Reviewed by Pamela Rodriguez
Fact checked by Yarilet Perez

Signing your name on a document or check seems like a pretty straightforward process. So does endorsing a check for a spouse or child who’s out of town. However, all of these actions can have unpleasant legal ramifications depending on how you do them.

Key Takeaways

• Using the wrong color ink could keep your signature from being scanned correctly.
• Even with joint accounts, it’s illegal to endorse your spouse’s signature.
• It is also illegal to sign your child’s name on the back of a check.

The Ink Color Question

Think twice about the pen you use to sign a credit card application or check. Opt for a pen with the wrong color ink, and you could trigger a fraud alert or nullify the check.

Surprisingly, the wrong color ink can be black, says Jim Angleton, president of Aegis, a corporate prepaid debit- and charge-card issuer. “If you’re applying for a credit card in person, your bank may ask you to sign the application in blue ink.”

That’s because blue ink is harder to reproduce and easier to spot on paper that’s typically filled with lots of black print. And, Angleton says, because black ink is the most widely used printer ink color, it’s the easiest color to duplicate or copy via home software and printers.

“Blue ink is preferred because when black ink is used, someone at the bank or credit card company may not be able to tell whether they are looking at a photocopy of a signature or an originally inked signature,” says Cina L. Wong, CDE, a certified and court-qualified forensic handwriting expert. “It’s easier to assume that the document is ‘original’ if it is signed in blue ink.”

“We advise signers of our documents to use blue ink as it offers a contrast to our applications, which is especially beneficial should there be any ID issues in the future,” says Angleton.

Ink Color on Checks

Signing a check or endorsing the back of a check in red ink could trigger trouble—that is, it could delay payment of the check. In extreme instances of fraud prevention, it could even void the check’s validity.

“Red ink has been considered a warning color since the Cold War era,” says Angleton. “And the thinking that red is a warning color lingers today.” Long ago, bank proofers used a red pen to circle the signature on a check if they suspected it to be fraudulent. As a result, the color remains stigmatized in the financial industry.

In the days before color copying, red didn’t photocopy well, either. Because it would appear faint or non-existent on a photocopy, red pens were considered taboo for signing or endorsing checks, says Wong.

“Today, scanners that read documents use a red laser light,” Wong explains. “When the red laser light scans the document, it turns the entire document a red color. So a signature written in red ink appears to vanish.”

Stay Away From Other Ink Colors

Other ink colors such as green, pink, or purple can be problematic on checks, too. In general, most checks are imaged, or scanned, using a super high-speed scanner. Some types of scanners are unable to detect or decipher certain colors, which means that a check might not be properly applied or might have processing issues.

Wong says that’s one possible explanation for why most government documents state “please sign in black or blue ink.”

Signing for Your Spouse

The color of ink you use isn’t the only potential legal pitfall signatures can bring. Let’s say your spouse is out of town and you want to deposit an expense check or rebate made out to them. You could find yourself in legal trouble.

Even if you’re legally married and have a joint bank account, it’s illegal to endorse your spouse’s name on the back of a check, says Charles R. Gallagher III, an attorney at Gallagher & Associates in St. Petersburg, Florida. Technically, signing someone else’s name is fraud. And that could lead to the check being denied for payment and even to your arrest if your spouse were to press charges.

No Workaround

Many think the workaround to fraud is simply signing “For Deposit Only” on the back of the check. But Gallagher says that tactic is far from foolproof. If your spouse gets angry, they could still press the legal issue and claim you stole the money.

The safest approach is getting written authorization stating that it’s OK to sign a spouse’s name on checks when they are unable to. “You can always obtain a formal power of attorney to ensure the bank won’t give you a hassle,” says Gallagher.

Letting Someone Sign for You

Got a taste for take-out Chinese but don’t feel like picking up the food? Don’t send someone else to the restaurant with your credit card.

“You sign a legal contract with the credit card provider that authorizes only you to use the credit card. You’re breaching that contract when you give another permission to use your card,” says attorney Stephen Lesavich, Ph.D., author of The Plastic Effect: How Urban Legends Influence the Use and Misuse of Credit Cards.

“That breach may result in the cancelation of the card based on the terms of the credit card contract you signed,” Lesavich adds.

Of course, your credit card company may never know you gave your spouse, bestie, or kid your credit card to use. So the charge may sail through the system without any issues.

Note

It’s best to use blue or black ink for signatures. Avoid other colors.

Being Accused of Fraud

But the person you send to pick up your food could hit a snag if the merchant asks for identification, especially if the signature on the card doesn’t match the one on the receipt. “A merchant could report fraudulent use to the credit card company,” says Lesavich. Being accused of making or permitting fraudulent credit card charges could be embarrassing to both of you. It can also result in the credit card company canceling the card and/or putting a hold on it.

You’re also opening yourself up to potential loss. Frequently permitting someone else to use your credit card may be viewed as authorizing that person to act as your “agent.” “That person may incur additional charges you are responsible for, but did not initially authorize them to make or intend for them to make,” says Lesavich. “That’s why it’s important to remember that you are financially responsible for all charges for any authorized use of your own credit card by you or another person.”

Signing Your Child’s Name

It’s illegal to sign your name or your child’s name on the back of a check that’s addressed to your child.

“Banks usually have policies on how they want a check made out to a minor to be endorsed,” says attorney Matt Reischer, Esq., CEO, LegalAdvice.com. “Some banking institutions want the child’s name spelled out and designated parenthetically as a minor with the parent’s signature underneath.”

Other banks may want the check endorsed “For Deposit Only,” followed by the child’s bank account number. That’s why it’s best to verify with your bank about its endorsement policy to prevent Grandma from having to issue a new check.

Once your child is 18 or older, check-signing rules are the same as for your spouse. Unless you have a power of attorney or written authorization, signing your child’s name on the back of a check could be viewed as fraud and lead to the bank or your child taking legal action.

When Did Mobile Deposit Start?

Mobile deposit appears to have started in 2009, when USAA Bank allowed customers to deposit their checks on their phones.

Which Word Means a Signature?

Autograph is another word for signature.

Can a Pet Have a Signature?

Yes, in over half of the states in the U.S., a pet’s paw print can be used as the signature to witness a wedding. The pets that qualify are dogs, cats, hamsters, and rabbits.

The Bottom Line

Be aware of what you can and cannot do with your signature. Let your spouse and grown-up child sign their own checks—never in red ink—and get authorization if you need to bank on their behalf. Ask your bank about what to do with checks addressed to your child. Stock up on blue-ink pens and save the other ink colors for another day. You’ll be more likely to stay out of legal trouble that way.

Fact checked by Vikki Velasquez
Reviewed by Marguerita Cheng

Earnings season marks the time when a large number of publicly traded companies release their quarterly earnings reports. Each earnings season begins one or two weeks after the last month of each quarter. Investors see most public companies release their earnings in early to mid-January, April, July, and October. The exact date of an earnings release depends on when the company’s quarter ends.

Key Takeaways

• Earnings season is when publicly traded companies release their quarterly earnings reports.
• Most earnings reports are released in January, April, July, and October.
• Investors rely on earnings reports to see the financial health of publicly traded companies.

