Posts Tagged ‘online shopping’

WARNING: Tis The Season To Practice Safe Online Shopping Habits

Tuesday, November 17th, 2015
Cyber Security - Ohio CPA Firm

Keep your online Holiday shopping secure with these five tips from KnowBe4.

While it may be the most wonderful time of the year, cyber criminals are looking for ways to stuff their own stockings – at your expense. The holiday season is also a busy time of the year for scammers because, in general, more money is being spent and more people are clicking through cyberspace for the best deals and tracking their purchases. KnowBe4 recently published a blog about the top five scams shoppers should be on the lookout for, and I wanted to pass these on to our readers. Consider the following information to be an early gift from me to you, and hopefully your bank account can welcome the New Year unscathed.

Read Also: Malware Threat Spreads To Smart Phones

1. Post-Thanksgiving Madness (otherwise known as Black Friday and Cyber Monday)

Thanksgiving is just around the corner, which means shoppers are already planning their early-morning shopping strategies. Sure there are great deals up for grabs, but there are also scammers looking forward to feeding on the hype in the hopes that you will let your guard down. Believe it or not, it can be pretty easy to mistakenly fall for those offers that appear to be too good to be true simply because we have become conditioned to believe that these deals are part of the overall allure. Tip: Before completing the transaction, visit the retailer’s actual website to make sure the deal is valid. 

2. Don’t Miss This Deal – Your Facebook Friend Didn’t

Just because one of your friends shared a coupon or voucher on Facebook or another social media site, doesn’t mean it’s legit. In fact, hacked social media accounts are pretty common. Scammers like this approach because they know that you are more willing to take the bait if the scam comes from somebody you trust. If one of your friends is guilty of passing along some of these not-so-helpful posts, give them a call or send them a text to find out more. Chances are, you will be the one helping them out by letting them know that their account has been compromised. 

3. What Do You Mean ‘There’s A Problem’?! 

You’ve shopped, dropped and paid for two-day shipping and it looks like you will have your gifts in time for the next family gathering. But then your inbox gets hit with an urgent message from UPS or FedEx notifying you that there may be a problem with the delivery of your package. Fortunately, the email includes a link for you to click on to get the issue resolved. STOP! This is a common phishing scam. Scammers will often use this tactic in the hopes that you will click on the link. Before you know it, your computer has been infected with a virus … or worse – ransomware.

4. Click Here For A Refund 

Similar to the UPS/FedEx scam identified above, this tactic is another attempt to get the unsuspecting consumer to click on an infected link. In this scenario, you might receive an email from a major online retailer – Amazon, eBay, etc. – with the message that there’s a “wrong transaction,” which requires you to click on a link to secure your refund. Instead of a refund, when you click on the link you will receive the gift of a security breech instead. Clicking on these links simply opens the door for scammers to access to your personal information, which will then be sold to the highest bidder and used against you later.  

5. Use The Force Against Phishing Scams 

Wouldn’t it be nice to win tickets to see Star Wars: The Force Awakens when it is released on Dec. 18? Sure, but given what you know now, would you be willing to take the risk and click on the link in your email to find out if the offer is real? Scammers use a variety of tactics to get you to make a mistake. This scam, for example, is another way popular culture is being used against unsuspecting victims. 

Remember, whether it’s a deal, contest, sale, or any other type of offer, if it looks unbelievable or questionable (even if it appears to have been sent from a trusted source), don’t click on the link or open an attachment. If you have doubt, delete! KnowBe4 also offers readers two other great tips to keep your private information and your bank account safe 365 days a year:

  1. Never use a debit card online. Cyber criminals can (and will) wipe out your bank account in seconds once they gain access. You can protect yourself by using a credit card.
  2. Never use your credit card to shop when your computer is connected to an insecure public Wi-Fi. All online shopping should always be done on over a secure, private internet connection.

By Steve Roth, IT Director (New Philadelphia office)

Want to learn more ways to keep your computer and personal information safe? Check out these articles:

Who Is That Email Really From?

Who’s Phishing Your Data Today?

How Much Is Your Data Worth To Criminals?

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Can’t Collect Payments? New Chip Technology Could Be Hurting Business’s Bottom Lines

Thursday, October 15th, 2015

EMV Technology Impacts Netflix’s Q3 Earnings

EMV Technology - Ohio CPA Firm

Netflix, known for offering award-winning shows like House of Cards and Orange is the New Black to users online recently reported a lack-luster third quarter performance. The company points to its inability to collect payments from users who have not yet updated their Netflix account information to reflect new payment card information they may have been issued as a result of the new EMV technology.

