Author: Service2Client

Valuation Ratio Calculating the EV / 2P

Valuation Ratio Calculating the EV / 2PWhen it comes to analyzing a company’s financials, there are many avenues we can take. One way is through multiples; calculating the EV/2P multiple is the focus of this analysis.

This ratio looks at a business’ enterprise value against its proven and probable 2P reserves. While ratios or multiples are used in valuing companies, this metric is used chiefly to value gas and oil companies for energy sector analysts. Analysts use this calculation to determine the likelihood that a company’s reserve resources can underpin its functioning and expansion efforts. Along with the ratio, analysts use micro and macro factors to determine a company’s financial health, its growth prospects, and whether the business is undervalued or overvalued.

This multiple is similar in comparison to other valuation multiples such as Price-to-Book (P/B), Price-to-Earnings (PE), Enterprise Value/Earnings Before Interest, Taxes, Depreciation, and Amortization. While these other metrics can also value an oil or gas company, understanding how it’s calculated is essential to why it is sector specific.  

Breaking Down the EV/2P Ratio

EV = Market Value of Equity + Market Value of Debt – Cash and Cash Equivalents

It’s determined by the complete market worth asserted by the bond and equity holders (net of cash).

2P = Proven Reserves + Probable Reserves

The reserves of a company give analysts and investors an idea of the likelihood of the recoverability of reserves being produced and assisting the company’s growth. Proven reserves, often denoted as “P1” or “P90,” are rated at a 90 percent chance of recovering successfully. Probable reserves, also called “P50,” have a 1-in-2 chance of recovering. Both reserve types and their likelihood of being recovered are, therefore, referred to as 2P.  

It’s important to note a third category referred to as “possible reserves.” This category is not factored into the company’s valuation because the 10 percent to 50 percent likelihood of reserve recoverability is too low.  

Example

Illustrating how it’s calculated gives a more complete picture of how to analyze the results. For example, say a business‘ market capitalization is $200 million with a net debt of $100 million, giving it an enterprise value of $300 million. Assuming the company has $10 million of probable reserves, $20 million of proven reserves, and $15 million of possible reserves, the calculation is as follows:

EV = $300 million ($200 million + $100 million)

2P reserves = $30 million ($10 million + $20 million)

Therefore, $300 million/$30 million = $10

Every dollar of its market capitalization is worth $10 based on its 2P reserves. Once the calculation is determined, the ratio of the EV/2P is measured against the energy sector’s average ratio. The higher the EV/2P ratio, especially against its peers, the higher valuation the company has compared to other companies with the same amount of 2P reserves. The company’s shares are sold at a higher multiple than other companies.

It’s important to keep in mind that if a company’s financials are stronger or it’s more efficient and provides a better prospect for investors against its peers, its lofty valuation may be justified. It’s also important to not look at valuing companies exclusively with this ratio/multiple but also review other metrics and the macro-economic conditions before making a final investment decision.

While this multiple is primarily used for the energy industry, those who use it should be mindful to not analyze a company in that lens only, but to use a holistic analysis when valuing any type of company.

Preventing a Government Shut Down, Rolling Back Regulations and Clarifying Cryptocurrency Protocols

Preventing a Government Shut Down, Rolling Back Regulations and Clarifying Cryptocurrency ProtocolsFull-Year Continuing Appropriations and Extensions Act, 2025 (HR 1968) – In the nick of time before the midnight deadline that would have otherwise shut down the Federal government, Congress passed a budget bill to fund the rest of the fiscal year that ends Sept. 30. This bill increases funding for the military by $6 billion while reducing non-defense spending by $13 million. The federal funding bill also reduced the amount of funding for the District of Columbia (Washington D.C.) by $1.1 billion, which is paid for by local taxes. This final continuing resolution bill was passed in the House on March 11, in the Senate on March 14, and signed by the president on March 15.