Earnings Timeline

Based on requirements issued by the Securities and Exchange Commission (SEC), publicly traded companies must file quarterly numbers using SEC Form 10-Q and annual figures with Form 10-K reports by required deadlines. Most public companies use calendar quarters, so earnings season follows this schedule. It typically begins early to mid-January, early to mid-April, early to mid-July, and early to mid-October.

Companies may issue a press release concurrent with their quarterly reports. These press releases often predict what management expects its numbers will be. Companies that issue a press release must file SEC Form 8-K, which announces a major event for shareholders.

Note

Earnings season ends as the number of reports slows and the filing deadlines approach.

What Earnings Season Means for Investors

Investors rely on earnings calendars to anticipate news from large publicly traded companies. Analysts, traders, and investors review earnings reports, which may affect their positions in a company.

Earnings reports often affect financial markets and other investments. It is not unheard of to see shares jump or fall based on earnings. It is also a highly active time for financial news media, such as CNBC and The Wall Street Journal. There is extensive media coverage of the major earnings releases from a general recap of the earnings to whether the companies missed, met, or beat analyst expectations.

For example, on Jan. 15, 2025, the earning reports of the largest U.S. banking groups were released, including JP Morgan Chase & Co, Wells Fargo & Company, Goldman Sachs Group, Inc., BlackRock, Inc., and Citigroup Inc. and the Dow Jones Industrial Average (DJIA) posted significant gains.

What Companies File Quarterly and Annual Earnings Reports?

Public companies with active shareholders that trade on exchanges like Nasdaq and the New York Stock Exchange must report accurate quarterly and end-of-year financial data.

How Does Earnings Season Affect Trader Behavior?

Some traders look forward to earnings season, as it can be a period where they can confirm their positions. Traders may short a stock before negative earnings and watch the price drop trigger a sell-off. Conversely, high production or revenue signals a swift upward trajectory or stock price for investors. Some investors may ignore the season with its “human” factors at play.

How Can Investors View Earnings Reports?

The SEC maintains the EDGAR database which includes quarterly and annual reports of publicly traded companies.

The Bottom Line

Earnings season occurs after the end of each quarter when most public companies release their earnings reports. Companies usually release reports with a press release. Financial markets respond to earnings reports and affect shareholder behavior.

Get a term life insurance policy that fits your needs and budget

Reviewed by Anthony Battle

If your family members depend on your income, a term life insurance policy can ensure they’re taken care of if you die. While it may be difficult to face that potential reality, it’s easy to get a term life insurance policy that provides peace of mind. In some cases, you may even be able to buy term life insurance online without a medical exam. We’ll cover everything you need to know to get the right policy for your needs. 

Compare life insurance quotes with Covr Financial before buying term life insurance.

What Is Term Life Insurance?

Term life insurance is a type of life insurance that provides a lump sum (or death benefit) to a beneficiary if you die. Term life insurance typically covers you for up to 30 years. If you die while the policy is in force, your beneficiaries will receive a death benefit. However, if you die after the term has ended, there is no death benefit (in most cases). Some term policies are convertible–you can switch your term policy to a permanent policy without another health screening. 

Term life insurance protects your family from having to replace your income or cover your debts if you’re no longer around. For example, you could choose a term that lasts until you’ve paid off your mortgage, your children are grown, and your spouse no longer depends on your income. Throughout the term, you’ll pay monthly premiums in exchange for coverage. The good news is, term life insurance is much more affordable than permanent life insurance, and it’s sufficient for most people. 

How to Buy Term Life Insurance

Determine How Much Term Life Insurance You Need

Generally speaking, you should buy enough life insurance coverage to replace the income you earn for your family, including “hidden” sources of income such as health insurance and 401(k) matching, plus a little extra to cover your final expenses. If that seems overwhelming to calculate, a general rule of thumb is to buy a policy worth 10 times your annual salary, plus an extra $100,000 to $150,000 per child to cover college expenses. 

Get Quotes

Once you determine how much coverage you need, you’ll want to compare quotes across a handful of reputable providers. Our research-based roundup of the best term life insurance companies is a great place to start. If you want to vet companies yourself, be sure to research the following:

• AM Best rating: Evaluates a company’s financial stability
• J.D. Power ranking: Rates companies based on a variety of consumer-focused criteria
• NAIC complaint index: Provides a complaint index that reflects customer complaints to state regulators and how that number compares to the number expected for a company of its size
• Customer reviews on independent review sites: Gives you insight into customers’ first-hand experience

You’ll also select companies based on features that are important to you. For example, you may only want companies that offer the coverage amount you need without a medical exam. You may also evaluate companies based on their application process and the digital tools they provide. 

You can often get a quote directly from the insurer’s website, but some companies may require a phone call. Another option is using an online brokerage or aggregator sites to collect quotes from multiple companies without needing to fill out multiple forms. You’ll typically need to provide the following information to get a quote: 

• Personal data: What is your zip code or address, citizenship status, social security number, date-of-birth, gender, height, and weight?
• Financial data: What’s your outstanding mortgage balance, your income, and your assets? You may also be asked how many children you have, too.
• Lifestyle choices: Have you used marijuana, tobacco, or other nicotine products within a certain period, such as the past five years? You may also be asked whether you engage in risky activities such as skydiving or rock climbing. 
• Policy choices: How much life insurance do you want, and what term do you need?
• Health history: Have you had past surgeries and other previous health conditions?
• Family medical history: Does your family have a history of certain conditions such as cancer, diabetes, heart disease, and high blood pressure? 
• Driving record: Have you had any DUIs or other driving violations?
• Credit score: Some companies may ask for your estimated credit score and might even run a hard credit check. 
• Occupation: You’ll likely pay more for life insurance if you work in a high-risk occupation. 
• Current health: You may be asked to take a medical exam, or you may be asked health screening questions. For example, you might have to provide a list of your current medications. 

Add Riders (Optional)

Some companies offer life insurance riders, which are additional features or benefits you can add to your policy. For example, you may need to purchase a rider to make your term life insurance policy eligible for renewal or conversion to a permanent policy.

Other riders may be included automatically at no additional charge. Many companies include accelerated death benefit riders, which allow you to access a portion of the death benefit while you’re still living under certain scenarios, such as terminal illness. A waiver of premium rider protects you if you become disabled and can’t pay for your policy. Decide which options are most important to you and determine whether your budget allows for the additional cost.  

Fill Out an Application

Many life insurance companies let you complete an application online. One of the main differences between applications is whether you need a medical exam. Some insurers require it, but others offer no-medical-exam life insurance to applicants in excellent health. 

Important

Some no-exam life insurance policies are instead designed for applicants in poor health. These are often called final expense or burial insurance policies. While they can be easy to get, they’re often very expensive, relative to the amount of coverage they provide.

If you get a medical exam, it typically includes a urine sample and blood test. It may also include an EKG, treadmill test, X-rays, and even a cognitive test. Some companies may offer to send someone to your home to perform the exam, making it more convenient for you. 

Purchase

Typically, your life insurance policy begins as soon as you’ve signed your policy documents and paid your first premium. Most companies will allow you to pay online via credit card, but some may require a check or bank transfer. 

Free-Look Period

During your policy’s free-look period, you can cancel without penalty and receive a refund of your paid premiums. This gives you the opportunity to ensure you are happy with your life insurance provider and policy. Laws vary by state, but insurers are typically required to provide a free look period of 10 to 30 days. Some insurers may offer a 30-day free look period to policyholders no matter which state you’re in. 

