Month: February 2025

Beware of AI Scams!

From revolutionizing industries, like healthcare and finance, to replacing jobs in publishing and graphics, Artificial intelligence (AI) is changing the world. Unfortunately, scammers are also using AI to con victims out of their money and personal info. Here’s what you need to know about AI scams and how to protect yourself. 

Types of AI scams

AI scams come in many forms. Here are some of the more common.

  • Deepfake scams. In these scams, fraudsters use AI to create realistic videos or audio clips, often mimicking real people. Scammers use deepfakes to impersonate business executives, family members, political figures or celebrities to trick people into transferring money or revealing sensitive information.
  • AI-powered phishing emails. Scammers use AI to craft personalized and convincing emails that mimic legitimate organizations. These emails often contain fake links or attachments designed to steal personal or financial information. 
  • Chatbot impersonation. Here, scammers deploy AI-driven chatbots to impersonate customer service representatives or company officials. These bots engage in real-time conversations, persuading victims to share sensitive information or make payments. 
  • AI voice cloning. This uses AI to replicate someone’s voice, typically a family member or close contact. Scammers use this cloned voice in phone calls to request urgent financial help. 
  • Job offer scams. In these scams, fraudsters use AI to scrape data from job boards and LinkedIn profiles before targeting job seekers with fake offers. They use automated systems to conduct interviews and request upfront fees. 

How to spot AI scams 

Don’t get caught in an AI scam! Here’s how to spot one: 

  • Unusual requests for urgency. If someone is demanding immediate action, such as transferring money, pause to verify authenticity.
  • Inconsistencies in communication. Check for inconsistencies in tone, grammar or details that don’t align with the purported sender’s usual style.
  • Requests for personal information. Legitimate organizations rarely ask for sensitive information, like passwords, Social Security numbers or credit card details, by email, text or phone call.
  • Unverified sources. If you get communication from a new email address, phone number or chatbot, cross-check it with official contact details found on the organization’s website.

How to protect yourself

  • Verify before you act. Always double-check any request for money or personal details.
  • Strengthen cybersecurity. Use strong, unique passwords and enable multi-factor authentication (MFA) for your accounts. Keep your software and devices updated to protect against vulnerabilities.
  • Be cautious with AI tools. Avoid sharing sensitive information with AI tools or chatbots unless you are certain of their legitimacy and security.
  • Educate yourself and others. Stay informed about the latest AI scams and share your knowledge with others.
  • Monitor your accounts. Regularly check your account and credit card statements for unauthorized transactions.
  • Use anti-scam technology. Install reliable antivirus software and consider tools specifically designed to detect and block phishing attempts or deepfake content.
  • Report suspicious activity. If you encounter an AI scam, report it to local authorities, the Federal Trade Commission (FTC) and/or other relevant organizations.

Stay safe!

What I Wish I Learned in School 2 of 12-Budgeting Basics: A Step-by-Step Guide to Taking Control of Your Finances

Managing your money doesn’t have to be hard! Here’s how to budget in seven simple steps.

Step 1: Know your income

Before you can plan your spending, identify exactly how much money is coming in. List all sources of income in your household, including:

  • Salary after taxes
  • Side hustle earnings
  • Investment returns
  • Any other regular inflows

Be realistic and stick to consistent, reliable income sources when calculating your monthly total.

Step 2: Track your expenses

Now you’re ready to track your spending. Keep a log of every purchase you make over 30 days. Divide your expenses into the following categories:

  • Fixed expenses, like rent or mortgage, insurance and car payments.
  • Variable expenses, like groceries, dining out and utilities.
  • Discretionary spending, like subscriptions, hobbies and shopping sprees.

Step 3: Set financial goals

Having a clear financial goal will motivate you to stick with your spending goals. For example, you may want to pay off high-interest debt, save up for a large purchase or prepare for retirement. Clarify your goals before moving on.

