As featured in The Wall Street Journal, Money Magazine, and more!

Search: hack

I was torn when Amazon.com, the online-only retailer for books, music, and movies, became popular. I liked the convenience, but it was clear that local brick-and-mortar bookstores would have difficulty competing with Amazon’s prices in the long term. I was swayed enough to the side against Amazon when I participated in a boycott of the company when they filed for a patent for the 1-Click ordering system.

Over the years, though, I’ve come to accept Amazon.com as a part of my life as a consumer, and I shop using Amazon.com for more than just books, music, and movies. I gave into my desire for speedy delivery and joined Amazon.com Prime, as well.

BooksAmazon.com’s aggressively competitive tactics has extended recently to book publishing. With a book publishing arm, Amazon.com has the right to sell its own published books exclusively. With the new tools Amazon.com is offering authors, traditional publishers are having a hard time competing.

This week, I saw that Amazon.com is planning to open a physical, brick-and-mortar store in Seattle. It could be the first step to bring storefronts to more locations throughout the country, but that depends on the results of this one Seattle location. The purpose doesn’t seem to be to keep an inventory of books, movies, and other media on hand to sell, but to focus on Amazon.com’s own electronics, like the Kindle.

I was recently reminded of why I was wary about Amazon.com in the first place. I’ve seen what has happened to local book stores, some of which have gone out of business, and what has happened to Borders, with large, empty stores left in the wake. There are several local book stores that remain, but I can’t say whether the stores are thriving and predict how long they’ll last. I spoke with a book-lover who was mortified that I rarely shop in independent book stores and that Amazon.com is changing the landscape for consumers and hurting small business owners.

If Amazon.com extends its new store front model beyond one location in Seattle, the primary competitive target seems to be Apple, not local book stores. Yet, if the e-book, and particularly Amazon.com’s proprietary version of the e-book, becomes the preferred method of reading for more consumers, and these e-books could be purchased only from Amazon.com, local bookstores will be in danger.

What will a book store look like in the future? Will locally-owned book stores continue to exist as viable businesses?

Photo: shutterhacks
O’Reilly, The Globe and Mail, New York Times

{ 17 comments }

My Varied Job History

This article was written by in Career and Work. 17 comments.

For some people, finding the right career is easy. During formative years, perhaps one skill outshines all others, directing someone to develop that skill over time. Perhaps there is one particular area that develops into a passion, and the only choice is to follow that passion regardless of the income potential. In my formative years, I found myself interested in a wide variety of things, any of which could have developed into careers, some of which could have been very lucrative.

I can no longer recall the order of my earliest jobs. One of the first, while I was in high school, was as a computer programmer for a small consulting firm that developed custom applications for clients. I fumbled my way through the VisualBASIC programming language, which was fairly new at the time, after several years of hobbyist programming in BASIC. My assignments were relatively easy, but they gave me a chance to learn a skill that could prove to be useful — if I were to keep up with programming and turned it into a career. I studied C and C++. I spent hours of my own time writing and rewriting software for my bulletin board system that hundreds of people accessed by dialing with their computers’ modems. If I had wanted to, I could have taken my computer programming knowledge further by studying in college, but I had other plans.

Radio ShackAnother early job during my high school years was working at Radio Shack. I didn’t know much about electronics other than computers, and I didn’t know anything about sales. I left the job knowing that I had no interest in working in retail again. Customers were generally unhappy. Although the company’s catchphrase at the time was, “You’ve got questions; we’ve got answers,” a phrase I was required to utter every time I picked up the store’s phone, occasionally people asked questions for which I didn’t have an answer. Compensation was partly commission-based, and the main goal seemed to be to push the TSP (Tandy Service Plan), which even as a teenager I could see that was almost always a bad deal for the customer. I didn’t want to push extended warranties, and I didn’t want to bother every customer by asking them for their phone number. Eventually, whatever break from school I was on that allowed me to spend time at this job was over, and I left retail never to return.