District of Columbia Local Funds Act, 2025 (S 1077) – Just four hours after passing the CR budget bill, Senators passed this new bill to restore Washington funding back to 2024 levels. The reduction of more than $1 billion in funding threatens to impact police, fire, and other services in the city where much of Congress resides. The bill was introduced by Susan Collins (R-ME) and passed on March 14. It is currently under consideration in the House.

Bureau of Ocean Energy Management rule relating to “Protection of Marine Archaeological Resources” (SJ Res 11) – This resolution rolls back a rule imposed during the last administration by the Bureau of Ocean Energy Management. The revoked rule previously required oil and gas companies to identify and submit a report of potential archaeological resources on the Outer Continental Shelf seafloor that could be affected by development. The joint resolution was introduced by Sen. John Kennedy on Feb. 4. It passed in the Senate on Feb. 26 and in the House on March 6. The bill was signed by the president on March 14.

Protect Small Businesses from Excessive Paperwork Act of 2025 (HR 736) – Introduced by Rep. Zach Nunn (R-IA) on Jan. 24, this legislation passed in the House on Feb. 10 and is currently under consideration in the Senate. The purpose of the bill is to extend the filing deadline to the end of the year for businesses to report beneficial ownership information (BOI). This would give the Department of Treasury time to reconsider rules implemented during the Biden administration in order to make sure small businesses are not burdened by excessive and complex regulations. 

GENIUS Act of 2025 (S 919) – This bipartisan bill was introduced by Sen. Bill Hagerty (R-TN) on March 10. It would establish licensing and regulatory requirements for stablecoins, which are cryptocurrency tokens used in the crypto economy and traditional financial markets. Among its provisions, the bill would enable states to regulate stablecoin issuers with a market capitalization of under $10 billion, while larger issuers would be regulated at the federal level. This bipartisan legislation is currently in the early stages of committee reporting.

 

Dissecting the Half-Year Convention for Depreciation

Half-Year Convention for DepreciationDepreciation can help a business realize tax benefits, maintain compliance with financial reporting requirements, and project asset replacement. The half-year convention for depreciation is an important practice to understand.

For fixed assets, depreciation is recognized and recorded on a 50 percent basis for the initial and concluding years over its schedule. This supposes that fixed assets have been in service for 50 percent of their initial calendar service year upon acquisition. It’s normally implemented by taxation agencies to limit the upper limits for depreciation attestations to 50 percent of the yearly figures.

The balance of the annual 50 percent depreciation amount is recognized/recorded during the depreciation schedule’s last year, as the fixed asset will be removed from service mid-year. Regardless of the type of depreciation – straight-line, double-declining, etc. – the half-year convention applies equally.

This has been instituted because businesses were tempted to buy fixed assets in the third or fourth quarter of a fiscal year and try to deduct it fully via complete depreciation deduction. However, this convention is explicit in that fixed assets in service on or after July 1 may only deduct half of otherwise normal depreciation schedules.

How It Works

In this example, Production Equipment is purchased for $50,000 on April 1, 2022, with a useful life of 7 years. Using the half-year convention, depreciation is as follows:

Straight-line Depreciations = Cost of Asset / Useful Life = $50,000 / 7 = $7,142.86

Half-Year Convention: $7,142.86 / 2 = $3,571.43

This also assumes that there’s no scrap of salvage value. Although there are 7 years for the item’s useful life, with the half-year convention, it’s treated as 8 years for the depreciation schedule:

Year 1: $3,571.43

Year 2: $7,142.86

Year 3: $7,142.86

Year 4: $7,142.86

Year 5: $7,142.86

Year 6: $7,142.86

Year 7: $7,142.86

Year 8: $3,571.43

Context for Depreciation Convention

A depreciation convention gives context on how depreciation is performed by the company. It guides the company on available depreciation methods based on the asset’s useful life, how much the asset can be depreciated once it’s removed from service, and how depreciation is accounted/claimed in the initial and final year during the asset’s recovery period.

