A guide to accounts payable fraud

This article is provided courtesy of Nacha (National Automated Clearing House Association).

Accounts payable (AP) fraud is a common type of fraud that targets a company’s accounts payable department, which is responsible for paying suppliers and other vendors. It can be committed internally by employees, externally by vendors, the two parties working together, or, increasingly, by an outside fraudster looking to gain access to the company’s accounts payable systems. AP fraud is a silent threat faced by many companies.

Accounts payable fraud impacts thousands of businesses both large and small every year. This is due to several factors, including how easy fraud is under traditional AP processes and increased sophistication on the part of fraudsters. In many cases, AP fraud is perpetrated right under the noses of businesses and, in many cases, with their unknowing cooperation.

What types of accounts payable fraud should your business be on the lookout for?

Check fraud

Check fraud occurs when a criminal manipulates a physical check to redirect payments to unauthorized accounts. Check fraud might include adjusting the amount a check is made out for, changing the payee, or writing checks for personal expenses from a business account.

ACH fraud

ACH fraud is the process of electronically transferring funds from your company’s bank account to an unauthorized account through the ACH network. This can be done through phishing, business email compromise, data breaches, or installing malicious software.

Internal fraud

Internal AP fraud is when the business is defrauded by an internal employee at the company. Internal fraud can be committed through submitting false expense reports, altering invoices, setting up fake vendors, and using business funds for personal gain.

10 tips for AP fraud prevention and detection

Identifying and preventing cases of AP fraud should be a top priority for businesses across all industries. Here are ten tips for fraud prevention and detection:

  1. Be proactive. Conduct regular audits, monitor key performance indicators (KPIs) closely, watch for red flags, and always check bank statements.
  2. Set up a tip line and other ways for employees to report fraud. Establish a set of guidelines for protecting them once they do.
  3. Conduct background checks on all employees and verify their references.
  4. Implement a written code of ethics. This code should be easily digestible and resonate with the industry and business culture. It should include policies outlining conflicts of interest.
  5. Implement clear policies for expense reimbursement. Enforce them at the highest levels of the organization.
  6. Segregate duties and define roles. At the basic level, divide bookkeeping and check signing authority. Don’t have the same person cut the checks, sign the checks, and reconcile the bank accounts.
  7. Educate employees on threats posed by phishing attempts and how to identify them.
  8. Implement policies for providing appropriate verification of any changes to existing invoices, bank deposit information, and contact information.
  9. Check and update the vendor files regularly to keep all vendor information current.
  10. Automate the AP process to ensure security and segregation of duties.

While preventing fraud is an ongoing process for many businesses, being aware of the red flags and implementing the right internal controls can help businesses detect and prevent fraud in the future.

10 ways to protect yourself against deepfakes

You’ve probably heard about generative AI (artificial intelligence), but you might not be aware that these technologies have brought with them new concerns about privacy, identity theft, and misinformation. One damaging AI scam is called “deepfake” technology.

Deepfakes are AI-generated videos or audio clips that make it appear as though someone is saying or doing something they never did. Just by this definition, the possibilities for identity theft and misinformation might become obvious to you. Deepfakes can be used to defame individuals and commit fraud. For example, if your vocal identity and sensitive information got into the wrong hands, a cybercriminal could use deepfaked audio to contact your bank or a loved one.

You might think that because you don’t use any AI product you could never be a victim. The truth is that these technologies can scrub data (such as video, photographs, and voice recordings) of millions of people from websites, like social media platforms.

You can take some steps to reduce the chances that a criminal creates a deepfake of you. Mostly, you should think about what you share publicly. Here are 10 strategies to protect yourself and some tips about what to do if you suspect you’re the victim of a deepfake.

1. Share with care

The first step in avoiding deepfakes is to be extremely cautious about what personal information you share online. Limit the amount of data available about yourself, especially high-quality photos and videos, that could be used to create a deepfake. You can adjust the settings of social media platforms so that only trusted people can see what you share. Of course, you should also make sure that you trust anyone who requests to follow or friend you.

2. Enable strong privacy settings

Take full advantage of websites’ privacy settings to control who can access your personal information and content. Restrict who can see your photos, videos, and other sensitive data. This includes websites where you store photos. When you reduce the amount of publicly available material, you minimize the resources potential deepfake creators have.

3. Watermark photos

When sharing images or videos online, consider using a digital watermark on them. This can discourage deepfake creators from using your content since it makes their efforts more traceable. Canva allows you to create and add a custom watermark for free. If you have Photoshop, you can do that there, too.

4. Learn about deepfakes and AI

The realm of AI is changing rapidly. Staying informed of the latest developments can help you be vigilant. You don’t need to become an expert, but following the news about these technologies is important for everybody. This knowledge can help you recognize potential red flags when encountering suspicious content. MIT Technology Review is a great resource that shares up-to-date information about the latest AI news and trends.

5. Use multi-factor authentication

Double your security by adding multi-factor authentication for all of your accounts. This is when you need an extra step to log into an account, such as a facial scan, entering a code texted to your phone, or using a standalone app on your device. This extra security layer helps prevent unauthorized access to your accounts, reducing the chances of someone obtaining your personal data.

6. Use long, strong, and unique passwords

Every password should be at least 16 characters long, unique to the account, and contain a random mix of uppercase letters, lowercase letters, numbers, and special characters. The best way to remember all these unique passwords is by storing them in a password manager with MFA turned on.

7. Keep your software up to date

Keep your devices and software up to date with the latest security patches and updates. Outdated software can have vulnerabilities that hackers may exploit to access your data. We recommend turning on automatic updates so you don’t have to constantly check for new updates.

8. Don’t take the phishing bait

Be cautious when receiving emails, direct messages, texts, phone calls, or other digital communications if the source is unknown. This is especially true if the message is demanding that you act fast, such as claiming your computer has been hacked or that you won a prize. Deepfake creators attempt to manipulate your emotions so you download malware or share personal information. Verify the identity of the sender and avoid clicking on suspicious links. We always say: think before you click.

9. Report deepfake content

If you come across deepfake content that involves you or someone you know, report it to the platform hosting the content. There’s usually a “report” button for individual posts on social media platforms. This can help in having it removed or investigated, limiting its potential reach. Be sure to provide as much details as possible. You should also report it to federal law enforcement.