In college during the year, I occasionally allowed myself a job, but my schedule was usually overloaded with courses that prevented me from taking too much time to do anything other than academic. Additionally, I preferred to take leadership positions in several campus organizations rather than use that potentially free time to earn money. Of course, it helped that loans, scholarships, and my patient parents helped me afford my education. I also had a few office jobs during breaks to help pay, but during the semesters, my attentions were elsewhere. I spent one break working for the university’s music department library, an easy job hat gave me some quiet time to myself as the library was rarely visited.

Also, at the time I was in college, the World Wide Web was new. I developed a few departmental websites, including taking photographs of the staff, scanning various photographs in one of the university’s computer labs, and programming in HTML. I was paid for this work from the departments’ budgets. I also consulted for professors who wanted to develop their own “home pages,” teaching them how to use Netscape to design their own websites without having to teach them much, if any, HTML.

All this time, I was studying music education with the intent to teach. Despite my heavy involvement with computers, my desire had always been to teach music, preferably at the high school level. Somewhere along the way, I changed my mind, but I was the last to know.

In addition to the above, I spent breaks from school in cubicle environments. I usually worked with a temp agency, and impressed with my skills, they lined me up with jobs in corporate environments. With my computer skills, I tended to qualify for some of the more advanced entry-level jobs, sometimes working with computer databases or designing presentations.

After college I worked as a long-term substitute in a middle school while looking for a full-time teaching job that I liked. The middle school teaching experience was one of the worst experiences of my life. My next stop was a non-profit arts organization, managing projects. I had previously worked for the organization as an intern, a requirement of my music management minor. It was a nice organization to work for, except that the organization was practically bankrupt and I was losing money just by working there.

Part of the year, the job required an intense work schedule, which was fine when I was younger. But more and more, executives used cult-like techniques for rationalization of the work. Towards the end of my career there, they invited me to attend the “bring-a-guest” portion of a cult-like re-education seminar, complete with obvious plants talking about how their lives were changed after going through the program. The executives strongly encouraged to sign up for the full program. I wasn’t buying it.

My varied interests led me all over the map in terms of jobs, and made it somewhat difficult for me to focus on one particular career. I suppose one positive thing I’ve taken away from my experiences is that I can do things my way and succeed rather than following a path that’s laid out for me by tradition or common practice. After my first horrible experience teaching, I didn’t want to accept another job unless it was exactly what I wanted — and that eventually led me away from teaching. People chided me for claiming I never wanted to work in retail after a mediocre experience as a Radio Shack employee. The truth was that it wasn’t horrible, and I could have gone back to retail if necessary, but I’ve made that decision work for me so far.

If I’ve drawn any conclusions from my experiences, it would be that I’d much prefer to drive my own career, as long as I can find a profitable way to do it, than rely on employers to be concerned about my financial needs.

{ 17 comments }

The latest big business security breach affected Citigroup and about 1% of the company’s credit card customers. Hackers were able to access the customer database, finding customers’ names, credit card numbers, and email addresses free for the taking. The hackers were not able to gain access to other personal information, like Social Security numbers, card verification numbers, or birth dates. The company has started contacting affected customers.

It’s unlikely that customers whose numbers and names are significantly more susceptible to identity theft as a result of this breach, because Citi kept the more sensitive information secure. It may still be a god idea to change your password if you have online access to a Citi credit card. In cases like these, there is little that customers can do to avoid being included in a data breach short of opting out of the finance industry overall. If you never sign up for a credit card, you prevent hackers from stealing your information. Once you’re in “the system,” you have to rely on banks to protect your information appropriately.

As a result of this breach and the continual development of technology, financial institutions may soon find new regulations that require even stricter security for online access. Some financial institutions now offer options for their customers to authenticate via a SecurID — technology that uses wireless networks to provide a unique code over the air that must be verified before you can access your account. In my role at my former job, I accessed banking institutions on behalf of the company, and every bank required a different wireless device. This could be where the consumer market is heading — and if it is, it’s going to make even more sense to simplify your finances.

Additional information: According to the Wall Street Journal, Citigroup waited up to three weeks after the incident before notifying customers. The delay was due to an investigation into the issue.

Update: Of the 360,000 accounts breached, only 3,400 accounts were subject to fraudulent charges by the hackers. Customers are not responsible for fraudulent charges, though the total loss on Citi’s side due to the fraud is $2.7 million.

