The past few years have seen millions of Brits put at increased risk of identity theft by banks, retailers, and government departments who have failed to effectively secure the personal details of their customers and staff.
1 HM Revenue and Customs was at the centre of the UK's biggest data breach incident in November 2007. The child benefit records of 25 million people were lost in the post, including names, addresses as well as bank and building society details. The sensitive information had been placed on two computer disks that were destined for the National Audit Office.
2 Nationwide Building Society customers were put at increased risk of identity theft after an employee's laptop was stolen. The laptop contained details of 11 million of the society's customers. Money watchdog, the Financial Services Authority took such a dim view of the data loss that it fined the mortgage provider almost £1million.
3 Customers of cut price clothes retailer, TK Maxx, discovered, around the same time, that their credit card details may have fallen into the hands of identity fraudsters over a 4 year period. It was believed criminals had hacked the firm's computers using wireless technology. It was also estimated that, world-wide, more than 46 million credit card details had been intercepted in the scam. This total included details from the US based retailer's 210 UK stores.
4 Personal details of three million British learner drivers went missing in 2007 when computer equipment belonging to a third party contractor, working for the Driver and Vehicle Licensing Agency, went missing. The Information Commissioner's Office deemed the data in this case to be less sensitive than other data loss cases as the records, which had gone missing in Iowa, did not contain financial information, such as bank account numbers.
5 Details of more than one million credit card accounts were contained on a computer disk sold, for less than £100, on Ebay to an Oxfordshire IT manager. The disk was sold in August 2008 and contained the account details of customers from a number of major financial institutions, Natwest, Royal Bank of Scotland, and American Express. Among the customer information reported to be on the disk was account information, signatures, mobile phone numbers and mothers' maiden names. The disk purchaser, who reported the bungle, said the information would have been obtainable by someone with just basic software knowledge.
6 A junior MOD official was in hot water after a laptop containing details on 600,000 potential military recruits was stolen from a car in Birmingham. The list of information stored on the portable computer was reported to include: names, addresses, bank account information, national insurance numbers as well as passport numbers.
7 HSBC ended up with egg all over its security procedures when it lost the details of 370,000 customers in April 2008. The data, which included names, dates of birth and insurance details of customers, had been placed on a disk and put in the post.
Calls have been made by security experts for UK laws to be tightened to make sure affected people are notified immediately by those who have lost their personal information. An influential group of Parliamentarians has also called for data loss to be made a criminal offence to help curb the tide of security breaches putting consumers at increased risk of identity theft
Tristan Dunston is a public relations consultant specialising in finance and privacy matters. He loves white water canoeing and photography.
Filed under Home Insurance by on Mar 11th, 2010. Comment. 
The term "closing costs" is used to describe the expenses that are commonly incurred in the process of purchasing a home. Not all costs are the same in all situations; however, there are few that will almost always be incurred. The future homeowner is responsible for covering all closing costs so it is important to be aware of them to know which are applicable. See below for a comprehensive list of most all of the potential closing costs.
1. Land transfer tax - When a home changes hands, many provinces and a few municipalities charge a property transfer tax or title transfer fee. In British Columbia, the land transfer tax is calculated as 1% of the first $200,000 of the purchase price plus 2% of the balance (e.g. for a $500,000 property, the land transfer tax will be $8,000; 1% of $200,000 = $2,000 + 2% of $300,000 = $6,000). This tax is paid at closing (appointment with solicitor) and banks do not finance this (you should think of this cost similar to, but in addition, to the down payment in that it is an out of pocket expense). First time buyers in BC however, may qualify and be exempt from this tax when buying the first home they will live in. Please contact me directly for full details on this program.
2. Appraisal fee - The lender/bank may require that you have the home appraised to confirm its market value. This is more common when the mortgage is NOT insured (i.e. when the down payment exceeds 20% of the purchase price or in a refinance when the mortgage amount is less than 80% of the home's market value). Fees vary depending on the size of the property, property type, and amount of detail required in the report, but will typically cost $300 to $400.
3. Home inspection - An inspection can help make you aware of issues related to a house's structure and systems, such as plumbing and electrical, and recommended or necessary repairs. This is at the discretion of the purchaser and is not a requirement for financing. The cost of a home inspection can range from about $350 to $450.
4. Home/fire insurance - Your lender will require proof that the property is insured in case of fire and other damage. Insurance costs vary depending on the property type and coverage obtained, however, budget for about $300 to $500 a year.
5. Legal fees - A lawyer or notary will help protect your interests by reviewing your purchase agreement, searching the property title, and ensuring that all documents are completed properly. Legal fees for a straight forward purchase will be approximately $1,100 to $1,200.
6. Title insurance - Title insurance can safeguard you against fraud and problems with your property title or survey. Fees range from $150 to $350.
7. Costs for newly constructed homes - If you are buying a brand-new home, be prepared to settle any items not quoted in the original price, including upgrades or paving and landscaping fees. New homes are also subject to 5% GST or 13% HST, although this is often included in your purchase price. A federal rebate reduces the GST or the federal part of the HST to about 3.5% for homes valued at $350,000 or less.
8. Prepaid costs - If the seller has already paid for property taxes, water bills, or other utilities in advance, you will need to reimburse these at closing. This can add to your upfront costs, but you will have then prepaid these bills for the first months in your new home.
9. Moving-in costs - Before the big day, budget for all those last minute things: $100 or more to rent a van or a few hundred dollars for professional movers, $50 to $60 for a locksmith to re-key your locks, $50 to $200 for cleaning supplies or professional cleaners, etc. Such incidentals can come to $500 or more.
10. Life and disability insurance - This type of insurance is not typically considered a "closing cost", however, it should be looked into at the time of arranging a mortgage. Life and disability insurance is about ensuring that you, as well as others possibly, will be looked after should something unfortunate happen to you either for a brief or permanent amount of time and affect your ability to earn an income.
Filed under Home Insurance by on Mar 1st, 2010. Comment.