Do I Need Term Life Insurance?

If you have enough money to cover your final expenses and don’t have any dependents, you may not need term life insurance. However, if your family depends on your income to pay the bills, forgoing life insurance could leave your loved ones vulnerable to financial hardship if you die. And if you expect to have dependents in the future, getting life insurance when you’re young can be a good idea. But in this case, it may make more sense to get a permanent life insurance policy, such as whole life insurance.

Term Life Insurance Cost

The cost of your policy will depend on the term and coverage amount you choose along with any riders you add. Insurance companies also use many individual factors to determine your life insurance rates, including your current health, age, gender, smoking status, lifestyle choices, and occupation. Below are average rates people in excellent health may pay for a 30-year term policy based on their age. 

Source: Term4sale.com

Source: Term4sale.com

Best Term Life Insurance Companies

FAQ

What Is the Difference Between Term and Whole Life Insurance?

Term life insurance is temporary, while whole life insurance is designed to provide a guaranteed death benefit no matter when you pass away. Whole life insurance also has a cash value component you can borrow against. Due to these benefits, whole life insurance is significantly more expensive than term life insurance.

Is Term Life Insurance Worth It?

If you think your family’s financial well-being is worth protecting, then term life insurance is worth the cost. The best term life insurance companies offer affordable premiums, especially to younger policyholders. That said, if you don’t have any dependents and can afford your final expenses, you probably don’t need life insurance.

How Much Term Life Insurance Do I Need?

You should buy enough term life insurance to cover the income you expect to earn for your family over the course of your life. Don’t forget to account for employer benefits and other hidden sources of income as well. For a quick and easy estimate, multiply your salary by 10 and add enough to pay for your children’s college education.

Fact checked by Stella Osoba

These are interesting times for Tether. The world’s most traded cryptocurrency has also become the top choice of international criminals and others looking to make cross-border transactions out of sight of the mainstream global financial system.

As a result, Tether is attracting scrutiny from law enforcement agencies in the U.S. and EU. Meanwhile, Tether has garnered a significant investment from Wall Street titan Cantor Fitzgerald and its CEO, Howard Lutnick, Donald Trump’s pick to be commerce secretary, raising questions about potential conflicts of interest.

Key Takeaways

• With a market cap of $138 billion, Tether has become the world’s largest and most important stablecoin—and a favorite of international criminals looking to hide illegal transactions and launder money.
• Tether’s investors include Wall Street giant Cantor Fitzgerald, which is led by CEO Howard Lutnick, Donald Trump’s pick for secretary of commerce.
• Regulators in the U.S. are investigating Tether for possible violations of sanctions and anti-money laundering regulations.
• Tether’s growing financial and political influence will present unique challenges for regulators and law enforcement going forward, and its enormous size has created concerns about systemic risk.

What Is Tether and How Does it Work?

Tether was founded in 2014 by an Italian former plastic surgeon, Giancarlo Devasini, who had earlier helped develop crypto exchange Bitfinex, and American Brock Pierce, an entrepreneur who had previously co-founded Realcoin and has ties to Steve Bannon, a former White House adviser to Donald Trump.

Tether revolutionized cryptocurrency trading by offering a stable digital asset whose value is pegged to the U.S. dollar. This dollar peg is maintained through reserves that include U.S. Treasury bills, gold, Bitcoin, and various other assets.

Tether is now the world’s most traded cryptocurrency, and its market capitalization has grown from just a few billion dollars in 2019 to $138 billion in January 2025.

Why Some Criminals Like Tether

Despite its clear legitimate uses, Tether has come under increasing regulatory scrutiny, as it can also allow bad actors to move money around surreptitiously. According to a UN report from January 2024, USDT has emerged as a “preferred choice” for crime syndicates, allegedly facilitating some $17 billion in illegal trades.

The stablecoin’s appeal to criminals stems from its liquidity, relative anonymity, and ease of moving large sums across borders without traditional banking oversight. Drug cartels, sanctioned entities, and even terrorist organizations have reportedly used USDT to evade financial controls.

Important

While Bitcoin and other cryptocurrency transactions are recorded on public blockchains and can often be traced back to users (with enough resources and expertise), Tether transactions typically take place on exchanges or platforms with less stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance. This creates opportunities for illicit transactions.

Howard Lutnick’s Tether Stake and Political Implications

Cantor Fitzgerald 5% stake in Tether, valued at about $600 million, has raised eyebrows in financial and political circles. Lutnick has emerged as a powerful ally. His firm currently manages much of Tether’s claimed billions in Treasury bills, earning substantial fees in the process.

Lutnick’s roles as Trump’s transition team co-chair and, if confirmed, secretary of commerce, has sparked concerns about potential conflicts of interest, especially given investigations into the use of Tether by bad actors.

The Moral Hazard of Tether’s Growth

Tether is mostly used for legitimate applications such as facilitating cryptocurrency and token trading, providing liquidity, and offering a stable store of digital value. This activity drives Tether’s rapid adoption across global markets and its integration into mainstream financial channels.

Because of this, some experts warn that Tether’s continued expansion could pose significant risks. Some scholars suggest that Tether has become “too big to fail” within the crypto ecosystem, and its collapse could spark contagion beyond digital assets.

Tether’s resistance to comprehensive audits, combined with the company’s growing influence in various sectors—including investments in artificial intelligence and video platforms—raises further questions about prudent financial management, systemic risk, and regulatory oversight.

The Bottom Line

Tether’s upward trajectory demonstrates both the promise and perils of cryptocurrency innovation. While it has become an integral part of the digital asset infrastructure, its growing size, regulatory challenges, and potential political entanglements create a complex web of risks and concerns, highlighting the increasingly blurred lines between traditional finance, cryptocurrency, and political power.

Reviewed by Margaret James

Capital is the cash obtained through some form of financing. It is critical to a company’s growth prospects and keeps everything flowing. That said, raising capital isn’t just for companies going through hard times. It is also required by successful companies looking to grow. Companies also use debt to buy back stock or pay dividends. The two primary ways that companies finance operations are with debt and equity.

Analysts are mixed on the use of debt to buy back company stock. Some believe using debt is smart when interest rates are low while others believe it leads companies to take on too much debt. While there’s nothing wrong with debt, too much of it can risk a company’s earnings. This is why analysts look at trends in measures of market capitalization, debt capitalization, and enterprise value to assess the capital structure of a firm. Below is a look at the capital structure of McDonald’s.

Key Takeaways

• Equity capital, debt capital, financial leverage, and enterprise value are key to analyzing any company’s capital structure.
• McDonald’s debt increased between 2023 and 2024.
• The company bought back millions of shares, reducing the number of shares outstanding.
• MCD debt-to-capital ratio remained flat between 2023 and 2024.

McDonald’s Equity and Debt Capital

McDonald’s (MCD) shares closed at $304.51 on Sep. 30, 2024. The number of shares outstanding dropped 1.59% to 720 million at the end of the third quarter of 2024 from the same period in 2023.

The company’s market capitalization increased from $191.99 billion in September 2023 to $218.22 billion in September 2024. This is an ideal situation for investors, as it means that the market value of the company’s equity has gone up, but at what cost?