Depending on the situation and the type of depreciation convention involved, the following are some different conventions and how they vary:

  • Full Month permits a business to get a complete month of depreciation for the month when the asset has been put in service. There’s no depreciation taken for the month of disposal.
  • Next Month permits a business to start recording depreciation for the fixed assets the following month and being able to record one month of depreciation “when disposed of.”
  • Actual Days permits depreciation to be recorded for every single day an asset is in service during its fiscal year.
  • Mid-Quarter permits depreciation for half of the 3-month business period whenever the asset’s been put in place and disposed of (for both quarters).

Conclusion

While this is illustrative of financial reporting requirements, it’s an important consideration for business owners and their accounting professionals. Optimizing fixed asset depreciation leads to more accurate books, which will help in tax planning.

Copyright and AI-Generated Images and Videos:

Copyright and AI-Generated Images and Videos

What Businesses Need to Know to Stay Legal

Artificial intelligence (AI) tools are reshaping content creation. It is now easier for businesses to produce images and videos for use on websites, social media, and other digital outlets. All this is possible without the traditional hurdles of expensive photoshoots, special design skills, or complex video production. However, as exciting as it is, business owners must pose and confront the question of whether these AI-generated images and videos are legally safe for commercial use from a copyright perspective.

Understanding AI-Generated Content and Copyright

AI-generated content is created by training algorithms with massive datasets of existing images, videos, and text. The AI models then analyze patterns from the training data to generate new content. However, issues arise concerning the ownership of the generated content. Without clear legal guidelines, the ownership of AI-generated images and videos remains a gray area that leaves businesses and individuals vulnerable to potential disputes.

Most jurisdictions, including the United States and the EU, deny copyright protection to work purely generated by AI as it lacks human authorship. The U.S. Copyright Office stated that only content with human creative input can be eligible for protection. In its January 2025 report, the U.S. Copyright Office also states that copyrightability must be assessed on a case-by-case basis.

Laws differ globally. For instance, while the U.S. copyright office has rejected applications for AI-generated content, the U.K. allows copyright when a significant human intellectual effort guides the output.

Copyright laws do agree that a business risks infringement claims if AI-generated content resembles existing copyrighted material. So far, there has been a surge in the number of copyright lawsuits because of generative AI. A good example is Getty Images sued Stability AI, alleging its Stable Diffusion model copied millions of Getty’s photos without permission.

Generally, despite the efforts made to develop copyright laws for AI output, unlike content created by humans, there still lacks a clear legal framework for ownership and usage rights. For one, laws and legal frameworks struggle to keep up with the speed at which AI technology advances. This means that currently, no definitive, globally recognized legal standards firmly establish the copyright status of AI creations. For a business, although using AI visuals is not inherently legal or forbidden, it is best to be cautious and take due diligence.

Best Practices Every Business Owner Must Keep in Mind

  1. Read the terms of service (TOS)
    Every AI image and video generator has its own unique terms of service. Therefore, it is crucial to examine these terms carefully. Specifically, look for clauses that address issues such as commercial usage, ownership, indemnification, and TOS change policies.
  2. Understand model releases
    This especially applies where the AI-generated images may include recognizable human faces. In the same way that there are rights of publicity and privacy in traditional photography of human models, consider if this also applies to AI-generated faces.
  3. Documentation
    It is crucial to keep a record of each generated AI visual asset. Keep information such as AI platform used, prompts used, date of creation, TOS at the time of creation, and modifications made to the generated visual.
  4. Consider using well-established platforms.
    Although there is no AI platform that offers a 100 percent guarantee of copyright safety, it is safer to lean toward well-established and respected AI generators. Also, platforms trained using licensed or public domain data should be considered.
  5. Adopt the “human-in-the-loop” approach.
    This involves edits such as text overlays, color adjustments, or storyboarding. AI-generated content can be used as a starting point or for inspiration, but it is modified and refined by human designers. This results in a blend of AI assistant and human creative input to potentially mitigate copyright concerns.
  6. Seek expert legal counsel.
    When dealing with content that is central to a business identity, such as branding or major marketing campaigns, it is critical to seek guidance from an attorney specializing in intellectual property law.
  7. Stay informed
    Copyright law in the age of AI is not static; it is actively evolving. It is important, therefore, to commit to staying informed about legal developments, court rulings, and evolving practices. Business content strategies and practices also should be adjusted as the legal landscape changes.