Since the United States made the switch to EMV (EuroPay, Mastercard and Visa) chip technology in October, some companies are beginning to report unexpected side effects – sluggish growth in the third quarter. A recent story from Patrick Kulp on Mashable, a global media company, reported that Netflix’s lack-luster third quarter earnings may be directly linked to the new technology.

Read Also: Will EMV Technology Change The Online Payment Option?

Why? Because, according to Kulp, “[many] Netflix users may not want to go through the hassle of updating their payment records, and some may even use the switch as an excuse to bail on the service. As a result, the company can’t collect their fees.” Now, as third quarter earnings continue to roll in, business analysts are beginning to speculate as to what this means for businesses hoping to finish the year on a high note.

Why Was EMV Implemented?

In September, I provided insight into the reasoning behind the new chip-based technology, which pointed to the increasing number of credit card breaches as the reasoning behind the change. Over the years millions of credit card numbers and associated data have been stolen, leaving the credit card industry on the hook for the fraudulent transactions. In an effort to transfer liability from payment card companies to individual businesses, while providing greater protection to users against credit card fraud, the PCI Security Council supported the addition of EMV chip technology to the existing PCI (Payment Card Industry) Security Requirements.

The ultimate goal of EMV is to stop and prevent further fraudulent activity. Success has already been noted in countries outside the U.S. “Currently, almost half of the world’s credit card fraud happens in the U.S. where magnetic stripe technology is the standard,” stated David Navetta and Susan Ross in a blog on Data Protection Report. “Outside the U.S., an estimated 40 percent of the world’s cards and 70 percent of the terminals already use the EMV technology. These countries are reporting significantly lower counterfeit fraud levels with EMV cards than with the magnetic stripe cards.”

Click here to read the full article

Unintended Outcomes

Businesses have rushed to accommodate the transition to avoid liability for any losses that result from fraudulent transactions. From installing devices that read the new chips, to training employees to address any questions and concerns that may come up during the payment process. Unfortunately, in order to bring the American public up to speed, payment card insurers are issuing new chip-enabled cards to card holders and, in many cases, users are being issued new card numbers as well.

Companies such as Netflix are beginning to feel the pinch as they are realizing that their customers are in no hurry to update their card numbers in their accounts, which means the company can’t collect subscription payments.

“Our over-forecast in the US for Q3 was due to slightly higher-than-expected involuntary churn (inability to collect), which we believe was driven in part by the ongoing transition to chip-based credit and debit cards,” the company said in its earnings release.

Is Your Business Witnessing Unexpected Consequences?

Third-quarter earnings are just beginning to be reported, which means we are unable to adequately identify how widespread this particular issue is.

So, we want to hear from you. Since the EMV chip technology went into effect on Oct. 1, what has your experience been? Have you had trouble collecting renewal payments from your customers? Comment below or send us a quick email.

If you have a specific question about EMV technology or another business challenge, you can always let us know by filling out the brief form at the top, right side of this page. And don’t forget to subscribe to Dear Drebit to get great business tips and advice delivered directly to your inbox!

By Brian Garland, CPA (Dublin office)  

Are you looking for more ways to prevent fraud from taking control of your business? Check out these articles:

Who Is That Email Really From?

Malware Threat Spreads To Smart Phones

Businesses Beware: Sloppy Data Security Could Cost You

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What’s That ‘New’ Charge On Your Amazon Bill?

Tuesday, June 2nd, 2015
Amazon Looks To Drone Delivery - Rea & Associates - Ohio CPA Firm

Amazon appears to be unaffected by the possible repercussions of adding sales tax to customer’s invoices as its focus seems to have shifted from a superior price point strategy to high efficiency and extra speedy service. According to reports, the online giant continues to move forward with initiatives that promise even speedier delivery – further cutting the time it takes for a product to hit the customer’s front porch after the order was placed.

If you aren’t already aware, Amazon is in the process of bringing three of its data centers and a distribution center to Ohio. And yes, the company’s decision to open up shop in the Buckeye State is expected to boost the state-wide economy and add about 1,000 jobs to the ranks. But what is generating the most excitement these days (at least throughout Ohio’s retail industry) is the company’s new responsibility to collect sales tax from our state’s shoppers.

Read: If You Buy Online You Might Owe Use Tax

Traditional retailers anticipate this move will effectively level the playing field, helping encourage the growth of the state’s locally-owned businesses. Amazon, however, appears to be unaffected by the possible repercussions of adding sales tax to customer’s invoices as its focus seems to have shifted from a superior price point strategy to high efficiency and extra speedy service. [SPOILER ALERT: Drone delivery appears to be imminent!] According to reports, the online giant continues to move forward with initiatives that promise even speedier delivery – further cutting the time it takes for a product to hit the customer’s front porch after the order was placed. The company is also exploring ways to keep the cost associated with such speed minimal – information from the US Patent and Trademark Office reveals the company’s desire to “dominate the skies.”