Yahoo Finance / AP, CNN Money

{ 14 comments }

Are Online Banks Safe?

This article was written by in Banking. 16 comments.

Anyone who is accustomed to being able to walk into the local bank branch, access accounts through a teller, and discuss banking options with an account manager on-site might still have reservations about moving money to an online-only bank. The benefits are big. Usually, online-only banks offer higher interest rates on savings and certificate of deposit accounts, and that makes the change worthwhile for most customers.

It’s common to hesitate. A bank with no physical branches seems more ethereal, as if it’s not a thing, but an idea of a thing. Does a bank you can’t visit exist in the real world? Are the customers identified by hacker-like handles and does the bank operate in a fictional world like Second Life? Will the company just disappear one day, taking advantage of the fact that closing down wouldn’t entail shuttering storefronts? Many customers simply have serious doubts about the legitimacy of a company that can’t be found by driving any number of miles.

Today, Jesus T. wrote into Consumerism Commentary with his concern:

I would really like to transfer my savings from Chase Bank to Ally Bank. At Chase I am not earning any interest. I’m just very wary because Ally is an online bank only. I don’t want to lose the money I have worked so hard to save. I was thining of opening a CD account with Ally. Any suggestions to put my mind at ease about to Ally Bank?

Online banks, as long as you’re dealing with a reputable institution, are just as safe as traditional brick-and-mortar banks. Here are some points about Ally Bank and online banking in general that could help put your mind at ease.

  • Ally is currently one of the strongest online banks right now. The announcement may have been more of a marketing move than anything else, but Ally is a potential buyer for ING Direct. For more on this bank, see my Ally Bank review.
  • Your deposits at Ally Bank, just like deposits at any other legitimate bank in the United States, are protected by FDIC insurance. Even if the bank does have a problem in the future and is acquired or goes out of business, you will be able to access your money. The likelihood of this happening is low. If you’re ever unsure about whether a bank is covered by FDIC, search for them on Bank Find, the FDIC’s database interface.
  • Online banks without local branches have lower overhead costs, so they are able to pass the savings onto the customer in the form of higher interest rates.
  • Banks that sprung up operating online only were so successful with customers that brick-and-mortar banks copied the business plan. For example, Emigrant Bank, a tiny bank in New York, gathered a wider audience when the company created Emigrant Direct and was a head-to-head competitor with ING Direct for several years.
  • Banking online with a legitimate institution is secure. Your information is encrypted when it is sent to and from a bank.

Every time you get in your car and drive to the bank, in some respect, you are putting your life at risk. When banking online, all you have to worry about is lightning.

{ 16 comments }

How to Track Gold and Silver Bullion in Quicken

by Flexo
5366063450_edfd07fe21_b[1]

Despite the convenience of Mint.com for tracking personal finances, it’s not flexible and in-depth for my needs. I’ve stuck with Quicken as a desktop program for many years. It’s unlikely I’ll move my data to the “cloud” until Mint.com or a similar service provides all the functions included in Quicken. Even the desktop version of ... Continue reading this article…

8 comments Read the full article →

Seven Great Gifts for College Graduates

by Flexo

If there is a college graduate in your life, he or she is about to receive a number of gifts. The first gift will be the realization that it can be difficult to find a job in this economy right now if the goal is to get a job in the same field of study ... Continue reading this article…

24 comments Read the full article →

Giving Your ZIP Code to Cashiers

by Flexo

One of my first jobs as a teenager, twenty-some years ago, was a salesperson at Radio Shack. Our point-of-sale system functioned on phone numbers for some reason, so whenever a customer wanted to purchase something, we asked the customer for his or her phone number. Even if the customer was buying a pack of AA ... Continue reading this article…

35 comments Read the full article →

My $10 Mistake and Articles of Interest

by Flexo

I overdrew my checking account about two weeks ago. It was a stupid mistake. I recently set up an automatic investment for my SEP IRA, $1,750 at the end of each month, transferred from my checking account at Wachovia to Vanguard, invested in VTSMX. On November 30, I checked my Vanguard account, and I didn’t ... Continue reading this article…

7 comments Read the full article →
Page 1 of 912345···Last »