Embrace the Future of Visuals Responsibly and Legally

The transformative power of AI to generate stunning visuals is promising to revolutionize business marketing and communication. However, business owners must approach this technology with a balanced perspective. That is, embracing its potential while avoiding copyright infringement, ensuring ethical content creation, and effectively safeguarding intellectual property assets.

Understanding the Differences Between FCFF and NOPAT

What is NOPATWhen it comes to financial analysis, there are two metrics that internal stakeholders and external users, such as investors and analysts, can use to assist with analyzing a business’s operations.

Free cash flow to the firm (FCFF) is used as part of a discount cash flow (DCF) calculation that aids in determining a company’s intrinsic value, helping investors make better informed decisions. This metric provides insight into how much cash flow is available to all funding claimants of the business (be it convertible bond investors, debt holders, and preferred and common stockholders). This is compared to free cash flow to equity (FCFE), which is how much cash flow a business can use if it has zero debt.

While there are many ways to arrive at FCFF, the following is one way to calculate it:

Step 1

Start with Net Operating Profit (NOPAT), which is determined by Earnings Before Interest and Taxes x (1 – Tax Rate)

Step 2

Add Depreciation and Amortization expenses to NOPAT

Step 3

Remove Capital Expenditures

Step 4

Remove Modifications in Net Working Capital

Further Considerations of FCFF Versus FCFE

FCFF assumes there are no payments for interest; nor have any changes in debt been factored in the company’s financial statements. FCFE factors in interest payments and any applicable changes in debt the company may have taken or paid off during the particular accounting time frame. FCFE provides analysts with the ability to determine how efficient a company is and how well (or not) it is at producing cash for equity holders.

Defining NOPAT

NOPAT is a way to see what the company’s operations produce, assuming it has no debt and, accordingly, no outstanding interest expense obligations. It gives analysts and investors an opportunity to look at potential investments with a standardized metric because companies can be seen as having debt and not having debt. It provides easier ability to see if companies can obtain and/or manage debt levels, along with other financial metrics used by investors and analysts.

Along with the already established formula to calculate NOPAT, there’s an alternate formula:

(Net Income + Tax + Interest Expense + Any Non-Operating Gains/Losses] x (1 – Tax Rate)

Operating Earnings = the company’s profits pre interest and taxes (or what the company would earn if it had zero debt, and therefore zero interest expense).

Putting NOPAT in Context

Other important considerations for NOPAT are that it excludes changes in accounts receivable, inventory, accounts payable, and inventory. Additionally, it excludes capital expenditures but accounts for amortization and depreciation.

How NOPAT Assists Analysts and Investors

Businesses can use this data to see how this metric drills down on the business’s core functions. It’s a way to determine how profitable or not a business’ core functions are over shorter and longer time frames. It helps businesses determine how efficient a company is against its competitors since it removes debt and tax comparisons.

Analysis is easier for both businesses looking for acquisitions and for investors. NOPAT helps investors determine which companies are most efficient within their sector based on their main functions. It helps remove the “noise” of debt levels and tax situations.

Looking at these two metrics at face value can seem daunting, but after breaking them down and understanding the differences, it’s easier to see how they aid in financial analysis.

Defining Net Revenue Retention (NRR)

What is Net Revenue Retention (NRR)The subscription economy, according to Forbes, is expected to reach $1.5 trillion in revenue for businesses. With the potential likely realized this year, it’s vital to understand how it is tracked – and more importantly, how it’s able to be tracked on a separate basis.