10. Consult legal advice

If you’re the victim of a deepfake that has damaged your reputation, consult with cybersecurity and data privacy legal experts. Laws are quickly evolving to address the issue of deepfakes, but with technology changing so fast, the legal system takes time to catch up. You can act—contact your elected representatives and tell them you want to see more action around preventing deepfakes.

While deepfakes provide a new terrain in the battle against misinformation and defamation, you can take proactive measures to protect your digital identity. In fact, this advice is good for protecting yourself from other common cyber threats. Stay informed, adopt these cybersecurity habits, and think hard about what you post online, as well as who has access to it.

What you need to know about home appraisals & your home loan

After months of searching, you’ve finally found the perfect home and are already picturing your family relaxing in the den. The last thing you want is a problem during the loan process that derails your dream. Understanding the home-buying process is critical to making things go smoothly. One item you need to know is the home appraisal process, which is conducted by a licensed appraiser. What is a home appraisal, and how can it affect your home loan? Let’s dive in.

What is an appraisal?

When purchasing a home and applying for a mortgage, one of the first steps the lender will do is order an appraisal. The house will need to be evaluated by an independent, unbiased professional appraiser to estimate the home’s fair market value. A home appraisal is an expert’s opinion of the value of a given property. This is different from an inspection, which evaluates the condition of the property and looks for things like structural problems, fire and safety hazards, roof conditions, mold, and other issues.

How is an appraisal based?

The fair market value of a home is based on its general condition, age, location, size and current market trends. The number of bedrooms and bathrooms, plus any structural improvements, like remodeled rooms or additions, are critical factors.

Amenities are another consideration—is there a swimming pool on the property or a boat dock? Features such as hardwood floors or majestic views also influence value.
The purchase price of comparable sales within a given radius is a crucial component. These prices demonstrate what the market is willing to pay for a home similar to the one being appraised and help ensure an accurate appraisal.

What happens during an appraisal?

Because the home will be used as collateral for the mortgage loan, the lender needs to be assured that the money loaned doesn’t exceed the home’s value should the buyer default. Unfortunately, you don’t get to choose your home appraiser. The lender orders the appraisal, and the appraisal cost is paid by the buyer (generally between $300-$400). This is usually how the home appraisal process works:

  • Step 1: The appraiser will conduct an in-person inspection of the home and visually inspect the interior and exterior.
  • Step 2: The appraiser will then take measurements and note any conditions that might positively or negatively affect the property value before compiling the home appraisal report.
  • Step 3: The appraiser will research recent home sales in the areas and deliver a final appraisal report that includes an estimated value.

What if the appraisal is lower than the sale price?

If the appraisal value is lower than the sale price, you’ve reached a fork in the road. The mortgage lender won’t approve a loan for more money than the home’s worth. But don’t worry—these things happen, and you have a few options if you encounter a low appraisal.

Negotiate the home price

You can use a low appraisal as a negotiating tool to encourage the seller to lower the home’s price. You can ask the seller to match the appraised value or meet in the middle. Your realtor can help you determine the terms. Some concessions might include a rent-back agreement, covering any home improvements yourself, or even taking large furniture (e.g., a pool table) so the seller doesn’t have to worry about moving those items.

Make a larger down payment

If you have enough savings, you can choose to make a larger down payment. When you make a larger down payment, it helps mitigate the low appraisal by reducing the loan amount needed—which means the lender is taking on less risk. This can also help you negotiate the home’s price and potentially reduce your closing costs.

Challenge the appraisal

If you think the appraiser understated the value, you have the option to challenge the estimation or get a second appraisal. You can submit a letter to your lender and ask for a reconsideration of value (ROV). Be sure to include evidence of errors or comparable home sales, as well as updated comparable sales if needed.

Sometimes home values lower due to foreclosures or short sales in the area. You may convince your appraiser that this was the case with some of the comparable properties while at the same time, proving that your home is in significantly better condition than those that were sold at a discount. Upgrades or renovations that were made without a permit can’t be considered in the appraisal.

Walk away from the sale

When you buy a home, you realtor will likely include an appraisal contingency in your contract. This protects you (the buyer) if you receive a low appraisal. If you and the seller can’t come to an agreement, the appraisal contingency allows you to back out of the contract without losing your earnest money deposit.

How can sellers prepare for an appraisal?

As the seller, there are a few easy steps you can take to ensure the appraisal process goes smoothly—and increase the value of your home.

  • Review previous appraisals: Look at previous appraisals and see what factors lowered your home’s value. See what factors may have lowered your home’s value in the past.
  • Gather important documents: You’ll want a list of any upgrades, evidence of your home’s last sale price, and (if applicable) a land survey that details your property size.
  • Spruce up your curb appeal: Do some landscaping, trim the hedges, or clean the gutters to make your home more pleasing.
  • Make minor repairs: You don’t need to go all out—this could be as simple as fixing chipped paint or replacing door knobs.
  • Know the comps: Check out the comparable sales in your neighborhood so you can gauge what similar homes are selling for.
  • Prepare for the visit: Tidy up and crate or contain pets to make the appraiser’s job easier.

What if the appraisal is higher than the sale price?

If the appraisal value is higher than the sale price, this transaction can keep moving along as planned. The expert opinion of the appraiser is that the value of your soon-to-be new home is higher than what you’ve agreed to pay. Congratulations—you already have equity in your new home!

If you’re refinancing, this means you have enough equity in your home to borrow against. Don’t worry though—this won’t increase your property taxes. Your property taxes are based on the assessed value, which is determined by your local tax assessor.

Pros & Cons of a High Appraisal
Pros Cons
You can borrow the money needed to buy the home at the agreed sale price. The seller could try to renegotiate the price.
If you’re refinancing, this can increase your equity or remove private mortgage insurance (PMI). You run the risk of borrowing more than you can afford if you’re getting a home equity loan or line of credit.
If home prices fall in the area, you could owe more on your house than it’s worth (in the case of refinancing).

Pros & Cons of a Low Appraisal
Pros Cons
The seller could lower the asking price to match the appraisal. Your lender might not loan you the funds to buy your new home.
You have the option to back out of the sale and get your earnest money back. You might need to offer more money for a down payment.
If you’re refinancing, you don’t have enough equity to borrow against.

