Managing your digital estate, Digital estate planning

 

How to safeguard online accounts, data in death

MOST PEOPLE have accumulated a pile of data – selfies, emails, videos and more – on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away, unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

APPLE

The iPhone maker lets you nominate a “legacy contact” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up, you’ll need an Apple device with a fairly recent operating system – iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on – including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

GOOGLE

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait – from three to 18 months – before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access – including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

FACEBOOK AND INSTAGRAM

Some social media platforms can preserve accounts for people who have died so that friends and family can honour their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialise the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TIKTOK

The video-sharing platform says that, if a user has died, people can submit a request to memorialise the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialised, it will be labelled ‘Remembering’. No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

X

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorised person can submit a request to deactivate a deceased user’s account.

PASSWORDS

Besides the major online services, you’ll probably have dozens, if not hundreds, of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, such as Keeper, Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

Related:

Digital Estate Planning: Protecting Your Digital Assets

CAPITAL MARKETS: Maximising your unit trust returns

 

Unit trust is an investment vehicle that allows you to invest in a variety of asset classes, offering diversification benefits ■ It’s important to select the best of breed unit trust funds tailored to your asset class and target market to optimise your investment porfolio. when comparing investment options, look at both the investment fee and the overall ROI that the investment offers.

Unit trust is an investment vehicle that allows you to invest in a variety of asset classes, offering diversification benefits. However, to get the most out of them, it’s important to select the best of breed funds, diversify your investments globally and invest through channels with lower management fees.

■ When comparing investment options, look at both the investment management fee and the overall ROI that the investment offers

A COUPLE of weeks ago, I met with a middle-aged couple interested in getting serious about achieving financial freedom.

During our initial consultation, they mentioned that their current investments were in the form of unit trusts recommended by a friend, who is an agent.

However, when I inquired about the specific asset classes their unit trust funds were invested in, they struggled to answer and seemed confused.

This is not an uncommon scenario. Unit trust, one of the most popular investment types in Malaysia, is often misunderstood.

Its easy accessibility and affordability makes it a seemingly a friendlier option for beginners compared to more aggressive investments.

The fact remains, there are still many aspects that are misunderstood about unit trust funds. The ease of access masks the complexities.

So, in this article, we are going to reveal five truths about unit trusts that will help investors make better investment decisions.

Misconception 1: Unit trust is a type of investment

Truth 1: Unit trust is an investment vehicle

A common misconception among new investors is that a unit trust is a standalone investment that focuses on a single asset class, such as property, gold or shares.

In reality, unit trust is an investment vehicle that allows you to invest in a variety of asset classes, offering diversification benefits.

Think of it as a basket containing a mix of investments, like equities, bonds, or even real estate investment trusts. This differs from directly buying individual stocks, where you invest solely in the equity asset class.

For example, if you are looking to invest in Malaysia equities, one option is to directly purchase stocks from several Malaysian companies on the stock market.

Alternatively, you can also invest in a Malaysian equity-type unit trust fund. While the unit trust fund is managed by a fund manager, the asset class you are investing in remains essentially the same or similar.

The specific investment vehicle that you choose is not important. What is more important is the underlying asset classes that you choose to invest into, whether it is using unit trust, exchange-traded funds (ETFS), or other vehicles.

For instance, if you purchase

Malaysian equity unit trusts from three different fund houses, you may think that you are diversifying your investments.

But in reality, these Malaysian equity funds, despite being from different fund houses, still concentrate your exposure to a single market segment.

In essence, you are putting all your eggs into one basket, ultimately investing in a single asset class.

Misconception 2: Equity unit trust funds are as risky as other high-risk investments

Truth 2: Equity unit trust funds are much safer than other high-risk investments

Unit trust funds benefit from a third-party trustee structure, which acts as a safeguard by ensuring the fund’s assets are held on behalf of investors and invested according to the trust deed.

Compared to many other investment schemes, unit trusts are indeed much safer.

Why is that? To illustrate this, let’s take a look at the accompanying diagram.

There are three parties involved in a unit trust fund in Malaysia. The first party is the unit holder, which is you.

Let’s say you invest RM100,000 capital through your fund manager. The money does not actually go into the fund manager’s bank account; it goes into a trustee account, which duty is to hold and protect your capital.

The fund manager is responsible for identifying which equities to allocate the capital to, while the trustee buys and holds the shares according to the fund manager’s instructions.

The beauty of this unit trust model is that it protects your investment.

Even if the fund manager hypothetically goes bankrupt, and has to close its business, your capital is still safe.

This is because the trustee, not the fund management house, holds your money.