Also known as net dollar retention (NDR), this metric calculates the proportion of recurring revenue kept from present clients, including upsells and churn, during a defined time frame. Net revenue retention (NRR) evaluates a business’s potential to keep and increase sales from their present clients.

It looks at how well a company leverages existing customer relationships to increase sales through add-ons, complimentary services, etc. It focuses on the long-term growth of recurring revenue from these relationships. It’s calculated as follows:

NRR = (Starting MRR + Expansion MRR – Churn MRR) ÷ Starting MRR

Based on the following assumptions:

Starting monthly recurring revenue: $200,000

Expansion monthly recurring revenue: $40,000

Churn monthly recurring revenue: $20,000

NRR = ($200,000 + $40,000 – $20,000) / $200,000 = 1.10 or 110%

Based on this result, the company is increasing its revenue from existing customers faster than it’s failing to keep revenue from customer churn, an important metric showing growth.

The following factors impact the formula:

Starting MRR is also referred to as the baseline recurring revenue.

Expansion MRR refers to the added sales from newly added clients, upselling, upgrades, and additions to existing customers’ services.

Churn MRR is the sales missed by customers who stopped or lowered their level and type of services with the company.

Defining a Healthy Revenue Retention Rate

Companies that have a score of more than 100 percent show they’re bringing in more revenue from the existing customer base versus what the company is losing from customer churn. If, however, it’s less than 100 percent, customer satisfaction might be lacking, and customers may either be lost or simply not interested in additional services. Since acquiring new customers is more expensive than keeping current ones, it can lead to reflection on how to improve retention rates.

Journal Entry for Recurring Revenue

Assuming there’s a 12-month contract signed for monthly services, the journal entry would be as follows for a $1,000/monthly payment for a total of $12,000.

  Debit Credit
Cash $12,000  
Unearned Recurring Subscription Income $12,000  

Once the $1,000 subscription income has been earned, the following journal entry would be entered.

  Debit Credit
Unearned Recurring Subscription Income $1,000  
Earned Recurring Subscription Income   $1,000

While each industry and business are different, using this metric can help companies determine if there’s a customer retention problem; then they can start the investigation on how to increase retention for the future.

Sources

https://www.forbes.com/councils/forbesfinancecouncil/2023/10/27/the-truth-about-recurring-revenue/

Protecting Critical Supply Chains, Recycling Programs and Victims of Digital Forgeries

s 257, hr 825, s 351, s283, s 146, s281, s246Promoting Resilient Supply Chains Act of 2025 (S 257) – Introduced by Sen. Maria Cantwell (D-WA) on Jan. 2, this bill is designed to promote resilient critical supply chains by identifying, preparing for, and responding to supply chain shocks to critical industries. The ultimate goal of the legislation is to encourage the growth and competitiveness of production and manufacturing in the United States using emerging technologies. The bipartisan legislation is currently under consideration in the Senate.

To prohibit individuals convicted of defrauding the Government from receiving any assistance from the Small Business Administration, and for other purposes (HR 825) – This bipartisan legislation would prohibit a small business with a high-level associate convicted of any crime related to financial misconduct involving a covered loan or grant from receiving any financial assistance from the SBA. It was introduced by Rep. Roger Williams (R-TX) on Jan. 28 and is currently under consideration in the House.

STEWARD Act of 2025 (S 351) – This bill was introduced by Sen. Shelley Moore Capito (R-WV) on Jan. 30. It would establish a pilot grant program to improve recycling accessibility and require the Environmental Protection Agency to collect and report on recycling and composting programs in the United States. The bipartisan bill is currently under consideration in the Senate.

Illegal Red Snapper and Tuna Enforcement Act (S 283) – This bill was introduced by Sen. Ted Cruz (R-TX) on Jan. 28 and is under consideration of the Senate. It would require the development of a standard methodology to identify the country of origin of seafood transported for sale in the United States to support enforcement against illegal, unreported and unregulated fishing.