The value of an appraisal

The appraisal process isn’t meant to put a roadblock between you and your dream home—it’s there to protect you and the lender. You don’t want to unknowingly overpay for a home, especially if you need to sell it in the short term. It could be worth less than you owe, and that’s an unfortunate situation for everyone. From the lender’s perspective, they don’t want to own a house they can’t sell to cover the outstanding loan balance in case of a loan default.

In the home-buying process—or for refinancing homeowners—the appraisal is just one of many things that need to occur to get to the closing table. Regardless of whether your appraisal comes in high or low, understanding the process is your best defense to managing the hurdles until you get to your home sweet home.

Have questions about buying a home? We’re here to help!

5 ways to avoid voting scams

Elections are a cornerstone of our society. However, some cybercriminals don’t respect the sanctity of our voting process. In this digital age, election time and voting scams have presented new challenges for the security of our democratic institutions. Here are five ways you can stay safe online as you head to the polls, whether you’re voting early or hitting the voting booth on election day.

1. Look out for a rise in phishing attempts

Traditionally, phishing attempts increase when big events, like elections, are on the horizon. Cybercriminals engaged in phishing often impersonate legitimate entities, like campaigns, to acquire sensitive information. Scammers will send emails, text messages, or social media messages masquerading as official election authorities, political campaigns, or candidates. These messages may contain false information, request personal details, or provide links to malicious websites. To avoid falling victim, always be skeptical of unsolicited messages, verify the sender’s legitimacy, and never click on suspicious links. Look to your federal, state, or city governments for official election information.

2. Be aware of fake election websites

Malicious actors create fake election websites that mimic legitimate platforms to deceive voters. These sites can be used to defraud people by asking for phony donations. They’re also created to spread misinformation, collect data, or distribute malware. Access election-related information through official government websites with secure connections (https://) and be extremely cautious about clicking links shared through social media or emails.

3. Watch for voter suppression tactics

Election scammers have exploited voter suppression tactics to impact how people participate in the democratic process. This includes spreading misinformation about polling locations, voting dates, or eligibility requirements. Always use official government sources when it comes to looking up voting information. Report any suspicious activities to election authorities.

4. Check for fake voter registration drives

Scammers have used social media to fool potential voters into thinking they can vote through a website, text message, or phone. Not only is this voter suppression, but cybercriminals might use these tactics to steal your personal data. Scammers may pose online as volunteers or political party representatives, manipulating individuals into providing sensitive details. Use federal government resources to register to vote or check your voter information. No states allow registering to vote over the phone.

5. Be on alert for robocall and phone scams

During election seasons, robocalls and scammers can spread misinformation, intimidate voters, or provide false instructions. They might even ask for money and lead you to believe you’re donating to a campaign. Hackers can “spoof” phone numbers and impersonate official organizations. Always be vigilant, and you can opt to donate through verified websites. Be suspicious about unsolicited calls, and never share personal information with someone who calls you. Report suspicious calls to relevant authorities, and consider using call-blocking systems to filter out potential scams.

Help protect yourself and our democracy

Democracy is precious, and protecting our electoral process in our connected age should be important to everyone. You can help play a part by learning to avoid election scams, reporting any suspicious election-related activity you come across, and teaching others about scams and voter suppression. As responsible citizens, let’s embrace our role in ensuring a secure and transparent democratic process for generations to come.

How to celebrate Halloween on a budget

Spooky season is upon us, which means scary movies, haunted houses, and lots of treats. While Halloween can be a blast as a kid, as an adult, the scariest thing is often how much it costs to celebrate. In fact, Americans are expected to spend $11.6 billion total on Halloween, with an average of over $100 planned spending per person according to the National Retail Federation. If those numbers send shivers down your wallet, don’t panic. Keep reading to see how you can save money this Halloween.

Take inventory and plan

It’s easy to see the Halloween decorations in stores and be tempted to go all out. Before you do that, take stock of what you already have. If you love Halloween, this probably isn’t the first time you’re decorating, so pull out the boxes from the attic, basement, or storage closets and get to work. List the things you already have, including décor or props you may think belongs solely to another holiday. Once you’ve done that, you can decide how you want to decorate and what supplies you’ll need—you might discover you’re only missing a few items from your wish list. From there, you can prioritize what you really want or decide they aren’t necessary. If you decide to go shopping, list the items you want and decide on a budget.

Pro tip: When packing up your decorations later, write down what’s inside and leave it at the top of the box. When you open it next year, you won’t have to dig confusedly through boxes to find the things you need.

Halloween swap

Now that you’ve taken inventory, you may have also found some old decorations you don’t love anymore or costumes that don’t fit. Before you hit the store, consider doing a Halloween swap with your neighbors or friends. Grab your crew and bring all your extras—any Halloween decorations, old costumes, or extra candy buckets. Not only will you walk away with some new things, but you’ve saved some cash and cleaned out space!

Do-it-yourself

Another benefit of taking inventory is that you may find pieces you already have that can be repurposed into new costumes or decorations. You may also grab pieces at your Halloween swap that can be adjusted to fit your needs. You can even upcycle things you already have to get in the spooky spirit. Turn empty soda bottles into a jetpack or turn your trash bags into spiderwebs. Ready for Christmas? Put your tree up, cover it with a sheet, add some eyes, and you’ve got a spooky ghost haunting your halls (plus, you’re three steps ahead of the next season)! And don’t forget, anything can be made more Halloween-y with a little fake blood.

Buy secondhand

If you decide to buy some new things for Halloween, you don’t have to spend a fortune. Whether you’re looking for costumes or decorations, another great way to save money is buying secondhand. Check out sites like Facebook Marketplace and Nextdoor to find items in your area for sale. Don’t forget to check the thrift stores and secondhand shops, either—these can be great places to find items that match a specific theme of décor or to find pieces for a costume. (I recently picked up the cutest pumpkin bowl that, while missing its lid, works great as a centerpiece with flowers!) If you’re crafty, some secondhand stores sell fabric, or you can repurpose readily available items like sweatshirts. Around this time of the year, many thrift stores even have a section of old costumes.

Other things to keep in mind

Two of the biggest things to keep in mind as you start to collect new Halloween treats is how easily you can store new things and if they can be used for other holidays or events. That 12-foot skeleton looks awesome, but if you’re only using it once a year and it fills your entire attic, is it really worth it?