Therefore, when you invest in a unit trust fund, you not only getting a return on investment (ROI), but also a return of investment – the return of your capital that you had initially put in.

Misconception 3: Investing in one or two super-performing unit trust funds can grow our serious money effectively

Truth 3: To grow your wealth effectively, you need to diversify globally

The quest for the “best” unit trust fund is a common one, but is it the right approach?

Many investors believe that investing in a single unit trust is effective enough to grow their money in the long run.

The truth is, the way to ensure the growth of your portfolio is by diversifying your asset classes globally.

Take, for example, the impressive performance of the global equities, which have shown an upward trend over the past 30 years.

Several key factors contributed to this phenomenon, including a rising global population and advancements in technology that fuel global demand and productivity.

As many businesses worldwide experience growth and increase their profit, this translates into a rise in global equities.

In contrast, if you were to invest in a share or one fund that focuses on one sector or country, the growth would be unpredictable and less sustainable in the long run.

Therefore, to achieve sustainable growth in your unit trust ROI, ensure that you are diversifying your unit trust funds globally to optimise your growth.

Misconception 4: Unit trust funds are expensive

Truth 4: Unit trust funds can be either expensive or cheap, depending on the channel and market you invest in

One crucial cost to consider for unit trust investors is the sales charge, also known as a front-end fee, applied when purchasing from your chosen fund manager.

When investing in unit trusts through traditional channels, the fees can sometimes go as high as 5%.

It’s important to scrutinise these fees, as high fees can significantly eat into your portfolio’s performance.

For example, suppose your unit trust generates an 8% return in the first year. If the front-end fee charged by your fund house is 5%, your actual return becomes only 3%.

Fortunately, with the online investment platform options and corporate unit trust advisor channel available today, there are many platforms where you can find front-end fees as low as 2% or even lower.

This makes choosing the right channel crucial, as it significantly impacts the fees you pay.

When comparing management fees of your different investments side by side, it is also important to take into account not just the percentage of the fees, but the overall returns of each type of investment and the markets that you invest in.

For example, investors often compare unit trusts to ETFS. ETFS typically boast lower average annual management fees compared to unit trusts.

Due to these lower fees, ETFS might appear to have the potential for higher returns compared to unit trusts.

On the surface, ETF may seem like a better investment option. However, this is not true for all markets.

For example, the investment environment and opportunities in developing markets are vastly different from the developed markets.

In such cases, some unit trust funds managed by experienced professionals have a higher chance of outperforming ETFS despite the higher fund management fees.

Therefore, when comparing investment options, consider the bigger picture.

Look at both the investment management fee and the overall ROI that the investment offers.

Misconception 5: Any unit trust fund salesperson can help you access to the best of breed unit trust funds from the whole market

Truth 5: Only selected qualified advisors can help you access the best of breed unit trust funds from the open market

To optimise your investment portfolio, consider investing in the best of breed unit trust funds tailored to your asset class and target market.

This means that if you are looking to invest in an equity fund in the local market, you should ensure that you pick the best quality fund among all the Malaysian equity funds.

But how do you identify the “best” unit trust fund for your needs? It’s not as straightforward as it seems.

The reality is that many investors rely on bankers or unit trust agents to recommend funds for them to invest in.

However, relying on these recommendations might not be the best approach, as their choices are often limited to the funds offered by their own companies or fund houses.

Therefore, the best recommendation they can make may not be the best fund for you to invest in.

Let’s take the example of several Malaysia equity funds under a single fund house.

The best performing fund within the single fund house, Fund A has achieved an ROI of just under 60% over a five-year period, which is quite impressive.

However, when we broaden our horizons and compare Fund A’s performance to options available in the open market, we are faced with the truth that the fund we initially thought was the best performer (Fund A) ranks lower when compared to other Malaysian equity funds in the open market.

Even more striking, the actual top performer in the open market delivered nearly double the ROI!

In other words, by choosing the seemingly “best” fund within one company only, you could have missed out on potential gains of an additional 60% of ROI. That’s a significant difference!

To ensure that you’re not missing out on potentially better options, consider consulting with independent financial advisors who operate under corporate unit trust advisor company.

They can advise and recommend a wider range of unit trust funds in the open market, not just limited to options within a single fund house.

From the points that I shared above, you’re now equipped with a better understanding of the ins and outs of unit trusts.

Unit trust funds can be a valuable tool to effectively grow your money.

However, to get the most out of them, it’s important to select the best of breed funds, diversify your investments globally and invest through channels with lower management fees.

By following these steps, you can build a sturdy portfolio that will grow steadily in the long run and provide you the financial growth that you seek.