Total debt increased by more than 7% (from $49.75 billion to $53.41 billion) over the same period that market cap increased. Long-term debt increased by 4.6% to $38.99 billion by Sept. 30, 2024.

McDonald’s bought back millions of shares in a stock buyback program in the year between Sept. 30, 2023, and Sept. 30, 2024, which reduced the total number of shares outstanding.

McDonald’s Financial Leverage

Using a financial leverage ratio like the total debt-to-capital ratio is an important way to analyze how much debt a company has in its capital structure. Investors can use this ratio to track debt relative to equity capital over time and in comparison to other firms.

MCD’s debt-to-capital ratio remained flat at 1.15 between the end of the third quarter of 2023 to the same period in 2024. This means that the company continued to fund its operations with $1.15 worth of debt for every dollar of its capital.

Note

There were over 38,000 McDonald’s location in more than 100 countries.

McDonald’s Enterprise Value (EV)

Enterprise value (EV), also known as a takeover price, is calculated by adding the company’s market cap plus all debt minus any cash and cash equivalents. A company’s market cap only looks at its share price and the number of outstanding shares. The EV, on the other hand, factors the company’s debt capital.

McDonald’s has an enterprise value of $269.42 billion as of Sept. 30, 2024, compared to its market cap of $218.22 billion. The formula to calculate EV is:

EV = Market Cap + Total Debt and Cash

The difference between the two ($51.2 billion) is the company’s debt and cash.

Is McDonald’s a Good Investment?

This depends on your investment goals and financial situation. But, overall MCD is a strong company with strong financials despite some weaknesses in its share price. The company has consistent revenue growth ($23.12 billion to $25.49 billion between 2023 and 2024), pays investors a dividend, and has global brand recognition. Investors should be weary of lower consumer spending, changing habits, and weakness in international markets.

Can Corporate Debt Negatively Impact Share Prices?

In some cases, a company’s debt can drag down its share prices. Debt can eat away at a company’s profitability and its ability to pay dividends (if it pays them), which can lead to lower earnings. Investors may perceive higher debt as a risk—especially if it adds to its short-term debt and cannot repay it. Long-term debt, although still a risk, tends to be cheaper and more affordable than short-term debt vehicles.

Why Is a Company’s Market Capitalization Important?

A company’s market capitalization is a way to measure its market value and size. This allows investors to compare similar companies. They can use this information to analyze the risks and whether certain companies are better suited to their financial goals and situation.

The Bottom Line

Increases in McDonald’s enterprise value are because of a rise in debt, which was used to pay for billions of dollars in share repurchases and billions more in dividends paid out to investors. It does not, however, mean that McDonald’s is over-capitalized or in trouble. It means that the price of money is still very low and companies such as McDonald’s are using this cheap capital to repurchase shares and pay dividends while sitting on large amounts of cash.

Fact checked by Michael Logan
Reviewed by JeFreda R. Brown

Cybercrime is among the most significant threats to modern businesses—no matter the size of the company or its sector. With damage estimated at $10.5 trillion globally in 2025—enough to make it the world’s third-largest economy after the U.S. and China—cybercrime has become an unavoidable business risk that affects every organization with digital assets.

Here is a look at the most important ways cybercrime is affecting businesses today.

Key Takeaways

• Cybercrime and prevention are enormously expensive for just about any business today, including cybersecurity defenses, direct damage, legal fees, and compliance costs.
• Breaches erode customer trust, tarnish a company’s brand, and result in lost business.
• Companies must continually reevaluate and adapt their data storage and customer interaction policies to decrease their exposure to cyber threats.
• Attacks on one link in the supply chain can ripple through and disrupt multiple businesses.
• Cybersecurity insurance has become more expensive and harder to secure as incidents rise.

1. Direct Financial Losses

From Fortune 500 companies to small businesses, from traditional manufacturers to leading-edge tech firms, no enterprise is immune to these threats. Meanwhile, the average cost of a data breach reached $4.88 million in 2024, about a 20% jump since 2020.

These costs are the best-known outcome of cyberattacks, which derive from the following:

The Immediate Costs

These can include the following:

• Ransomware payments, which are predicted to cost more than $265 billion annually by 2031
• Emergency IT services and cybersecurity consultants
• Legal fees and potential fines
• Customer notification and credit monitoring

Operational Costs

• System downtime and productivity losses
• Revenue losses during system outages
• Emergency hardware or software purchases
• Cost of recovering or rebuilding compromised data and systems

Long-Term Financial Effects

• Increased insurance premiums
• Investment in enhanced security measures
• Staff training and security awareness programs
• Ongoing monitoring and compliance costs

Real-world examples highlight how quickly major bills come due for those targeted by cybercriminals. In 2023, MGM Resorts International (MGM) reported that a September cyberattack caused a $100 million hit to its third-quarter results. The company then spent another $10 million on consulting, legal, and other fees related to the incident.

Cybercriminals aren’t only targeting for-profit firms: London hospitals had to cancel over 800 planned operations and transfusions, as well as 700 outpatient appointments, in June 2024 because of a ransomware attack targeting their blood-test analysis system. In addition, universities across the world have been targeted, with some forced fully offline for weeks.

2. While Attacks Are Getting Quicker, the Effects Are Far Wider

Modern cyberattacks move with stunning speed. In 2023, the average time it took cybercriminals to move laterally within a network (known as “breakout time”) decreased by about a third. Thus, businesses often won’t have the time to react and contain threats before a significant attack is in place.

While the time attackers need is shrinking, their reach is expanding. Major incidents illustrate the broad effects of these attacks:

• A 2024 cyberattack on the medical payment processor Change Healthcare, which one expert called the “biggest ever cybersecurity attack on the American healthcare system,” prevented healthcare practices nationwide from receiving payments for weeks.
• A June 2024 attack on CDK Global, which provides software to thousands of car dealerships in the U.S. and Canada, affected about 15,000 dealerships, causing many to go without payments and stopping them from moving inventory off their lots.

Often, the initial numbers seem small but grow quickly:

• A 2023 breach in the systems of the ancestry tracking firm 23andMe Holding Co. (ME) originally appeared to affect only 0.1% of customers (14,000 individuals) but ultimately impacted 9 million users through access to ancestry information.
• Cloud-storage company Snowflake reported in June 2024 that 165 customers were compromised by credential theft, with just one incident exposing 560 million Ticketmaster customer records.

Note

In 2024, security experts were reporting that the number of records breached each month by hackers equaled the total number breached in all of 2023.

 3. Data Theft and Privacy Breaches

Hackers focus on stealing sensitive information that can be monetized or used for further attacks. However, the consequences of data breaches go beyond the immediate theft, impacting regulatory compliance, customer trust, and operational continuity.

Businesses are shifting resources to focus on data encryption, multi-factor authentication, and regular audits to safeguard their systems.

“Credential Theft”

Among the most-used means of hacking systems is credential theft, the unauthorized use of someone’s login information, such as usernames, passwords, or security tokens, typically to gain access to sensitive systems, accounts, or data.

4. Reputational Damage

The reputational impact of cybersecurity incidents can outlast all other consequences, affecting an organization’s relationships with customers, partners, and investors.