Halloween can also be a good time to talk to your kids about money. While candy and costumes are a lot of fun, they can also help you introduce concepts like budgeting, which can make the conversation less intimidating for them—and you!

Key takeaways:

  • Take stock of your supplies before you go shopping.
  • Buy secondhand from places like Facebook Marketplace or thrift stores.

Whether you prefer the tricks or treats, Halloween can be a ton of fun—and a ton of money. We hope these ideas help you save some money this year so you can make the most of the holiday while spending the least.

5 fall break destinations on a budget

School is in session and (fake) fall is in the air—which means fall break! While this is a shorter break than summer or spring, that doesn’t mean you can’t still plan a vacation. According to a survey from YouGov, 11% of Americans say they’ve never left the state they live in, and fewer than 2% have visited all 50 states. Whether you’re a history buff, a foodie, or more outdoorsy, there’s a destination for you. Worried you can’t afford it? We’re here to help you stress less—here are five affordable fall break vacation destinations.

1. Grand Canyon National Park

There’s a reason this destination is a classic vacation spot! One of the seven natural wonders of the world, the Grand Canyon spans over 1,900 square miles with rock walls descending more than a mile down to the bottom of the canyon. While the area is typically full of people, fall in the Grand Canyon means milder weather and minimal crowds, making it the perfect time to explore popular trails like Bright Angel and the Rim Trail. Fall is also a great time to raft the Colorado River—no need to worry about heavy rainfall.

Visit the Yavapai Museum of Geology  to learn about the geologic history recorded in the rocks and the names of the different rock layers (admission is free). From there, take on the Trail of Time. This nearly three-mile paved walk displays a visceral representation of geologic time, with bronze markers tracking your location in time. Fall is a favorite time for animals, too! Many animals become more active this time of year, and lucky listeners can hear the bugle mating call of elks or even catch of glimpse of them fighting, literally, for a female’s attention.

Those coming by car can score an entry pass that covers the entire vehicle and is valid for seven consecutive days, so be sure to bring the whole crew for an adventure of a lifetime. The park also offers a few options to save money—if you’re the parent of a fourth grader, check out Every Kid Outdoors for a voucher that admits the student, plus accompanying passengers, in a non-commercial vehicle. Or, if you’re planning to visit at least two additional national parks within the next 12 months, then you’ll want to look into an America the Beautiful pass. If you’re more interested in a day trip to the canyon, consider a tour that also covers nearby cities like Flagstaff, and take advantage of the free shuttle bus service.

2. Hocking Hills State Park

Another great state park to check out this fall break is Hocking Hills State Park. Located just about 50 miles southeast of Columbus, Ohio, this park is known for its fantastic displays of fall foliage. Plus, mild temperatures make hiking trails like Conkles Hollow Rim and Cedar Falls a tremendous option for leaf-peeping. Get up close with nature on a ziplining tour with Hocking Hills Canopy Tours, and road trippers will love the Hocking Hills road tour, which provides stunning views as the road twists and turns through the forest.

Other options at the park include mountain biking, horseback riding, boating, and more. If you’re interested in astronomy, visit the John Glenn Astronomy Park (JGAP). Open both day and night for views of the sky, they also host guided stargazing events on clear Friday and Saturday nights, where they “tour” the constellations and other features of the sky. Admission to JGAP is free, as is parking, though you’ll need to register for a free parking pass on event days. Get more in the fall spirit at Walker Farm, where you can check out the corn maze for $6 per guest over the age of five, or $10 if you also want to go through the sunflower field.

Entrance to the park is free and also features a campground with electric and non-electric sites depending on your preference. If that’s not your style, the area is also home to cabins, glamping sites, and luxurious lodges.

3. Gulf Shores

Looking for a different kind of view this fall? Forget the foliage and visit Gulf Shores for beautiful beaches and delicious seafood. Gulf Shores is extremely popular during spring and summer, so an autumnal escape means fewer people all while taking advantage of some nearly-perfect weather. Gulf Shores in the fall is known for their gorgeous sunrises and sunsets, so pack a sweater when planning to enjoy the views.

There’s also a ton of activities for the whole family besides the beach. History buffs will enjoy Fort Morgan, exploring the fort’s storehouse, barracks, and more while learning about its role during the Civil War. Adult tickets are $8, while student tickets cost $6, and kids under 6 years old are free—you can also purchase a family of four pack for $20, which covers two adults and two kids.

Nature lovers will delight in the annual Alabama Coastal BirdFest, which highlights the fall migration of more than 300 species of birds along the Alabama Gulf Coast. Registration for the nature expo is free, with additional options like pontoon tours available for purchase. Or, check out the Alabama Gulf Coast Zoo to visit more than 100 species of animals, including 22 critically endangered species like the red ruffed lemur.

And of course, you can’t go wrong with a weekend at the 51st annual Shrimp Festival. As the saying goes, you can barbecue it, boil it, broil it, bake it, sauté it, or get your shrimp and seafood any other way you like from one of 50 local and regional vendors. Plus enjoy live music, art booths, children’s activities, and so much more.

4. New Orleans

Is spooky season your favorite? Then you may want to check out New Orleans this fall break. Known for its haunted history, New Orleans is the perfect place to get ready for Halloween. Check out any of the plethora of ghost tours to hear scary stories of sightings in hotels, restaurants, and homes, or visit the New Orleans Pharmacy Museum, a historic apothecary located in the French Quarter, which details the history of some creepy procedures of the past.

October is also a great time to visit since the weather has started to change. And since most people prefer to travel in the spring or summer, you’ll avoid the huge crowds and sweltering heat while strolling through the French Quarter or the Garden District. There are tons of free festivals, including the Crescent City Blues & BBQ Festival, Gentilly Fest, and Art for Art’s Sake. Since the city is so walkable, you can skip the Ubers for some extra savings. Not up for walking? The street cars are a unique—and cheap—way to get around the city.

A visit to New Orleans wouldn’t be complete without some delicious food, and options abound. Coop’s Place is an affordable favorite, serving up rabbit and sausage jambalaya and seafood gumbo, or visit Deja Vu Restaurant and Bar for classic Cajun dishes and comfort foods.

