-month supply is needed to fully meet buyer demand.

Clearly, we’re nowhere close today. Not only does that give sellers an advantage in today’s market, but it also means that it might take you a lot longer than usual to find a suitable home to buy.

It’s one thing to have 15 properties to choose from within your target neighborhood. But these days, if you’re only looking at four or five properties, your chances of finding a home that meets your needs are lower.

And even if you do manage to find a home you can see yourself living in, remember that you’re probably not the only person looking to buy in your neighborhood. You might find a great home that three other buyers are willing to pay a premium for, too.

That’s why buying a home today might require a whole lot of patience on your part. And you should definitely gear up for the process to take longer than it normally would.

When will housing inventory pick up?

It’s really hard to say. These days, mortgage rates are higher than they’ve been in years. Meanwhile, many existing homeowners are sitting on lower mortgage rates they locked in during the pandemic. A lot of those people are going to be hesitant to sell their homes in an environment like this.

As such, today’s low real estate inventory levels might be with us for quite some time. So anyone looking to buy a home should prepare to spend more time from start to finish.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has positions in Target. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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Credit may be getting harder to attain, but there are steps you can take to increase your chances of being able to borrow. Read on to learn more. 

Many consumers rely on credit, whether in the form of personal loans or actual credit cards, to cover their expenses and pay for costs that arise unexpectedly, like home or car repairs. But these days, you might struggle to get approved for a loan or credit card more so than you might have in the past.

U.S. consumers report that it’s harder to access credit now than it was a year ago, according to recent data from the Federal Reserve Bank of New York. Not only that, but many households expect that it will get harder to obtain credit a year from now.

If you’ve been denied credit in the past or are worried about your prospects of getting approved for a credit card or loan, then boosting your credit score could be the answer. Here’s how to make that happen.

1. Pay all of your bills on time

Your payment history carries more weight than any other factor when calculating your credit score. So if you make a point to pay every bill of yours on time, that aspect of your credit score is apt to improve. To pull this off, though, you’ll need more than just calendar reminders. You might need to add some money to your savings account so you have cash reserves to pay your bills.

2. Pay down some credit card debt

If you make the minimum payment due on your credit cards every month, you’ll be considered timely with your debt. But carrying large credit card balances could hurt your credit score even if you’re on time with your payments. That’s because another big factor that goes into calculating your credit score is utilization, or the amount of available credit you’re using at once. Paying off some of your credit card debt could shrink your utilization ratio, thereby helping your score improve.

3. Check your credit report for errors

Your credit report is a snapshot of your borrowing history. It shows which loans or lines of credit you have outstanding, what your balances look like, and how timely you are with payments. It’s possible, though, for your credit report to contain a mistake that works against you. For example, yours might list a debt as delinquent when it was actually settled or paid off. So if you see an error on your credit report, reach out to the bureau that provided it and attempt to get the issue resolved. Doing so could lead to a quick increase in your credit score.

It may be getting harder to borrow money these days, but that doesn’t mean you’re doomed to be denied credit when you need it. If you go in with a solid credit score, there’s a good chance you will get to borrow money. You just might face a higher interest rate than you’d like because borrowing costs are up right now on a whole. And if you make an effort to improve your credit score, you might find that your next loan or credit card application is met with a welcoming “yes.”

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More