Money

Money laundering is the crime of disguising the source of a person, group or company’s money. It is generally done to either hide an illegal income source. The act is designed to conceal the income’s source, means or nature, location, ownership or control.

The history of the term can be traced back to the prohibition era of the 1920s when large bootleggers frequently disguised their money using small businesses such as laundries. The laundries were the means by which “dirty money” generated by criminal activities was cleaned (converted) through legitimate businesses into assets that could not be easily traced back to their illegal origins. These businesses would simply report a larger amount of money than their actual income, banking it for their ‘owners’. These schemes worked best in businesses that generate most of their income from cash payments.

An important thing to remember about money laundering is that it is a criminal act even if you are unaware of the money’s illegal source. Helping another person to disguise their income is illegal.

Revolving Credit is a line of credit extended to individuals or businesses who may use it as often as desired up to a specific dollar limit. The agreement permits a purchaser to charge purchases against an account each period (generally a month) at which point they must pay part of the debt and may pay all of the debt. New purchases can be made, charged and paid off during the period. Generally there is a minimum payment amount based on the size of the debt. This is in contrast to a car or home loan in which a fixed amount is loaned to a client and a fixed payment is expected over a pre-set period of time.

Interest is usually charged on the unpaid balance of revolving accounts and in some cases the interest can be quite substantial. A typical revolving credit account is a credit card. Revolving credit is often used in business situations when the client needs a flexible account with which to buy goods and supplies that it then sells. Once the items are sold, the business pays the lender and starts the cycle again.

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Make certain to research your Credit Options before choosing any kind of Credit Cards. A lot of cards carry annual fees and high Interest Rates.  You can browse several Credit Card Offers online to make sure you get a good deal.

Always use a secure browser that encrypts or scrambles the purchase information you send over the Internet. At this point, Internet Explorer is not considered secure. Try Firefox instead. When submitting information, look for the “lock” icon on the browser’s status bar, and the phrase “https” in the URL address for a website.

When doing business with or through a web site, check the site’s privacy policy. Make sure you understand what information of yours the site might share with others. If you cannot find a privacy policy or are uncomfortable with the policy you find listed on the site, avoid that site.

Go over the refund and shipping policies of any business website you plan to order through. Make sure you are comfortable with those policies before you place an order.

Never disclose personal information such as your phone number, social security number, address, account numbers or even e-mail address unless you feel the site has a legitimate reason to request that information and you know how they plan to use it.

Avoid using sites you don’t know or companies you don’t know to do business with over the Internet. Check out a company’s background and make sure it is legitimate.

Never download files sent to you by strangers. Never follow hyperlinks provided by people you don’t know.

Keep records of your online transactions. Keep track of the e-mail sent by merchants with whom you’re doing business. Merchants often send important information regarding your purchases. Always verify that the e-mails came from the same location as the company’s website.

Track your monthly bank and credit card statements. Check for any errors or unauthorized purchases. If your credit card, debit card or checkbook is lost or stolen contact your bank or credit card company immediately. If you suspect someone is using your accounts without your permission contact your bank or credit card company immediately.

A pyramid scheme an illegal investment scam. The basis of this scam is that investors receive a commission for each new person they bring into the system. Returns are based on the number of sellers recruited. As the scheme a progress, the investment is pitched to an increasing number of potential investors until the market becomes saturated.

It is called a pyramid scheme because early investors (mainly the organizers of the scam) receive the most money, while each layer below gets less until the last people recruited get taken for all their money. If you visualize it as a pyramid, the early investors are at the top while each subsequent layer of investors spreads outward. A pyramid scheme typically has no other source of revenue other than new investors.

Because this scam relies on an ever increasing number of victims, it tends to die out quickly, making money for a few people at the top and leaving the masses at the bottom penniless.

Depreciation is an allowance or allocation to cover the reduction of an asset’s value over time. For example, items such as cars, computers and manufacturing equipment decline in value over an extended period of time as they are subjected to ongoing use. This usage is often referred to as wear and tear.

This term frequently applies to business use, but can be applied in any situation in which an asset loses value. For example, sometimes a home will drop in value due to issues such as neighborhood decline. This drop in value is depreciation. A decrease in the value of a currency is also called depreciation. For example, if the value of the dollar drops against most other currencies, it is said to be depreciated.

For tax purposes, depreciation is used as a deduction to reflect the diminishing value of assets. Depreciation decreases the overall worth of a business and is reflected as an operating expense or cost of doing business. There are many different systems used for depreciation and they can change with each tax year. For many items, their value is reduced to zero or near zero after several years, even if the item retains some resale value.