TAKE IT DOWN Act (S 146) – Also introduced by Sen. Ted Cruz (R-TX), the purpose of this bill (also known as the Tools to Address Known Exploitation by Immobilizing Technological Deepfakes on Websites and Networks Act) is to remove visual depictions of intimate acts from the Internet. Currently, machine learning, artificial intelligence and other computer-generated technologies are being used to create digital forgeries of identifiable people, including minors, without their consent. This bipartisan legislation was introduced on Jan. 16, passed in the Senate on Feb. 13, and currently lies with the House.

TICKET Act (S 281) – This bipartisan bill would require sellers of event tickets to disclose all relevant information about ticket prices and related fees to consumers at the point of sale in order to prohibit speculative and predatory ticketing. The legislation was introduced by Sen. Eric Schmitt (R-MO) on Jan. 28 and is under consideration in the Senate.

Interstate Transport Act of 2025 (S 246) – This bill was introduced on Jan. 24 by Sen. Ted Budd (R-NC). It is designed to protect the right of citizens from any state to transport knives to other states without bumping up against state and local prohibitions. Such an act would not be subject to arrest for the possession or transport of a knife without probable cause that the person intends to commit an offense punishable by imprisonment of a year or more. The bipartisan legislation is currently under consideration in the Senate.

6 Tax Filing Tips & Important Info for 2025

6 Tax Filing Tips & Important Info for 2025As Benjamin Franklin said, there’s only two certainties in life: death and taxes. With the former, you don’t have much control over; however, the latter can be affected. That’s why we’re here to give you some tips and info about filing in our changing landscape.

Remember Key Deadlines

Whether it’s scheduling an alarm on your phone or penning it old school-style on a notepad, it’s critical to keep track of when your taxes are due. Of course, you’ll want to start early. When you do this, you have enough time to gather your info and forms, and make sure you don’t make any mistakes. That said, here are some important dates you’ll want to keep in mind.

  • April 15, 2025: Unless you request an extension, this is the most important deadline for personal income taxes. It’s also the deadline to pay any taxes you owe so you can avoid late payment penalties and interest. If you make quarterly payments, this is also your deadline. Also, there is an exception for South Carolina residents due to Hurricane Helene; their deadline is extended to May 1, 2025.
  • June 17, 2025: If you’re a U.S. citizen living abroad, including military personnel stationed outside the country, this is your deadline. Even though you automatically receive an extra two months without filing an extension, interest still applies to any unpaid tax after April 15.
  • September 15, 2025: If you’re self-employed and earn significant non-wage income, this is the third quarter estimated tax payment deadline for the 2025 tax year. 
  • October 15, 2025: This is your deadline if you filed for an extension in April. If you don’t make this date, you could pay extra fees and penalties.

Child Tax Credits Have Changed

The maximum Additional Child Tax Credit (ACTC) amount has increased to $1,700 for each qualifying child. And good news if you live in Puerto Rico: You’ll no longer be required to have three or more qualifying children to claim ACTC. Now you just need one or more.

Standard Deductions Have Increased

For 2024, here’s a snapshot:

  • Single or married filing separately – $14,600
  • Head of household – $21,900
  • Married filing jointly or qualifying surviving spouse – $29,200

For more information about the changes to 2024 taxes, go here to review.

Take Care of Name Changes Pronto

This is for those who have had a name change as a result of marriage or divorce. This also applies if you have people who work for you who have had these changes. Whether it’s you or your employees, contact the Social Security Administration as soon as possible. If names and numbers don’t align, the processing of taxes and refunds will be delayed.

Make Sure ITINS Are Current

That’s Individual Taxpayer Identification Numbers. People who have these generally don’t have a Social Security number. If this pertains to you or any of your employees, check the expiration dates; if necessary, renew them as soon as possible.

Create an IRS Online Account

When you create this account, you get secure access to your tax information, including payment history, all your tax records and other important tax data. When everything is digital, you can streamline your prep time, and it can help you identify overlooked deductions or credits.