This includes its stock price. Research by the U.K.-based research firm Comparitech found that companies with data breaches typically saw the following:

• An immediate 3.5% drop in stock price following news of the breach
• Continued underperformance against the Nasdaq by 3.5%
• Long-term effects on their market reputation and investor confidence

The erosion of customer trust can also be significant. According to research by IBM, loss of customer trust accounted for nearly 40% of the cost of breaches. This comes from customer churn, marketing needs, and other efforts to rebuild trust after such incidents.

While all industries are affected by cyberattacks, they don’t all face the same hits to their reputation and stock price. Researchers at Comparitech found that healthcare companies had the steepest decline in share prices, lagging the Nasdaq by 10.6% in the six months after disclosure of a breach. It was followed by the finance sector (6.4% underperformance) and manufacturing (4.0%).

Long-Term Reputational Effects

The impact on a company’s reputation can be extensive over time:

• Greater difficulty acquiring new customers
• Challenges in maintaining business partnerships
• Increased scrutiny from regulators and industry watchdogs
• Higher costs for insurance and financial services
• Ongoing media and public relations challenges

5. Increased Security Costs

The investment required to prevent and respond to cyber threats represents a significant and growing business expense. Organizations face mounting pressure to strengthen their security posture through various investments.

Spike in Security Budgets

• Global cybersecurity spending is projected to total more than $1.75 trillion between 2021 and 2025.

Ongoing Operational Costs

• Staff training and security awareness programs
• Continual monitoring and threat detection
• Regular security assessments and penetration testing
• Compliance maintenance and documentation
• Higher insurance premiums

6. Supply Chain Vulnerabilities

Modern businesses depend on interconnected digital supply chains, making them susceptible to cascading risks if one link is compromised. Supply chain attacks are surging, with breaches often originating through third-party vendors. High-profile incidents, such as the SolarWinds hack, underscored how vulnerabilities in software supply chains can expose thousands of downstream companies.

Businesses are increasingly investing in third-party risk management and supply chain security measures to mitigate these growing threats.

7. Cloud Security Challenges

Cloud-based systems, essential for modern business operations, are facing unprecedented threats. In 2023, cloud-related cyber intrusions increased by 75%, largely because of systems, unpatched vulnerabilities, and the exploitation of shared environments.

To combat these risks, organizations are prioritizing investments in cloud-specific security measures, such as encryption, identity management, and multi-factor authentication.

8. Regulatory and Legal Consequences

The regulatory landscape for cybersecurity continues to evolve, creating additional compliance burdens and potential legal exposure for businesses. Here are just some of them:

• U.S. Securities and Exchange Commission: New rules require prompt disclosure of significant cybersecurity incidents to shareholders.
• EU Digital Operations Resilience Act (DORA): Enforces robust risk management practices across the financial sector.
• Global data protection laws: Extended reporting requirements, including the General Data Protection Regulation in the EU and state privacy laws in California and other U.S. states.
• Industry-specific mandates: Sectors like healthcare (HIPAA) and finance (PCI-DSS) face specific compliance directives.

Legal Exposure

The legal consequences of a breach can be severe, including not just direct legal costs but also the following:

• Personal liability: Chief information security officers are increasingly facing personal accountability for lapses in security.
• Class action lawsuits: Victims of data breaches often file suit for damages and negligence.
• Regulatory fines and penalties: Non-compliance with cybersecurity laws can lead to large financial penalties.

Note

A study by PwC found that only 15% of executives say their companies are measuring the financial impact of cyber risks to a “significant extent.”

9. Operational Changes

Cybersecurity concerns are fundamentally reshaping how businesses operate and approach digital information. At the technical level, organizations are implementing “zero-trust” security systems, moving to a model where no user or system is automatically trusted. This requires putting in place better controls over identity and access management across all systems and ensuring that users have only the minimum necessary access for their jobs.

Regular security audits and assessments have become routine operations rather than occasional checkpoints, forcing businesses to constantly assess and adjust their security posture. Companies have also had to dramatically modify their data collection and storage practices, putting in place stricter controls over what information they gather and retain.

10. Broader Business Culture Shifts

These technical changes have brought about broader cultural shifts within the business world. Security is no longer relegated to IT departments but has become a central part of many companies’ business strategy, discussed in boardrooms alongside financial and operational concerns. Employee security awareness training has evolved from annual compliance exercises to ongoing education programs that adapt to emerging threats.

Perhaps most significantly, businesses have had to reassess their relationships with vendors and partners. Security considerations now play a central role in selecting and managing vendors. This new reality isn’t going away: Cybersecurity is not just a technical requirement but a fundamental aspect of modern business operations.

How Do Cybercriminals Choose Their Targets?

Cybercriminals often choose their targets based on opportunity and perceived vulnerabilities. High-profile organizations, such as those in finance, healthcare, and retail, are attractive because of the sensitive data they hold and the potential for financial gain. Increasingly, attackers are also exploiting third-party vendors and supply chain partners to gain access to larger, more secure organizations.

How Quickly Can a Cyber Attack Take Place?

Modern cyberattacks can move with remarkable speed. In 2023, the average “breakout time” (time for attackers to move laterally within a network) was just 62 minutes, with the fastest recorded attack taking only 2 minutes and 7 seconds. For businesses, this means the window for detecting and responding to threats is extremely narrow.

Are There Particular Vulnerabilities Small and Medium-Sized Businesses Have?

Small businesses are especially vulnerable for these reasons:

• Limited resources for cybersecurity investment
• Fewer dedicated IT security personnel
• Weaker security systems
• Often seen as easier targets by criminals

The Bottom Line

Cybercrime represents a fundamental risk that affects businesses of all sizes in every industry. With global cybercrime costs estimated at $10.5 trillion in 2025, the impact extends far beyond immediate financial losses to encompass operational disruption, reputational damage, and long-term business viability. Organizations must approach cybersecurity as a core business function rather than just an IT concern.

To protect against these threats, businesses are working to implement comprehensive security measures, maintain robust incident response plans, regularly train employees on security awareness, ensure adequate insurance coverage, and stay current with evolving threats and newer regulations.

Reviewed by Margaret James

Ever get the feeling there is nothing worth watching on television, despite there being 100+ channels? That same paradox is even more significant on the web, given the enormous and ever-increasing amount of Internet content.

Key Takeaways

• Taboola is a self-branded internet “discovery platform,” that tries to curate just the right things online to users based on a person’s interests.
• The company achieves targeted content along with tailored advertising and marketing by making recommendations of what users may also like.
• Taboola’s content marketing business model relies on both user-creators as well as media publishers and advertisers.
• Today, with 1,900 employees Taboola’s journey continues, building new technologies that will help people find what’s interesting and new wherever they are.

What Is Taboola?

Taboola is a web-based platform that attempts to create a solution in the online content marketplace. Taboola’s tagline, “content you may like,” conveys a lot about its business philosophy. Recommending and connecting people to sites that may resonate with them is the core of Taboola’s business. The service appeals to audiences who don’t know what they are looking for (and the majority of habitual internet users, including educated ones, frequently fall in this category). The founder of Taboola, Adam Singolda, in an interview with Forbes, explained it this way: “I realized that there are three ways people got to consume content: (1) Search: if they knew what they were looking for and could type it (2) Social: if a friend of theirs shared it (3) Opportunistic: they just happened to be on a page, or they happened to open their TV– what’s next? I was very passionate about solving (3), and connecting people around the world with content they may like.”