5. Gatlinburg

Four hours north of Atlanta, the gateway to the Smoky Mountains is another great—and affordable—option for a fall break vacation. Full of family-friendly activities, like Ripley’s Aquarium of the Smokies and Gatlin’s Fun Center, this small town is perfect for kids and kids-at-heart. Gatlinburg has become so popular that in 2021, they had more visitors at Smoky Mountain National Park than Yellowstone, Yosemite, and Grand Canyon national parks combined!

Whether you prefer to stroll through town or explore the park, options abound in Gatlinburg. Entrance to the national park is free, though you’ll need to purchase a parking permit. With the foliage hitting its peak in October, the hiking trails are even prettier or consider taking a scenic drive if you’re a little less outdoorsy. Fan of local art? Visit the galleries in the Great Smoky Arts & Crafts Community, and enjoy watching the artisans at work.

You may also want to check out the Salt and Pepper Shaker Museum. At only $3 to get in, the price of your ticket also goes towards a purchase in the gift shop. More of a movie lover? Then you’ll want to visit the Hollywood Star Cars Museum. Home to a plethora of famous cars from TV and movies, you’ll be able to check out classic cars like the Jeep from Jurassic Park, the Munster’s car, and even a Batmobile.

Don’t forget to budget

Now’s a great time to look into redeeming those credit card reward points, too! With Georgia’s Own Flex Rewards1, you can earn points for your purchases and redeem them for discounts at the pump, unique events, or even flights and hotels, helping you save money on your vacation. Plus, our Visa Signature®, Visa® Platinum, and Student Visa cards offer travel and emergency assistance and trip cancellation/interruption reimbursement2 when you book travel with those cards. This can be important as you’ll also want to keep the weather in mind—fall is hurricane season in the Gulf, and winter can come early in places like the Grand Canyon or Gatlinburg, so be sure to research.

Lastly, make sure you know what your priorities are for travel before you hit the road, especially if you’re planning to travel with a group.

Key takeaways:

  • State and national parks like Hocking Hills and Grand Canyon are great options for outdoorsy fall break vacations.
  • Check out destinations on the Gulf Coast like New Orleans and Gulf Shores for fun fall festivals and delicious food.
  • Closest to Atlanta, head north to Gatlinburg for fun for the whole family.

As you can see, there are plenty of options for affordable fall-break vacations, and even more reasons to explore the States! We hope this list helps you find your perfect vacation destination. Have a favorite fall destination? Share it in the comments below!

10 ways to stay safe online

With a little knowledge, effort, and a few minutes of your time, you can keep your sensitive data and computer systems locked down tight. Cybersecurity doesn’t have to be intimidating, and it doesn’t require a large investment of time or money. You can secure your digital life with trusted free tools. Plus, many cybersecurity best practices can now be automated.

Just minutes of preparation can keep you safe. The benefits of a little research, education, and action far outweigh the potential costs of losing your unprotected data in a breach or having your identity stolen. Even if some of your data is compromised, you can ensure that the damage will be minimal if you follow some simple guidelines.

Here are our 10 top tips to stay safe online:

1. Keep your software updated

Keep all software on internet-connected devices—including personal computers, smartphones, and tablets—current to reduce the risk of infection from ransomware and malware. If you want to “set it and forget it,” configure your devices to update automatically or to notify you when an update is available.

Outdated software is vulnerable to hackers looking to steal personal information, like usernames and passwords, bank account numbers, or even your Social Security number. Configure your devices to update automatically or to notify you when an update is available. If you don’t enable automatic updates, it’s recommended to install software updates as soon as they roll out or check monthly.

2. Use long, unique passwords

Length trumps complexity. Strong passwords are at least 12 characters long and include letters, numbers, and symbols. Ideally, your password isn’t recognizable as a word or phrase. And, yes, you should have a unique password for each online account.

Sounds hard to remember? Using a password manager has never been easier—many smartphones and browsers include password managers and even suggest strong passwords. Otherwise, we recommend creating a “passphrase,” a sentence at least 12 characters long. Focus on positive sentences or phrases that are easy to remember, such as ILov3StayingSafeOnl1ne! (but don’t use that one).

3. Use a password manager

It’s time to ditch the notebook if that’s where you keep your passwords—ditto for that Notes app or doc. Instead, the simplest, most secure way to manage unique passwords is through a password manager application. A password manager is software created to manage all your online credentials like usernames and passwords. Many are free, and browsers and device operating systems often include password management programs.

Password managers store your passwords in an encrypted database (think of it as your data vault). These programs also generate new passwords when you need them. It’s never been easier to generate, store, and access your passwords safely.

Bitwarden offers a free personal plan that allows you to store unlimited passwords, use the app on unlimited devices, free sharing for two users, and more. They also offer a family plan for $40 per year that allows up to six users, encrypted file sharing, and emergency contacts who can access your vault in case of an emergency.

4. Enable multi-factor authentication

Multi-factor authentication (MFA), sometimes called two-factor authentication, adds another level of security to your key accounts. MFA includes biometrics (face ID scans or fingerprint access), security keys, or apps that send you unique, one-time codes when you want to log onto a sensitive account. We recommend you use MFA whenever offered.

MFA varies across platforms, but the overall process is generally the same. For example, you log into your bank account with your username and password. If entered correctly, the server will send an authentication code to a secondary device, typically via text or email. Then, you’ll enter the unique code to confirm your identity and gain access. If someone attempts to access your account, they can’t unless they have the authentication code.

5. Think before you click

What’s the most common way for cybercriminals to get your sensitive information? It’s when you click on something you shouldn’t have. Malicious links in emails, tweets, texts, posts, social media messages, and malicious online advertising (known as malvertising) are a direct way for hackers to get your sensitive information. Be wary of clicking on links or downloading anything sent by a stranger or that you weren’t expecting. Whenever you get an email or message, count to five—usually that’s all the time you need to determine if the communication seems authentic or not.

If you accidentally click an unknown link, disconnect your device from the internet and ensure your files are backed up. Next, scan your device for malware, then change your usernames and passwords. Lastly, set up a free fraud alert on your credit report with one of the three major bureaus: Experian, Equifax, or TransUnion.

6. Report phishing

One of the best ways to take down cybercriminals is by reporting phishing attempts, and nowadays it’s easier than ever. If the email came to your work email address, report it to your IT manager or security team as quickly as possible.

If you’re at home and the email was sent to your personal email address, don’t click on any links (even the unsubscribe link) or reply to the email. Most email programs and social media platforms allow you to report phishing attempts. But don’t keep that phishing message around—delete it ASAP. You can further protect yourself by blocking the sender from your email program, social media platform, or phone.

