Nearly 73 percent of Web surfers use their online banking password for other Web sites, according to a recent study by security firm Trusteer. Apparently, most of us are choosing convenience over security.

Why is using the same password on multiple sites unsafe? First and foremost, hacking becomes a lot easier. Your password is only as strong as the weakest site on which you use it. If someone hacks a smaller site and gains access to your password, there’s a good chance that same password will work for them on one of the major banking Web sites.

That’s not to say your password is the only thing that stands between a criminal and your account—MidWest Financial uses other security technology in addition to passwords, including the multi-factor authentication which consists of your selected image and phrase as well as security questions. But why take unnecessary chances?

If creating a unique user/password combination for all of the sites you access seems daunting, try maintaining 3 “families” of passwords instead—one for critical financial sites, a second for sites that store your personal info (i.e. Facebook, email sites, etc.), and a third for generic logins. A good password is at least eight characters long, using letters (upper and lower case) numbers and symbols.

Source: Bob Sullivan, The Red Tape Chronicles

Despite what the catchy jingle that’s now stuck in all of our heads implies, not all “free” credit reports are actually free. And a free credit report every year from each of the 3 credit bureaus is what the law entitles you to—no enrolling in a trial service, becoming a member of anything, or paying any type of fee.

Unfortunately, the official site for obtaining your free reports doesn’t have the most obvious name: AnnualCreditReport.com. And though there’s no catchy jingle to help you remember it, there’s also no “free” trial memberships or sneaky fees. Be aware though that credit scores are not included.

As the February implementation deadline for the Credit Card Act of 2009 draws near, many card issuers are scrambling to come up with ways to replace revenue they will lose under the Act. Here are some things to be watching for:

Annual Fees. Although MidWest Financial does not charge an annual fee of any type for its card, other banks are finding sneaky ways to charge annual fees. For example, we have seen one report that Citibank has begun charging some customers a $35 fee unless they meet an annual minimum spending amount of $2,400.

Fee Hikes. The Act eliminated some fees that Congress considered abusive, such as over-limit fees. But it doesn’t affect all fees–for example, Balance Transfer fees are not addressed. Industry wide, these fees have been hovering around 3% for quite some time now; however, last year Bank of America increased its Balance Transfer fee to 4% and JP Morgan Chase recently raised its fee to 5%. MidWest Financial does not currently charge a Balance Transfer fee.

New Fees. Some card issuers are spending time dreaming up completely new fees (think of the airline industry with its now ubiquitous baggage fees). For example, Fifth Third Bancorp recently began charging a $19 inactivity fee for customers who don’t use their card at least once a year. MidWest Financial has no plans to add fees at this time.

What can you do? Make sure you watch your mailbox for anything from your card issuers, as it could be a notice regarding fees or a change in terms. Read all of the information you are sent to make sure you fully understand the changes. Depending on what those changes are, you may even want to consider shopping around for a new card.

Have you heard about the new credit card rules rolling out this year? The second phase of the Credit Card Act of 2009 goes into effect on February 22, 2010. Among other changes, the new law intends to ban unfair rate increases and fee traps. Before you get too excited though, you should be aware that many card issuers are looking for ways to compensate for potential losses of revenue.

While there are no additional fees or rate increases anticipated for MidWest Financial’s credit cards at this point, some financial institutions are already introducing or raising annuals fees on their cards. More changes may concern credit cards with reward programs. For example, with some cards a late payment may result in your reward points being withheld and you being charged a fee to reinstate them. And, with some programs, reward points may be worth less this coming year. MidWest Financial reward points will not be changing.

What should you do? Make sure you are aware of how the new rules are going to affect each credit card in your wallet (notices will be appearing in your mailbox) and make changes to avoid new fees. For example, consider switching to electronic statement if one of your credit cards starts charging for a paper statement. If, ultimately, you decide to change credit cards, do your research, talk to your MidWest Financial Rep about your credit card options, and compare credit cards on sites such as bankrate.com.

What happens when someone steals your credit card number and tries to use it? As a Credit Union employee (Hi, I’m Lora!) I’ve explained how our credit card fraud protection system works, but never really experienced it. That is, until Saturday morning when our Credit Card Fraud Department called me wanting to know if I had authorized anyone else to use my card and if it was in my possession. Apparently someone had tried to use my card number Friday afternoon at a Wal-Mart in California, just an hour after I had purchased my lunch with it in Ann Arbor.

I immediately cancelled the card and, though I’m inconveniently without one for the next 7-10 days, I feel better knowing that the system actually works. Even with my often erratic card use the Fraud Department caught this one immediately. It’s definitely something I’ll keep in mind when I’m feeling annoyed at having to call MidWest Financial (or walk across the hall as the case may be) and let them know what my travel plans are to ensure that my card will work.

I have another card with another bank, same erratic spending patterns. I’ve never heard from their fraud department. And that’s not to say there hasn’t been the possibility of fraud. So I’ll continue to pull the MidWest Financial card out of my wallet—‘cause I know someone’s got my back.

Let the collecting frenzy begin! The U.S. Mint is moving from featuring States to National Parks and Sites next year. The new America The Beautiful Quarters will be issued 5 per year through 2020, and the last one issued in 2021.

 Ranging from Yellowstone and Yosemite, to much-lesser-known Pictured Rocks in Michigan and Weir Farm in Connecticut, Sites are being featured in chronological order by their National Site designation. Besides creating continuing interest in coin collecting, the Quarters are sure to stoke public interest in the much lesser-known Sites as well. Check out what Sites will be released when and learn more about the America The Beautiful Quarters.

If you bought, or are thinking about buying a new car this year you may get a break on your taxes, thanks to a little-talked-about provision in the American Recovery and Reinvestment Act of 2009. According to the IRS, here’s what you need to know about the deduction:

1. State and local sales taxes paid on up to $49,500 of the purchase price of qualifying vehicles are deductible.
2. Qualified motor vehicles generally include new (not used) cars, light trucks, motor homes and motorcycles.
3. Purchases must occur after Feb. 16, 2009, and before Jan. 1, 2010.
4. This deduction can be taken regardless of whether or not you itemize other deductions on your tax return.
5. Taxpayers will claim this deduction when filing their 2009 federal income tax return next year.
6. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
7. The deduction may not be taken on 2008 tax returns.

Don’t forget to check with your tax advisor on your personal situation!

The government announced that the Cash-For-Clunkers program (CARS program) will come to a close on Monday, August 24th at 8 p.m. EST. Some dealerships are even planning to wrap up the program over this weekend.

We’ve all heard warnings about ATM skimmers. But what is an ATM skimmer? It’s a data-reading device used to steal information of your debit or credit card while you’re using an ATM machine. Could you spot one? Do you know what to look for? Thieves use a great variety of skimming devices which are often difficult to detect. One thing you could do is familiarize yourself with the look and feel of ATMs you regularly use and be on the lookout for changes in their appearance. Immediately report any unusual appearance to your financial institution and police.

Here is an example of an ATM skimmer recently discovered in our area (but not on one of our ATMs):

Peephole camera recording customer’s PIN