Filling out your taxes the right way takes time. However, the smartest tactic to ensure your taxes are prepared correctly is to consult a professional tax advisor. No matter how you end up tackling your taxes, it makes good sense to start early and learn as much as you can about IRS tax changes. This way, you’ll have less chance of encountering any hiccups along the way.

Sources

Tax Tips for IRS Filing in 2025 (TY 2024) – The Boom Post

Tax season 2025: All the deadlines taxpayers should know – CBS News

Tax Time Guide 2025: Essentials needed for filing a 2024 tax return | Internal Revenue Service

What’s New in Identity Theft?

What's New in Identity Theft?Identity theft is when someone steals your personal information and then uses it to commit fraud. They may access your Social Security or Medicare number, employee ID, utility, credit card or bank account numbers. Once the scammer has this information, he can conduct all kinds of crimes, such as withdraw assets from your accounts, open and close accounts in your name, take out loans or new lines of credit in your name, and even impersonate you if they get arrested – leaving you with a criminal record you may not even know about.

How Do Scammers Steal Your Identity?

Whereas scammers used to rummage through trash cans; today they can hack into your emails, social media, and personal accounts. That’s because we conduct so many of our transactions online now, they don’t even need to be physically present to take something from you.

Today, your data – contact information (e.g., phone number, email, address) and account numbers (e.g., financial, Social Security, employment ID) are all commodities that are bought and sold by both legitimate and illicit entities. Even the most harmless retail outlets solicit information, like your email and phone number in exchange for a 15 percent discount or free shipping. They can use this information for their own purposes and/or sell compiled lists to whoever will pay for it. The more you freely put your information out there, the higher your risk of identity theft or other forms of fraud.

Warning Signs

Paid Actors: Scammers may contact you directly via phone, email or text about a security breach or an offer you can’t refuse. They are professionals – they do this all day, every day, and know how to sound convincing. They may even trick you into giving out personal details (e.g., what’s your husband’s name? Are your parents still alive? How old is your daughter?) without you even realizing it.

Check Your Trust Instinct: Most people have an innate instinct to believe in the good of others, particularly those entrusted with our assets. That’s why when your bank calls, you become immediately concerned and receptive to their efforts to protect you. However, do not trust automatically and always verify.

Move Your Money: Let’s say someone from your bank calls and says they detected an unusually large transaction from your account. They may suggest you call your bank directly to stop the transaction and give you the local number to call. When you call, you may simply reach another scammer. They will often recommend you transfer your assets to a new account and close the old one to prevent fraudulent transactions by having a new account number – which the scammer will also have. If you are asked to move your funds to another account, this is a red flag.

SIM Swapping: If your phone stops working for no apparent reason, it’s possible your SIM card (or e-SIM) has been stolen. This is the memory chip found in phones, tablets, and smartwatches that stores your contact information, text messages, and passwords. It is incredibly valuable to scammers because it can enable them to log into your financial accounts. Even if you use two-factor authentication, he can intercept the code sent to your phone to verify your identity. He can then drain your assets, make unauthorized purchases on your debit and credit cards, and even lock you out of your own social media accounts by changing your passwords. Remember, immediately contact your carrier if your phone stops working. This may indicate that your phone number has been reassigned to another SIM.

How To Stop Today’s Scammers

The quicker you detect the problem, the faster you can shut it down and the less damage can be done to your personal and financial circumstances. Consider these tips:

  • Put a freeze on your credit report with each of the three (3) credit reporting agencies – Equifax, Experian and TransUnion. You can unfreeze them any time you apply for new credit.
  • Request fraud alerts from any of the three credit bureaus.
  • Check your three (3) credit reports and your credit score every year for any changes or unfamiliar accounts.
  • Never invest based on the advice of someone you’ve only encountered online.
  • Add a trusted contact to your financial accounts, whom your financial firm may contact if you appear to be making unusual transactions.
  • Passwords are the bane of modern-day technology. One way to minimize how many you have to keep changing is to add multifactor authentication – a two-step process that requires you to enter a unique code sent via email or text message each time you log in to an online account.
  • Monitor your account activity. If you still get statements by mail, be sure to read them every month. If you do all your transactions online, review them at least once a month to ensure there are no unexplained charges.