7. Use secure WiFi

Public wireless networks and hotspots are unsecured, which means that anyone could potentially see what you’re doing on your laptop or smartphone while you are connected to them. Limit what you do on public WiFi. Especially avoid logging into key accounts like email and financial services. Consider using a virtual private network (VPN) or a personal/mobile hotspot if you need a more secure connection.

VPNs encrypt your online traffic and anonymize your location, allowing you to browse safely and securely. Even if your traffic is intercepted, hackers can’t view your activity. VPNs are becoming increasingly popular due to the ability to unblock geo-blocked content on streaming platforms, and they’re also user-friendly.

8. Back it up

The best way to protect your valuable work, music, photos, data, and other digital information is to make copies and store them safely. If you have a copy of your data and your device falls victim to ransomware or other cyber threats, you can restore the data from a backup. If you break your computer or it crashes, you won’t lose the data along with the device. Use the 3-2-1 rule as a guide to backing up your data. The rule is: to have at least three (3) copies of your data and store two (2) backup copies on different storage media, with one (1) of them located offsite. One of these storage possibilities can be backing up to the cloud, which are secure computer servers you can access through an account.

9. Check your settings

When you sign up for a new account, download a new app, or get a new device, immediately configure the privacy and security settings to your comfort level for information sharing. Regularly check these settings to ensure they’re still configured to your comfort. Audit your apps, platforms, and games every few months and delete the ones you no longer use.

10. Share with care

Think before posting about yourself and others online. Consider what a post reveals, who might see it, and how it might affect you or others. One popular trend on social media consists of answering a list of personal questions, such as the name of your first pet or the street you grew up on. Many of those are common security questions, and you’re unknowingly distributing those answers for hackers to view—and potentially gain access to your financial information.

Key takeaways:

  • Stay updated: Keep your software and devices up to date to protect against vulnerabilities.
  • Strong passwords: Use long, unique passwords and consider a password manager for easy management.
  • Multi-factor authentication: Enable MFA for added security on key accounts.

Following the above tips will help ensure your data stays protected so you can enjoy our digital world. By sharing this with your friends, family members, and even coworkers, we can work together to make the online landscape a safer place.

Guide to financial independence part 4: retirement planning

Welcome to part four of our guide to financial freedom, where we take you through the needed steps to achieve financial independence. In our previous posts, we’ve covered some of the most common financial terms, how to deal with debt, and the different types of savings accounts. While we briefly touched on retirement savings in the last part, it’s time to dig deeper. Read on to learn about the different retirement accounts available and how they work to help you save for the future.

Why you need a retirement savings plan

According to a recent study from AARP, only a third of adults expect to be financially secure in retirement. Even more startling, results showed that this impacted Gen X most significantly and that most don’t have a plan for managing their money in retirement. But, just because you have a plan doesn’t guarantee you understand it, either—another study from AARP showed that less than half of adults 50-plus completely understand the notices they receive from their plans.

These concerns highlight the importance of having a retirement plan and understanding how your plan works to save money for your future. So, what makes a good retirement plan? In addition to building savings while you have income, your plan needs to address long-term sustainability:  how to spend money in retirement in a way that allows it to last. But what type of retirement account do you need? When talking about retirement planning, there’s a lot of letters and numbers being thrown around—you’ve likely heard the terms “401(k)” or “IRA.” Both are broad terms to describe types of retirement accounts, but there are a few differences between them and even more accounts to choose from.

What is a 401(k)?

A 401(k) is a retirement savings plan offered by your employer, where you consistently set aside a percentage of your salary to the account. One benefit is that your employer may match contributions up to a specific limit, allowing you to essentially double your contributions. 401(k)s work by investing that money, typically in mutual funds selected by the employer that are designed with a retirement year in mind. Per the IRS, the total amount contributed—from both you and your employer—in a tax year may not exceed $69,000, or $76,500 for investors 50 or older, and the total contribution cannot exceed 100% of the participant’s compensation.

There are two main types of 401(k)s—traditional and Roth. Contributions to a traditional 401(k) are made pre-tax, meaning they reduce your taxable income for that year by the contribution amount. However, this ultimately means that income tax will be paid on withdrawals. With a Roth 401(k), you contribute after-tax money. While you won’t get the upfront tax break, you do get tax- and penalty-free withdrawals in retirement, as long as you’re at least 59 ½ years old and have had the account for at least five years. There’s no penalty for withdrawals from traditional 401(k)s either, as long as the distributions are made at age 59 ½ or older.

However, if you find yourself in need, you may be able to make an early withdrawal from your 401(k). Some common examples of hardship withdrawals include tuition and related educational expenses, medical bills, and primary home purchase expenses. It’s important to note that hardship distributions may be subject to income tax and an early withdrawal penalty of 10%.

Overall, 401(k) plans can be a great option for retirement savings, especially if your employer offers a contribution match, as you can easily contribute from your paychecks. However, you may not have an employer-sponsored plan or find you want more flexibility in retirement savings. That’s where an IRA comes in.

What is an IRA?

IRA stands for an individual retirement account, a retirement savings account held by a credit union or bank, an investment company, or a brokerage firm. Primarily designed for people without access to a 401(k), anyone with earned income can open an IRA, so some people open one to have an additional source of retirement income.

Like 401(k)s, you may have a traditional or Roth IRA. With a traditional IRA, you make contributions pre-tax, allowing you to reduce your taxable income for the year. The money set aside grows tax-deferred, and you can withdraw from the account without penalty once you reach 59 ½, though you’ll have to pay taxes on it. For 2024, the maximum annual individual contribution is $7,000, and those age 50 or older can make catch-up contributions up to an additional $1,000 ($8,000 total).

If you don’t have an employer-sponsored retirement plan, your traditional IRA contributions are fully deductible. But if you—or your spouse—have a retirement plan at work, like a 401(k), your modified adjusted gross income (MAGI) determines if and how much of your contributions can be deducted. Again, like a Roth 401(k), contributions to your Roth IRA are made after tax, so you won’t pay taxes later, even on your investment gains. Contribution limits are currently the same as traditional IRAs. However, there are income limitations on contributions to a Roth IRA. For the 2024 tax year, single filers are limited to $146,000 to $161,000, while married couples filing joint returns are limited to $230,000 to $240,000.