Ohio-Based Amazon Shoppers Begin Paying Sales Tax

Paying taxes on your purchased items is not a new phenomenon. In fact, you’re probably not too shocked to see the roughly 7 percent (based on your county) charge permanently affixed to the bottom portion your receipts whenever your purchase a variety of products from a local brick-and-mortar shop. Until June 1 though, Ohio residents didn’t see this charge when purchasing products from Amazon, simply because the online retailer wasn’t required to make those living in the Buckeye State pay these taxes.

In Ohio, only vendors with a physical presence in the state, such as a storefront, warehouse, factory or call center, must charge sales tax to in-state customers. Otherwise, it’s up to individual taxpayers to report and pay the taxes when filing their annual tax returns, which is a relatively uncommon practice.

“The Ohio Department of Taxation has estimated that Ohio will lose out on about $400 million in unpaid sales or use tax on unpaid sales or use tax on so-called remote sales this year,” reported The Columbus Dispatch. “More than 5 million Ohioans filed tax returns for 2012. Of those, a little more than 50,000 paid a total of $3 million in taxes due on Internet or mail-order purchases. Retail groups and analysts welcomed the news that Amazon will start collecting taxes.”

Ohio Taxpayers Still On The Hook For Other Purchases

It may seem like it’s too soon to start thinking about your 2015 tax return, it’s actually a great time to start collecting information you will need to complete your paperwork early next year. For example, while you won’t need to collect your Amazon receipts anymore, you may have to keep tabs of your Etsy habit (for example) to help make calculating your 2015 use tax as simple as possible.

Email Rea & Associates to learn more about use tax.

By Joe Popp, JD, LLM (Dublin office)

 

Related Articles

A Use Tax Audit Could Cost You Big
Do You Have Ohio Use Tax Exposure?
Is It Fair To Require Online Retailers To Collect And Remit State Sales Tax?

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If You Buy Online You Might Owe Use Tax

Monday, March 2nd, 2015
Ohio Use Tax

Amazon purchases aren’t the only ones to consider when you sit down to file your tax return this year. Other popular online retailers and groups, including Etsy, are also depending on their consumers to pay use taxes on the products they sell. – Rea & Associates – Ohio CPA Firm

If you are one of the millions of people who love to browse and buy online, it may shock you to learn that the Ohio Department of Taxation is looking at you to declare and pay a little more when you go to file your 2014 tax return. From gifts to grocery shopping, many of us use the ease of online shopping to snag a good deal and avoid the hassle of braving the brick-and-mortar shops – especially during the holidays, but sometimes that convenience might come at a price.

Were you charged sales tax for that pair of shoes you bought last October or those books you had shipped to your house in June? If the company you made purchases from doesn’t have facilities in the state or a law that requires it to collect sales taxes for your state, then it’s likely you owe use tax to Ohio – and you have to report your use tax on Line 19 of your Ohio Form IT 1040.

Use Tax Is Not A New Tax

Declaring and paying sales and use tax on your state tax return is not a new responsibility. The Ohio Department of Taxation states that “in transactions where sales tax was due but not collected by the vendor or seller, a use tax of equal amount is due from the consumer.” In Ohio, the use tax rate is the same as sales tax rate you would have paid if sales tax was correctly charged by the vendor.  This is usually the place of purchase (or your home address for shipments from outside Ohio). You can read Ohio’s use tax law in its entirety here.

As a courtesy, Amazon provides a brief explanation of the consumer’s responsibility to pay use tax on its website. Because Amazon suspects its customers aren’t keeping a file of receipts, the online retailer provides customers with the option to create and download an Order History Report, which compiles your download, shipment, return and refund activity and can be used to help calculate use tax.

But your Amazon purchases aren’t the only ones to consider when you sit down to file your tax return this year. Other popular online retailers and groups, including Etsy, are also depending on their consumers to pay use taxes on the products they sell. So make sure you take a second look at that packing slip and receipt.

Little Box, Big Pause

While the responsibility of paying use tax isn’t new, this is the first year taxpayers in Ohio are required to certify their use tax claim before filing their return with the state. If you didn’t shop online or make a “sales tax-free” purchase, you should have nothing to worry about – simply check the box and continue on. On the other hand, if you did partake in online retail therapy in 2014 and don’t have your receipts handy, you may have to pause your tax preparation to give yourself a little more time to find out what you owe.

To find out more use tax, email Rea & Associates.

By Joe Popp, JD, LLM (Dublin office)

 

Related Articles:

Theft Safeguards To Cause Tax Return Delays In Ohio

A Use Tax Audit Could Cost You Big

Do You Have Ohio Use Tax Exposure?

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