And finally, if you ever have an encounter with a scammer, share your experience with your friends, colleagues, and family members. This is particularly helpful for older folks, who are less familiar with how technology is used these days. We tend to live in a bubble and assume our assets and our identity are safe since no one we know has ever been victimized. But in fact, some people keep quiet because they are embarrassed. Don’t be. Share your story with friends; spread the word so others are more aware and more vigilant. Fraud and identity theft can happen to anyone.

Beefing Up Laws for Illegal Immigrants and Preparing for Future Disasters

S 5,HR 152,HR 153,HR 164,HR 471, HR 187, HCon Res. 1Laken Riley Act (S 5) – A holdover from the last congressional session, this bill was re-introduced by Sen. Katie Britt (R-AL) on Jan. 6. It is similar to a 1996 law, the Illegal Immigration Reform and Immigrant Responsibility Act, that deports illegal immigrants who are found guilty of serious crimes. This new bill enables the government to detain and deport illegals who are arrested for serious crimes or misdemeanors (such as shoplifting), but they do not have to be charged or found guilty. The legislation passed in the Senate on Jan. 20 and the House on Jan. 22, and it is expected to be the first bill signed by the Trump administration.

Federal Disaster Assistance Coordination Act (HR 152) – This legislation would amend the Disaster Recovery Reform Act of 2018 to authorize a new study designed to streamline and consolidate data regarding the collection of preliminary damage assessments. It was introduced by Rep. Mike Ezell (R-MS) on Jan. 3, passed in the House on Jan. 13, and is currently in the Senate.

Post-Disaster Assistance Online Accountability Act (HR 153) – This is a disaster companion bill, also introduced by Rep. Mike Ezell (R-MS) on Jan. 3. It would create an online repository for recipients of Federal disaster assistance to meet specific reporting requirements. The bipartisan bill passed in the House on Jan. 14, and its fate also lies with the Senate.

POWER Act of 2025 (HR 164) – Also known as the Promoting Opportunities to Widen Electrical Resilience Act, this non-controversial bill was passed on Jan. 15 under a House procedure called “suspension of the rules.” It would allow Federal agencies to provide essential assistance for the emergency restoration of power and not restrict utility company recipients from also qualifying for hazard mitigation assistance if necessary. The bill amends the previous Robert T. Stafford Disaster Relief and Emergency Assistance Act (1988), which details the process for federal government assistance to state and local governments following a major disaster. The bill was introduced by Rep. Valerie Hoyle (D-OR) on Jan. 3 and currently lies with the Senate.

Fix Our Forests Act (HR 471) – The purpose of this bill is to expedite improvements in forest management activities on National Forest public lands under the jurisdiction of the Bureau of Land Management to return resilience to overgrown, fire-prone forested lands. This bipartisan legislation was introduced by Rep. Bruce Westerman (R-AR) on Jan. 16 and passed in the House on Jan. 23. It currently lies with the Senate.

MAPWaters Act of 2025 (HR 187) – This bipartisan bill authorizes the standardization, consolidation, and publication of federal waterways data regarding outdoor recreational uses by the public, as tracked by federal land and water management agencies. The legislation was introduced by Rep. Blake Moore (R-UT) on Jan. 3, passed in the House on Jan. 21, and is under consideration in the Senate.

Regarding consent to assemble outside the seat of government (HCon Res. 1) – This concurrent resolution was introduced on Jan. 3 by Rep. Michelle Fischbach (R-MN). It is a bipartisan resolution, agreed to by all four majority and minority leaders in both houses, that would allow members of the House and the Senate to assemble at a location outside the District of Columbia if it is in the public interest. The resolution passed in the House on Jan. 3 and currently rests in the Senate.