Source link

“Many investors believe that investing in a single unit trust is effective enough to grow their money in the long run. The truth is, the way to ensure the growth of your portfolio is by diversifying your asset classes globally.”

Red flag in credit card fraud

 

With huge profits, it is time for banks and telcos to invest more in improving their infrastructure against rising criminal activities.

IT came as a huge shock to my colleague when she was saddled with a RM38,000 credit card bill – five transactions that took place in Brazil within minutes of each other, a country she had never visited in her life.

The purported expense came when she was travelling overseas. She only discovered her credit card was missing three months after the incident when the bank asked if she had her card with her.

“I was with another colleague in Hong Kong at the time. He received the same SMS alert from his bank. We both called our banks at the same time. But the difference was his bank stopped the transaction because they could not verify it,” she said.

Despite showing proof that she was in Hong Kong at the time of the transaction, her bank could not provide her with the details of the case as they did not ask the merchant for it. The minute they found out the transactions were physical, they washed off their hands and sent her a letter which indicated she was liable for the RM38,000.

“They even tried to charge a currency conversion fee, late fee and interest on the disputed transactions. Finally, after days of frustrating exchanges with the bank, I reported the case to Bank Negara, and only now the bank is reaching out to the merchant to investigate,” my colleague told me.

Sadly, her quandary is not something new. Credit card fraud is on the rise in Malaysia. But financial institutions in general argue that if a card is lost or stolen, it is still the responsibility of the cardholder if any transactions take place. But shouldn’t the onus be on the bank to at least perform due diligence on red flag transactions?

A year ago, banks under the ambit of the Association of Banks in Malaysia (ABM) and Associa-tion of Islamic Banking and Financial Institutions Malaysia (AIBIM) launched their refreshed #JanganKenaScam awareness campaign.

At that time, the associations claimed that the campaign underscored the banking industry’s commitment to combating financial scams and preventing fraudulent banking activities.

They have since implemented several security measures to fight scams, such as migrating from the SMS One-Time-Password (OTP), tightening their fraud detection rules, imposing a cooling-off period for first-time online banking registrations, restricting secure authentications to a single device, and setting up dedicated fraud hotlines for customers.

According to the two associations, these measures have successfully prevented fraudulent transactions worth RM351mil.

But combating fraudsters is a constant battle, with the banks themselves admitting that there is an upward trend and huge losses due to credit card fraud.

Over the years, The Star has published numerous articles highlighting scams and scammers and credit card fraud.

In fact, exactly 10 years ago, we published a front-page article on fraudulent credit and debit card transactions.

We wrote: “Many consumers are questioning the assurance banks give on Internet security after discovering that their credit and debit cards have been used in unauthorised online transactions.”

Ten years later, nothing seems to have changed. If anything, things have got worse.

A study by Ipsos last December revealed that an overwhelming majority of Malaysians have encountered scams, with a distressing number reporting substantial financial harm. The study indicated that scams are exploiting the digital realm, signalling a shift in criminal tactics that jeopardises our collective economic health.

Despite the additional security measures, the current national scam awareness campaign throws the entire burden of fighting scams on poor defenceless Malaysians, many of whom are retired, in their senior age, and somewhat gullible.

This is in stark contrast to what our neighbour down south has done – Singapore is holding the telcos and banks responsible for customers who have fallen prey to scams.

The Monetary Authority of Singapore (MAS) says financial institutions and telcos will have to compensate their customers who have been cheated if they are found to have breached their responsibilities.

These responsibilities include failure by banks to send outgoing transaction alerts to consumers and telcos failing to implement a scam filter for SMSes.

The Singapore authorities acknowledged that “responsibility for preventing scams should not lie solely with consumers but also with industry stakeholders”, such as the financial institutions and telcos.

The shared responsibility should also apply here because banks and telcos, as the primary gatekeepers, must do more to protect Malaysians.

Financial institutions play a critical role as a gatekeeper against the outflow of monies due to scams, while telcos play a supporting role as infrastructure providers for SMSes.

They must incorporate more circuit breakers and track the enormity of the scams that are taking place. Tracking is not good enough; they must also act on it.

With Budget 2025 to be tabled next week, I hope our reform-minded Finance Minister introduces stronger and better measures to help Malaysians and demand more from banks and telcos.

Banks and telcos have amazing balance sheets with huge profits. It is time that they invest more to improve the infrastructure against scamming and fraud.

Source link

Related posts:

BLACK SHEEP IN BANKS, Employees you cannot bank on, Calls for banks to bolster cyberdefences

THE FIGHT AGAINST CYBERCRIME IN FINANCIAL SERVICES

iPay88 asked to raise cybersecurity standards

DIGITAL WAVE of deception

Financial literacy and bankruptcy