For all Checking, Money Market (Checking and Savings), the Average Daily Balance is calculated by adding the Ledger Balance in the account for each day of the statement period and dividing that figure by the total number of days in the statement period. For all of Savings accounts, Average Daily Balance is calculated by adding the Ledger Balance in the account for each day of the month and dividing that figure by the total number of days in the month.
www.harrisbank.com

This is the method by which most credit cards calculate your payment due. An average daily balance is determined by adding each day’s balance and then dividing that total by the number of days in a billing cycle. The average daily balance is then multiplied by a card’s monthly periodic rate, which is calculated by dividing the annual percentage rate by 12. A card with an annual rate of 18 percent would have a monthly periodic rate of 1.5 percent. If that card had a $500 average daily balance it would yield a monthly finance charge of $7.50. See two-cycle billing.
www.cctransact.com

The average amount in a deposit account that equals the sum of the daily balances during an accounting period, usually a month, divided by the number of days in the period. Can sometimes be used to avoid service charges or to qualify for special services. See also, minimum daily balance.
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The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time. Such payments must be sufficient to cover both principal and interest. Writing off an intangible asset investment over the projected life of the assets.
www.unisys.com

Repayment of a loan with periodic payments of both principal and interest calculated to payoff the loan at the end of a fixed period of time.
quickenloans.quicken.com

The preparation of a payment plan for a loan which allows for equal payments to be made to the creditor at consistent intervals over the life of the loan (the amortization period). Each payment covers interest accrued over the interval period with the remainder of the payment being applied to reduce the principal owed. If every payment is made on time and in full over the amortization period, the loan will be completely repaid at the end of the amortization period.
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Loan payment by equal periodic payments calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.
www.metropolitanbank.com

Payment of debt in regular, periodic installments of principal and interest, as opposed to interest only payments. Amortization is the process of reducing principal and interest in equal installment payments at specific intervals over a set term. For example, a fully amortized loan payment is a portion of which will be applied to pay the accruing interest on the loan with the remainder being applied to principal. Over time, the interest portion decreases as the loan balance decreases and the amount applied to principal increases so that the loan is paid off in the specified term .
mortgage-calculators.org

Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).
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Property and items of value owned by a person or business. The primary classifications of assets are: current assets, long-term assets, prepaid and deferred assets, and intangible assets. Current assets are cash and other liquid instruments, including accounts receivable that can be converted to cash within one year at maximum. Long-term assets are plants, equipment, real estate and other capital assets, and net of depreciation. Prepaid and deferred assets include expenditures for future costs or expenses, such as insurance, interest or rent, that are set up as assets to be amortized over an applicable period. Intangible assets are assets with a determined value, but which may not be scalable, such as goodwill, patents, copyrights, and brand name recognition.
www.lendersfair.com

Items of value owned by an individual. Assets that can be quickly converted into cash are considered “liquid assets.” These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets include real estate, personal property, and debts owed to an individual by others.
www.realestateabc.com/glossary/glossaryA.htm

Anything having commercial or exchange value that is owned by a business, institution or individual. A business’ assets might include its real estate, equipment inventory, intellectual assets such as copyrights or trademarks, and accounts receivable.
www.factorfast.com

What is Check Fraud?

Check fraud occurs when a criminal writes a check using a fake account or checks stolen from another person. In most cases, the criminal also forges or steals identification to match the name on the account. A consumer usually realizes they have been defrauded when they discover their checking account is overdrawn or they encounter someone who has received one of the fake checks.

Businesses and banks often discover the fraud when they try to collect on the check. They then find out the account is either overdrawn or non-existent.

How do I defend against Check Fraud?

• Always analyze your bank statement soon after it arrives and immediately report any suspicious transactions. If you wait too long, banks will balk at reimbursing you.
• If a stranger tries to pay for a large purchase with a check, ask for a cashier’s check or a traveler’s check instead.
• Keep your blank checks in a secure place such as a locked drawer or a safe. Never keep it in an easily accessed place.
• When shopping or paying bills in person, only take as many checks as you expect to use.
• When you have your checks made, include as little personal information as possible on the check. Usually your name and address is sufficient. Never include a social security or driver’s license number on your checks.

What is Identity Theft?

Identity theft is, according to the Federal Trade Commission (FTC), currently the most common fraud complaint in the United States. Thieves get your personal and financial information through theft (often from trash or mailboxes), trickery (misleading phone calls, emails and web sites), and public information sources (such as personal, financial and government web sites).

Once they have your information, the identity thief will obtain or create copies of your birth certificate, social security card, driver’s license, passport and other identification. Once they have this identification, they obtain credit cards, loans, checks and anything else they can use to spend money in your name.

Identify thieves often manage to spend for months before the real person realizes something is wrong. They generally use fraudulent addresses so that you do not see the bills. Until the delinquent bills find their way to you, through collections efforts or damage to your credit rating, you will not know what is going on. Once it does happen, you may find yourself denied credit, a loan, an apartment or even a job. Repairing your credit can be difficult, and even several years later, you may find yourself answering for something this identity their does using your identity.

How to Defend Against Identity Theft

Beware of unsolicited offers that seem too good to be true. Often, these offers are fraudulent attempts to get your financial information.

If you discover your credit cards or identification is missing, immediately notify the issuers and if you suspect someone stole them, notify the police.

Keep a close watch on credit card and bank statements. Always report suspected fraudulent activity immediately.

Monitor your credit reports. Look for signs of identity theft. Typical signs are credit cards or loans you do not have that appear under your name and unknown addresses listed under your report.

Protect your vital information such as credit card numbers, Social Security numbers, account passwords or other personal information. Keep them safely stored. Shred mail containing vital information before throwing it out. This goes for credit card offers too.