Another difference between Roth and traditional accounts is that Roth IRAs don’t have required minimum distributions (RMDs). RMDs are a set amount of money that must be withdrawn annually from certain retirement plans like traditional 401(k)s and IRAs, and they have to be taken by April 1st after you turn 73 years old, or you risk a penalty. With a Roth IRA, you don’t have to make a withdrawal if you don’t need it, allowing your money to continue growing tax-free. Additionally, you can keep making Roth IRA contributions regardless of age as long as you have eligible earned income. As of 2024, Roth 401(k)s from 2024 or later are also now exempt from RMDs.

One of the biggest benefits of an IRA compared to a 401(k) is that you have the ability to invest your money across multiple options, like stocks, bonds, and mutual funds, as opposed to a singular investment option with your 401(k). However, contribution limits are much lower, and you won’t get matching contributions from your employer.

Other retirement accounts

There are many types of retirement accounts, but there are a few other common ones. If you’re a small business owner or self-employed, you may also have the option to set up a Simplified Employee Pension (SEP) IRA—where contributions are made directly from the employer into an account set up for each employee—or a Savings Incentive Match Plan for Employees (SIMPLE) IRA, which allows both employers and employees to contribute to a traditional IRA. If you’ve left a previous employer, you may also have a rollover IRA, which is funded by money “rolled over” from an employer-sponsored plan. Which, aside from a 401(k), could be a 403(b). A 403(b) plan is essentially the same as a 401(k), but offered by tax-exempt organizations like hospitals, schools, and nonprofit organizations.

Key takeaways:

  • Start saving for retirement as soon as possible.
  • IRAs are individual retirement accounts, while 401(k)s are offered by employers.
  • Traditional 401(k) and IRA contributions are made before tax, and grow tax-deferred. Roth 401(k) and IRA contributions are made after tax and grow tax-free.
  • IRA contribution limits for 2024 are $7,000, and those age 50 or older can make catch-up contributions up to an additional $1,000 ($8,000 total).

Planning for retirement can be overwhelming, especially with all of the options available and the different rules for each kind. We hope this helps you understand the different types of accounts and why saving for retirement now is a critical step for financial freedom later.

Still feeling stressed? Our team of financial professionals is available to help you determine your best steps for success!

Guide to financial independence part 3: savings 101

Welcome back to our guide to financial freedom, where we take you through the needed steps to achieve financial independence. So far, we’ve covered some of the most common financial terms, as well as how to deal with debt. Now that you’ve conquered your debt, it’s time to start saving. But what’s the best option for you? Below, we’ll dig into the most common types of savings accounts and their benefits.

Savings account

When you think about saving money, a savings account is probably what first comes to mind—an  account that allows you to safely deposit and store money while earning a small amount of interest. Federally insured by the National Credit Union Administration (NCUA) at credit unions or the Federal Deposit Insurance Company (FDIC) at banks, savings accounts offer a secure place to store your money as you work towards short- or long-term financial goals. Money can be added to savings accounts easily and through various methods, including direct deposit and mobile apps. You can also easily access your money in case of emergency. Be aware, you may be limited to six “convenient” withdrawals or transfers per month from the account free of charge. Another downside is that the interest rate is lower than other accounts, like a money market or CD, and some accounts require a minimum balance.

High-yield savings account

Savings accounts are great, but one of the biggest drawbacks is the lower interest rate. If you’re looking for all the benefits of a savings account, plus a better rate, then a high-yield savings account may be the right choice for you—the interest rate on a high-yield account can be 10 to 20 times higher than a traditional savings account. As such, high-yield savings accounts are a great place for short-term financial goals, like saving for vacation or a down payment, or for your emergency fund.

Similarly to traditional savings accounts, high-yield savings accounts may come with a monthly withdrawal limit, and you may incur a fee if you exceed this limit. Additionally, you may have fewer options of withdrawal methods than traditional savings accounts, which can make accessing your funds a little more challenging.

Money market account

Another great option for saving money is a money market account (MMA). Money market accounts give you the benefit of a better interest rate along with check-writing and debit card privileges. This is particularly helpful in an emergency, as you can access funds more easily than with traditional savings accounts. However, a minimum initial deposit is required to open an MMA and balances must be maintained over a certain threshold while they’re active.

And again, you’re limited to six withdrawals from this account in a month. Like high-yield savings account, MMAs are best for people who are looking to earn more interest than they would with a traditional savings account, particularly with short-term savings goals in mind.

Certificates of deposit

The next option you might consider to save money is a certificate of deposit (CD). Issued by a credit union or bank, CDs allow you to set money aside for a specific time frame at a fixed interest rate, giving up access to funds until the account reaches maturity. Like the other accounts, CDs are backed by the NCUA or the FDIC depending on the issuing institution, which means your money is protected up to $250,000. CDs can be great for certain situations. If you have a stockpile of cash that you don’t need now but want in the future—maybe for a house or a car—a short-term investment like a CD is helpful. You don’t run the risk of losing money if you were to invest in something like the stock market. They can also keep your money safe from yourself if you have trouble with impulse purchases.

Remember, you won’t be able to easily access this money in an emergency and will likely pay a penalty for withdrawing those funds. The biggest risk with CDs is interest rate—as the financial markets fluctuate in response to economic and political factors, you want your CD’s rate of return to remain competitive. If rates rise, your current investments could be locked into a lower rate for an extended period. While you don’t risk losing your investment and earned interest, you could miss the opportunity to earn more money than with your current CD.

IRA

The last type of account we’ll cover is an individual retirement account (IRA) . While there are a few different types, the main goal is the same—to save for retirement. IRAs were developed by the IRS to make it easier for people to save for retirement. Each IRA type has different features and benefits, but all of them are long-term, tax-advantaged savings accounts for retirement planning that are available to individuals with earned income.

While the previous accounts we’ve covered are mostly for short-term financial goals, IRAs are specifically designed for the future. One of the biggest benefits of an IRA, aside from future financial security, is that you have the ability to invest your money across multiple options, like stocks or mutual funds. Additionally, money held in an IRA usually can’t be withdrawn before age 59½ without incurring a steep penalty, though there are some exceptions like qualified education expenses.