In essence, Taboola claims to be the reverse of search engine results. While search engines provide precisely what the user is searching for, Taboola recommends content proactively based on user’s preferences, which are, in turn, based on Taboola’s sophisticated artificial intelligence (AI) algorithms.

Business Model

Founded in Israel, the firm is currently headquartered in New York and has offices in Singapore, Hong Kong, Tel-Aviv, and the Netherlands.

Taboola offers a content marketing service that connects content creators with content publishers. Available tools and technology includes web-based widgets with titles such as “Content You May Like,” “You May Also Like,” “Recommended for You,” or similar. These widgets carry pictures and links to related content (video, image-based slideshows, or articles) and are placed by content publishers on their sites. The linked content can be internal (from the publisher’s website or network), as well as external (leading to other sites), for which the publishers get paid a share of advertising revenue. Current publishers include sites like Business Insider, MSN, Yahoo!, USAToday among many others.

On the other side are the content creators: customers who use Taboola to drive traffic to their sites and act as advertisers who pay for this incoming traffic. These are the sites for which links can be seen in the web widgets put up on the publisher’s website.

Advertisers may also be publishers (and vice versa), depending on their specific website business model.

How Content Marketing Business Works

The players in content marketing marketplace:

• The content contributors (advertisers) who wish to drive traffic to their sites and are willing to pay for it in the role of advertisers.
• The publishers (bloggers/site owners) who put a Taboola widget on their site and get paid for displaying the links.
• The interface (Taboola) which connects the contributors and publishers and facilitates the functioning of the marketplace.

According to Taboola’s latest 10-K filing, it delivers one trillion monthly recommendations to over 600 million unique visitors. That’s an estimated 500,000 recommendations per second.

How Taboola Makes Money

In the content marketing business, the intermediary, like Taboola, is the controlling authority that:

• Engages clients (content creators advertisers) who are willing to pay for getting traffic to their sites,
• Connects publishers who can display links/widgets on their sites for advertisers’ page promotion, and
• Offers technology that enables seamless integration of a marketplace where hundreds of sites are hosting widgets/links/ads, while others are getting the desired traffic with all activity in terms of clicks, payouts, quality of content, user engagement, and similar analysis being tracked in real-time through complex algorithms designed to increase customer engagement.

For providing this marketplace, Taboola collects fees from content creators/advertisers and shares some of its percentage with publishers. It is not known what percentage is paid to publishers and speculative estimates vary, but considering the high penetration on popular portals, it is assumed to be attractive enough to keep such publishers engaged. For the third year in a row, Taboola’s earnings are at a net loss for FY 2023. However, Taboola and similar companies are considered a threat to traditional context-based offerings such as Google‘s AdSense.

The Challenges of Content Marketing Business:

Not all bodes well for this advertising revenue generation business. Of concern are the following:

• Content marketing may be against the wishes of the end-user and be perceived as spam.
• Convincing publisher sites that moving visitors to other websites is not an easy task. Taboola has been successful so far with some big publishers signing up and by relating content links to publishers’ networks. 
• Related content links often lead to spamming targets and malicious sites, which has been a common complaint.
• Methods, images, and language used by marketers are often perceived as misleading spam, promoting low-quality distasteful content, including sellable items that aren’t relevant or practical.

To circumvent these problems and allegations, Taboola has engaged in technical improvements through its algorithms and including a mandatory disclosure that is promptly displayed. It also defends content based on the user’s choices.

Another challenge is that people’s behavior differs on the Internet and real life, with many who might not pursue such topics offline keen to click on links to “Reduce Weight Quickly” or “Get Rich Quick” guide.

Development Phases 

(figures and timelines, courtesy of CrunchBase)

• Founded in early 2007, Taboola focused on Video2Video (V2V) recommendations, as it was comparatively challenging to recommend videos due to the relatively complex content type (compared to text). V2V recommendations appear after a viewer is done watching their chosen video.
• The company secured funding of $1.5 million from Evergreen Venture Partners in the same year of launch, followed by another $4.5 million the next year.
• Taboola expanded beyond pure V2V to add Text2Video (T2V) and saw tremendous growth in 2010. It signed on big-ticket clients like Bloomberg, The Huffington Post, and The New York Times.
• More investments by multiple investors followed from 2011 to 2013.
• Taboola started article recommendations (moving from video to text and slideshow content) in 2013, and it introduced mobile apps in late 2013.

Future Business Potential for Taboola

Technical advances will need to continue to be integrated and enhanced for the company to remain in business and win the trust of end-users and publishers. A few of key features include:

• Offering a unified dashboard for targeted audiences for the content they wish
• Relevant, spam-free content on the content creators’ side
• Better publisher payout than competitors

Having penetrated the larger publisher networks, Taboola’s new opportunities may lie in the small, niche publishers, which offer limited traffic but may have a large enough segment to complement other clients.

Competitors of Taboola 

• Outbrain – Started as a text-based contextual offering, Outbrain is now very much in Taboola’s territory of text, image, and video. These close competitors have a similar operating model – recommending relevant content to people through widgets on publisher sites. And both Outbrain and Taboola are the talk of the town as the alternatives du jour to Google AdSense, Facebook, and similar other contextual advertising services.
• Google AdSense – Pure contextual ad, AdSense has been the delight of both advertisers and publishers, owing to its tight control, relevant contextual ads, and optimum payouts. How Taboola plans to take on AdSense will be an interesting development to observe. 
• Facebook ads – These ads have been around for some time, but they are limited to the Facebook network and other partner sites only.
• Yahoo! ads – Like Facebook ads, they are limited to Yahoo! properties.

The Bottom Line

While the online advertisement space remains dominated by Google AdSense, Taboola offers a unique variation, generating business from recommendation-based proactive advertising. Any online business runs the risk of quick customer loss and of going from boom to bust, as a result of an inability to deal with recurring or new issues (such as spam control) or of developments in competition, such as the entry of new, innovative players offering better solutions. How Taboola and its competitors innovate will shape the online advertising arena. 

Reviewed by JeFreda R. Brown
Fact checked by Timothy Li

Southwest Airlines (LUV) has become known over the past two decades as a thriving airline company operating in a time when most airlines have been struggling.

Any company operating in the airline industry must maintain and strengthen a set of competitive advantages that differentiate it from its competitors. Southwest Airlines’ business model is based on extremely efficient operations, low-cost pricing, and innovative logistics solutions. Furthermore, its strategy also includes a deep focus on customer experience and looking ahead. Finally, none of this would be possible without a motivated team of employees. Through this sound strategy, Southwest achieved multiple competitive advantages that have allowed it to stay relevant in a rapidly changing world.

Key Takeaways

• Southwest Airlines is more flexible than most other large airlines.
• Southwest is the only large U.S. airline that is also a low-cost carrier.
• Southwest Airlines’ strategy emphasizes recruiting and retaining motivated employees.
• Southwest continues to improve its business model and practices.

The Only Large Low-Cost Airline

The collapse in demand for flights throughout 2020 nearly put several airlines out of business, but Southwest was able to survive without major layoffs. When business conditions decline, only the strong survive. Southwest Airlines is strong from both a size and a cost perspective.

One way of measuring strength is size. According to this theory, large airlines will experience declines, but they will not actually go out of business. Southwest is one of the big four airlines in the U.S., along with American Airlines (AAL), Delta (DAL), and United (UAL). This means that Southwest has bigger reserves in cash, credit, and other assets than smaller airlines.