Break your goals into short-term goals (saving $500 in three months) and long-term goals (paying off $20,000 in student loans over five years).

Step 4: Choose a budgeting method

Choose the budgeting method that aligns with your personality and lifestyle:

  • Zero-based budgeting. In this traditional form of budgeting, every dollar is assigned a job. If you earn $3,000 monthly, allocate it to cover all expenses, saving and debt repayment until there’s no money unaccounted for.
  • 50/30/20 rule. In this plan, you’ll allocate 50% of your income for needs, like housing, food and utilities; 30% for wants, like entertainment, dining out and hobbies; and 20% for savings and debt repayment.
  • Envelope system. This plan involves putting cash for each category into labeled envelopes. When the money’s gone, the spending in that category stops.

Step 5: Trim your spending where needed

Budgeting can show you where you’re leaking money. There’s no need to sacrifice all indulgences, but trimming unnecessary expenses can free up money for savings or debt repayment.

Here are some tips for trimming expenses:

  • Cook your favorite foods at home instead of dining out.
  • Cancel subscriptions you don’t really use.
  • Shop smarter with sales, coupons and cash-back apps.
  • Choose free or low-cost entertainment.

Step 6: Build an emergency fund

Without an emergency fund, any unexpected expense can throw off your budget and set you back with your financial goals. Aim to save up at least $1,000, then gradually work up to 3-6 months’ worth of living expenses.

Step 7: Review and adjust

Life is unpredictable, and so is your budget. Review it monthly to ensure it reflects your current income, expenses and goals.

Tips for sticking to your budget

Follow these tips to stick to your budget:

  • Automate your savings.
  • Track progress and celebrate small wins.
  • If one method isn’t working, try another.
  • Use apps to help you.

Use this guide to get started on budgeting today!

Q&A: How Can I Stay Warm this Winter Without Breaking the Budget?

The temperatures are dropping, and that means your heating costs are about to soar! The good news is: You can have a well-heated home and your budget, too. Here’s how:

1.Use a programmable thermostat

Set your thermostat to lower temperatures when you’re asleep or away and to slightly higher when you’re home. According to the Department of Energy, reducing your thermostat by 7-10°F for eight hours a day can save up to 10% on heating costs yearly.

2. Seal all leaks

Check all windows, doors and attic spaces in your home for drafts. You can do this by holding a candle near these areas to see if the flame flickers, which tells you there’s a draft. Use weatherstripping or draft stoppers to seal all leaks you find.

3. Utilize zone heating

There’s no need to pay to heat areas of your home that don’t get much use. Shut the doors and vents in rooms you rarely use so the heat only works where it’s needed. You can also use space heaters in the rooms you’re occupying instead of heating your entire home.

4. Use insulated curtains

Heavy, thermal-backed curtains can block cold drafts from windows. Open them during the day to let sunlight in and close them at night to retain heat. You can also add rugs to hardwood or tile floors and dress in layers for extra warmth.

5. Reverse your ceiling fans

Most ceiling fans have a reverse setting. In the winter, set the fan to rotate clockwise at a low speed to push warm air downward.

6. Beef up your insulation

A well-insulated home is key to keeping heating costs down. Check your attic, walls and floors for sufficient insulation. If insulation is lacking, you may want to add layers or replace the existing insulation, especially if you live in an older home. This upgrade may involve an upfront cost, but it pays off in long-term savings.

7. Maintain your heating system

Maintaining your furnace and heating devices is crucial for saving on heating costs. 

First, clean or change air filters and heating devices because accumulated debris can keep the warm air from circulating. You may also want to call a professional to inspect your furnace and either clean it or upgrade it. It’ll cost, but the expense will likely be well worth the savings in heating. 

Finally, consider contacting your utility company for a free home checkup. Costs for service or upgrades can be offset by federal tax credits, and utility rebates are available for many energy-efficient upgrades.

Use these tips to keep your home comfortably heated without breaking the budget.

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