How to save

The last thing we want to cover is how you should be saving money. Just like there are many savings accounts at your disposal, there are many ways to save. You can stick with the classic and drop your change into a piggy bank, or you can move to a modern version with savings apps like, Oportun (formerly Digit) or Qapital. However you decide to save, remember to factor savings into your budget. When you list your monthly expenses, like rent or utilities, include a set amount to go into savings alongside your other expenses, like your streaming subscriptions, groceries, and entertainment. If you haven’t made a budget before, consider the 50/30/20 rule—divide your after-tax income into three categories: needs (50% of your income), wants (30%), and savings (20%).

Key takeaways:

  • Everyone should have a basic savings account.
  • High-yield savings, CDs, and MMAs are best for achieving short-term financial goals, like vacations or saving for a down payment.
  • IRAs are best for long-term retirement planning.

There are dozens of options to help you reach your savings goals, because there’s no one-size-fits-all solution to saving. It just depends on your savings goals. It’s also not uncommon to have several types of savings accounts—it’s best to have both a long-term retirement account and an emergency fund. But, saving is an important step towards financial independence so be sure to start as soon as possible. Do you have a current savings goal? Share what steps you’re taking to achieve it in the comments below!

6 myths and realities of credit scores

Did you know credit scores are a more recent development than you think? Introduced in 1989, your credit score calculates your creditworthiness based on various factors, like your payment history and the length of your credit history. It’s important to understand how your credit score can impact your life, so keep reading as we debunk six myths about credit scores.

1. Myth: Your income and your credit score are related.

Reality: Your bank account is not a reflection of your credit score—and vice versa.

Your income doesn’t impact your credit score at all and isn’t included on your credit reports. Income is a wealth metric, along with things like your debt-to-income ratio and net worth—none of which are factored into your score. But if your income isn’t included in your credit score, what is? Factors typically included are:

  • Your bill-paying history
  • Your current unpaid debt
  • How many loans you have and what type
  • Length of your credit history
  • How much of your available credit you’re using (credit utilization rate)
  • New applications for credit
  • Whether you’ve had a debt sent to collection, a foreclosure, or a bankruptcy, and how long ago

On the other hand, having a good credit score doesn’t necessarily mean you have more money, either. While a higher salary may secure you a higher line of credit, you may find yourself dealing with lifestyle creep, leaving you more in debt.

2. Myth: You don’t need to worry about credit scores until you’re older.

Reality: Start keeping track of your credit score as soon as you turn 18.

Among the many joys of turning 18 comes the ability to apply for credit. As mentioned above, the length of your credit history is one of the factors in your credit score, so it’s recommended that you start building credit as soon as possible. Part of adulting is taking on utility bills and renting an apartment—things you can only do with a history of (good) credit. Your credit could even affect your employment! But with credit comes great responsibility—checking your credit score. You can see your credit score for free at any time if you sign up for sites like Credit Karma, and some banks offer a free credit score checkup, too. For your full credit report with detailed breakdowns, you can go online at annualcreditreport.com. Per the Consumer Financial Protection Bureau, this is the only authorized online source under federal law that provides free credit reports from all three major national credit reporting companies. In fall 2023, a program was extended to allow you to check your credit report weekly for free, though most experts suggest viewing your credit report at least once a year. And down the road, when you’re planning to make a big purchase, like a car or house, you should keep an eye on your credit three to six months in advance.

3. Myth: There’s a singular overall credit score.

Reality: There are actually several different scores.

While we often refer to your credit score as a singular thing, there’s actually a few scores. Like we previously mentioned, there are three major national credit reporting companies—Equifax, Experian, and TransUnion—and each company calculates the scores differently. Moreover, not all lenders or creditors report all their data to all of the credit bureaus, so you’ll often see differing scores among the credit bureaus.

4. Myth: Maxing out your credit card monthly isn’t an issue as long as you pay it off.

Reality: Your credit utilization rate matters.

Credit cards can be a helpful way to pay your bills while earning extra rewards. But maxing it out each month may be more problematic than you realize. One of the factors used to calculate your credit score is your credit utilization rate, which is how much credit you’re using compared to the total amount available to you. If you’re constantly maxing out your card, even if you pay it off regularly, your ratio will likely be a lot higher which can negatively impact your credit score.

5. Myth: Paying off debt increases your credit score.

Reality: It’s more complicated than that…

While debt often gets a bad rap, not all debt is created equal. Installment debt, like mortgages or student loans, is when you borrow a lump sum and repay it in fixed amounts. Paying off installment debts can actually ding your score as it reduces your totally number of credit accounts. That said, you should still work to pay off your loans—no need to pay extra interest when your credit score will recover. On the other hand, credit cards are revolving debts, where you have an ongoing line of credit that you borrow from as needed. As such, paying off credit card debt is a good way to improve your score. Do your best to avoid closing your card though—closing your card may actually lower your score because it reduces your overall available credit (and your credit history length if it’s an account you’ve had for a while). While sometimes canceling a card is necessary, such as one with a high annual fee, you may be better off with a balance transfer to avoid the hit.

6. Myth: Your score is set in stone.

Reality: You can change your score—and update your credit report, too.

The good news is that a bad credit score doesn’t have to last forever. Everyone makes mistakes, and your score will change as you work to correct them and time passes. Additionally, as more information is added or removed, your score will also change. Removed? Yes, you can remove things from your credit report! If you’re in good standing overall but have gotten yourself into a jam due to a one-time issue, you should consider sending a request for “goodwill deletion.” Of course, the creditor can still deny this, but it’s always worth a shot. Additionally, if you see information on your credit report that you don’t recognize, you should reach out the appropriate lender or creditor as soon as possible. This could be the result of fraud, an information leak, or simply incorrect information. You can also file a dispute with the appropriate credit bureaus.

Key takeaways:

  • Start keeping track of your credit as soon as possible.
  • There are three major credit reporting bureaus, and you should check them all at least once a year.
  • You have the power to change your credit score.

Credit scores seemingly impact everything, and it can be confusing to understand what your scores mean. But understanding the factors that go into your score and ways to keep your score up can take some of the stress out of credit. Don’t forget to regularly check your score and pull your full report at least once a year. Most importantly, don’t stress too much about a bad credit score—you have the power to change it. We hope this breakdown helps you feel in control of your credit. Do you have an awesome credit score? Share your tips for success in the comments!