Important

Bigger doesn’t always mean better, but it usually does mean safer when it comes to investing.

Controlling costs is also crucial to surviving a downturn, and Southwest also does well there. Low-cost carriers have several critical advantages over their competitors. They focus on providing the lowest prices for the most popular routes, which means fewer routes will need to be abandoned. Negative economic growth makes businesses and consumers more sensitive to ticket prices, the low-cost airlines’ primary advantage. Southwest is the only large airline that can compete on price.

The Right Recruits

While Southwest Airlines’ entire business model is important, arguably the most valuable competitive advantage has been its focus on hiring the right people. Southwest prides itself on being a people-oriented airline that operates with friendly and approachable employees and team members. Per its business model, Southwest hires employees who embody the company’s brand messaging and have a passion for helping customers. Southwest has stringent hiring practices and policies to ensure the right mix of team members.

Southwest Airlines has a business-oriented focus on the customer’s experience. Part of that customer experience comes from the attitude and helpfulness of the employees it hires. However, there are many more factors that go into this competitive advantage.

Flexible Policies

Southwest Airlines has set various policies and procedures that make flying with the airline easy. One of these is Southwest’s cancellation policy. The airline allows a customer to cancel a reservation up to 10 minutes before the flight’s departure. More important, the funds from the cancellation are available for a future trip. Policies such as this one ensure that the customers of Southwest Airlines remain satisfied and help build high levels of brand loyalty.

Rewards and Pricing

Southwest Airlines also has one of the better rewards programs in the industry. It gives points to customers that they can use to purchase future flights. It also has a partnership with Chase Bank that offers customers a Southwest credit card, which allows them to accumulate Southwest Airlines points when making other purchases. Keeping customers engaged is a big competitive advantage for Southwest Airlines.

Besides motivated employees and great customer service, Southwest Airlines offers one of the lowest-priced solutions for air travel. Its prices are quite low compared with other large airlines, such as Delta and American Airlines. Southwest had to build its business model around low operating costs to be able to offer low prices. It only has a few aircraft types, which helps the airline reduce its costs. It also services smaller airports that don’t charge as much for gate access. If a customer can find a lower-priced ticket, Southwest Airlines matches the price.

Continuing to Improve

Southwest Airlines has a track record for being very forward-thinking. It is boosted by a flexible business model that supports rapid change. This puts the company in a better position to deal with the disruptions caused by economic events that are beyond its control. Southwest is always looking for lower-cost solutions, and that is more important than ever before.

As U.S. costs skyrocket, more students look for free college abroad

Reviewed by Amy Soricelli
Fact checked by Timothy Li

The staggering cost of higher education in the United States has many prospective college students wondering about countries with free college and pursuing a degree abroad. While conventional wisdom still points to the benefits of having a college degree, more students and their families are seeking alternatives to lower their college tuition bills.

More Americans are looking to Europe at the countries that have free college, as the options abroad are becoming increasingly publicized as the cost of college in the U.S. grows. As this article will explore further, a handful offer free or low-cost tuition to international students and programs of study entirely in English.

Key Takeaways

• The high cost of a U.S. college education has many prospective students looking at other countries that offer free college or low-cost programs, including Norway, Finland, Sweden, Germany, France, and Denmark.
• Reduced or free college tuition in these countries can have strings attached; for example, you may need to be a doctoral student or already have one year of college under your belt before transferring.
• Although these countries offer virtually free tuition, students need to be aware that a higher cost of living in a foreign country can still put them over budget.

1. Norway

Students willing to brave exceptionally harsh winters and one of the highest costs of living in the world might consider earning their degrees in Norway.

Tuition is free at public universities for students from the European Economic Area (EEA) countries and Switzerland. This allows students to earn degrees at top-ranked institutions such as the University of Oslo, the Norwegian University of Science and Technology, and the University of Bergen.

The government introduced tuition fees for international students, which kicked in as of the 2023 fall term. The new rules don’t affect existing international students or those participating in an exchange program with partner universities.

2. Finland

College in Finland is free for students hailing from the EU, EEA, or Switzerland. However, international undergraduate students wishing to earn degrees in English will pay a minimum of €5,000 per year (approximately $5,541 per year), though many universities charge far more depending on the degree level and program of study.

However, doctoral students as well as those pursuing their studies in Finnish or Swedish, still pay no tuition regardless of their country of origin. The government also plans to offer scholarships and financial aid to international students with exceptional academic backgrounds.

Important

Although you may be able to get a free education in certain European countries, you are still responsible for other expenses, including housing, food, and transportation among others.

3. Sweden

Students qualify for tuition-free study if they are Swedish, EU, or EEA citizens. International students who pursue research-based doctoral degrees also get free tuition in Sweden.

There are some programs of study that even offer stipends to international students. Nevertheless, students should be aware that Sweden’s high cost of living may put them over budget, even when they pay nothing to earn their degrees.

4. Germany

In 2014, Germany officially removed all tuition fees for undergraduate students at public universities. With the exception of some administrative fees, this applies to U.S. citizens, too. Germany needs skilled workers, and this reality creates a win-win situation for American students.

Students enrolled in one of the country’s public universities can attend for free. What’s more, German universities offer a wide range of programs entirely in English, and an American student can earn a university degree in Germany without speaking a word of German.

Top-ranked institutions, such as the University of Munich and the University of Bonn, mean that U.S. students don’t have to trade prestige for cost. Students are responsible, though, for administrative fees and charges, which usually amount to a few hundred euros per semester.

5. France

In the past, students needed to speak French in order to attend university in France. This is no longer the case, however, as many programs of study at both public and private universities are offered in English. Students who attend public universities usually pay a few hundred dollars per year, depending on the degree level and program of study.

Over the years, France has modified its free tuition model, and some EU students pay tuition based on family income. Students who are not from the EU will pay higher tuition fees; however, the state will cover two-thirds of your education costs.

For the 2024/2025 school year, undergraduate French, EU, EEA, and Swiss students have tuition fees of $175 per year. For non-EU students, the fee is $2,850.

6. Denmark

Denmark is the same as its European peer countries with free college: students from anywhere in the EU/EEA and Switzerland can take advantage of this benefit. However, international students can pay anywhere from an average of €6,000 to €16,000 a year, making tuition a hefty price compared to other countries.

Though a smaller country, Denmark has a high standard of living and many appreciate the English options available alongside the many different kinds of subjects to study. Some of the best universities include the University of Copenhagen, Aarhus University, and the Technical University of Denmark.

Beyond Europe

Europe remains a well-known, highly sought-after destination for students seeking refuge from expensive U.S. colleges and universities, but public universities in countries such as Mexico and Brazil also have virtually free tuition. Students pay registration fees, which amount to very little when considering the exchange rates.

Some universities offer top-quality programs of study in English. Earning a degree outside of the U.S., in such countries as Mexico or Brazil, also makes it possible for students to learn highly sought-after languages of commerce, such as Spanish and Portuguese.

Americans can also attend public universities in China and pay tuition costs between $2,500 and $10,000 per academic year, which can be affordable when compared to U.S. tuition rates. The best tuition deals in China, however, are reserved for students able to pursue their studies in Chinese.

Can I Get Free Tuition in the U.S.?

Free tuition is becoming a reality in the United States. There are a number of community colleges that offer students free tuition. Major universities like Harvard and Brown also provide tuition-free education for people whose household income falls below a certain threshold.

Why Do Some European Countries Offer Free Tuition?

There are many reasons why some European countries offer free tuition to their students. Enrollment at the college level tends to be lower than in other countries like the U.S. and Canada, where the cost of education is much higher. Another reason is that some countries are in need of skilled labor.

Keep in mind, though, that the cost of free higher education is borne by the taxpayer. Students are still responsible for certain fees, including administrative charges. But these costs tend to be fairly low.

Do All European Countries Offer Free Tuition?

Some, but not all, European countries offer free tuition for higher education. Most don’t charge tuition fees for their own citizens or those who are from the EU or EEA. Nominal fees may apply in certain instances. Certain countries have no or low fees for international students.

The Bottom Line

Many countries in Europe offer students low or no-cost education. This means that they do not have to pay tuition fees out of their own pocket. But that doesn’t mean it’s completely free. The cost of higher education is the responsibility of the taxpayer.

But the idea isn’t far off in the United States. Some colleges already offer free education for students, including Harvard and Brown. So if the idea of moving to Europe scares you, you may be able to study for free without a passport.

If you don’t “click it” and wear your seatbelt while driving, you can not only get a ticket, but you could impact your insurance settlement in an accident. If you or your passengers suffer injuries in the crash, an insurance company likely won’t deny your claim, but it may argue that failure to wear a seatbelt compounded the damages. Reduced compensation can leave you with hefty expenses that you must pay out of pocket.

Key Takeaways

• Insurance companies probably won’t deny a claim outright if you weren’t wearing a seatbelt when you had an accident. 
• The laws in your state dictate which insurance company you’ll file your claim with, but either way, an insurance company can lower your settlement if you weren’t wearing your seatbelt. 
• Insurers may argue that failing to buckle up worsened your injuries and that’s why they shouldn’t have to pay your full claim. 
• You can also get a ticket for not wearing a seatbelt, according to your local laws.

What Happens If You Have a Car Wreck While Not Wearing a Seatbelt?

The insurance consequences of having a traffic accident while not buckled up can depend on the type of policy you have and which driver caused the collision.

Who’s At Fault?

Let’s say you’re driving down the road at 40 miles per hour when another driver pulls out of a parking lot and collides with your car. In some states, the at-fault driver’s liability insurance should pay for your car repairs and medical costs.

However, the other motorist’s insurer might dispute the claim and pay an insufficient settlement or no settlement at all. If this happens, you can file a claim against your collision insurance—if you carry the coverage—to pay for your car repair costs. If you carry uninsured motorist or medical payments coverages, one or both may pay for your medical expenses.

But if you’re in an accident while not wearing a seatbelt, it can complicate any insurance claim. 

“If you’re in a car accident without a seatbelt, you risk severe injuries and possibly reduced compensation,” said attorney Angel Reyes, a managing partner at Angel Reyes and Associates in Dallas, Texas. “An at-fault driver’s insurance company will argue that not wearing a seatbelt contributed to your injuries, which could lower the amount you’re entitled to receive.” 

If you file an injury claim against your medical payments or uninsured motorist insurance coverages, your own insurance provider may make the same argument and reduce your settlement payment.

No-Fault States

Some states have no-fault laws, which require all automobile owners to carry personal injury protection (PIP) coverage. PIP covers medical and rehabilitation expenses and may include funeral, survivor loss, and work loss benefits. 

In no-fault states, each driver must file injury claims against their own PIP policies. For example, if you live in a no-fault state and cause an accident, you must file an injury claim with your insurer and the other driver must file a claim with theirs. Legislators have designed no-fault laws to reduce the number of lawsuits associated with automobile accidents.

However, if you have an accident while not wearing a seatbelt and file a claim against your PIP coverage, the insurance company may limit your settlement, claiming that your negligence contributed to your injuries.

PIP coverage does not pay for auto repairs or other types of property damage.

Note

Currently, 12 states and Puerto Rico require all drivers to carry PIP coverage, nine states and the District of Columbia require insurers to offer it as an option, and 30 states do not require PIP coverage.

Why Might the Insurance Company Pay Less on Your Claim?

When you’re involved in a traffic accident while not wearing a seatbelt, you run the risk of the insurance provider denying or limiting your claim based on a common law tort called “contributory negligence.” Insurers apply contributory negligence to assign levels of blame for an accident. For instance, if you hit a vehicle that pulls out in front of you, an insurance adjuster may determine that the other driver bears 60% of the blame for their actions, while you bear 40% of the blame because you were speeding.

Failing to wear a seatbelt can impact a contributory negligence ruling when an accident causes injuries. 

“Insurance companies may argue contributory negligence, claiming that you failed to protect yourself, worsening your injuries,” Reyes said. “For example, if a seatbelt could have minimized a head injury, they might use this against you to reduce compensation. With the right legal support, you can challenge these claims and focus on the other driver’s actions as the primary cause of your injuries.”

Failure to wear a seatbelt might also earn you a citation. Thirty-five states enforce primary seatbelt laws and 14 states enforce secondary seatbelt laws. Primary laws enable law enforcement officers to issue a traffic ticket at any time when a driver or passenger isn’t wearing a seatbelt. Secondary laws only allow an officer to issue a ticket when another citable traffic violation occurs, such as speeding or reckless driving.

According to the National Highway Traffic Safety Administration, fines for failing to wear a seatbelt can range from $25 to $200. Seventeen states impose fines of at least $30, including Texas, which levies a penalty of $200 for the first offense.

If a Passenger In Your Car Wasn’t Wearing a Seatbelt, Does That Affect Your Claim?

Although a passenger’s failure to wear a seatbelt can land you a costly traffic fine, it typically won’t impact an insurance claim. However, in certain cases, a passenger’s actions could affect a contributory negligence ruling. 

“A passenger not wearing a seatbelt might affect their claim but typically won’t impact yours unless their actions contributed to the crash,” Reyes said. “For example, if an unbuckled passenger distracted you, insurers could argue this played a role in the crash.”

What to Do If You Were Not Wearing a Seatbelt in an Accident

If you’re involved in a traffic accident, you should always:

• Call emergency services if anyone was injured. 
• Call the police if there are injuries or damage involved. While you may not be required to have a police report to file a claim in your state, the process can go more smoothly if you have one to back up your claim. 
• Exchange contact information, driver’s license numbers, and car registration details with the other driver.
• Get contact information from passengers and witnesses.
• Document the damages and crash scene using a camera or cell phone.
• Notify your insurance provider as soon as possible.
• In some states, you must also notify the Department of Motor Vehicles when injuries or vehicle damage exceeds a specified dollar amount.

If you were not wearing a seatbelt when the crash occurred, do not discuss the matter with the other driver or law enforcement. 

“Avoid mentioning not wearing a seatbelt until you’ve consulted an attorney, as it could be used against you,” Reyes said. “If you had a valid reason, such as a medical issue or emergency, your attorney can help protect your rights. Insurance companies may try to use seatbelt issues to minimize claims, but fault lies with the cause of the crash, not just whether you were buckled up. An experienced attorney can help ensure the focus stays on what caused the crash, protecting your right to fair compensation.”