More Y2K glitches that could bug you.

Here are a few ways to protect yourself from the millennium sting--even if you're not a techie 

HAPPY NEW YEAR! YOU PICK UP THE PHONE TO wish your mom well when you discover the phone line is dead. Then you notice your kitchen light and TV seem to be flickering; perhaps there's some kind of power trouble? No problem. You'll just step out for a bit of fresh air, but you have to take the elevator first, and that isn't working either. Now you start to get a little edgy. To make matters worse, your neighbor is grumbling because she can't get into her apartment. It seems her computer-operated security system has started playing tricks on her. Have you been dropped into The Twilight Zone? Of course not. These are just a few of the year 2000 pests that could infest your life.

By now you're probably familiar with the phrase "Y2K bug." It's the term used to describe the mayhem that could arise after the clock strikes midnight on December 31. Typically, computers have been programmed to recognize the last two digits of any given year: 1999 is recorded as 99, for example. Computer systems that haven't been properly debugged could read the year 2000 as 1900--setting digital calendars back 100 years.

But this issue just concerns computer professionals, right? Wrong. Even though the beginning of the new year is expected to be pretty anticlimactic, advises Bruce Webster, author of The Y2K Survival Guide (Prentice Hall, $19.99) and co-founder/co-chair of the Washington, D.C., Year 2000 Group, experts do identify a few Y2K glitches that could bug you. In fact, any computer-operated system or any mechanism that requires the accuracy of the year for proper operation could be affected. And while you shouldn't buy into the panic perpetuated by extremists and scam artists, you should take some measures to protect yourself from the millennium sting.

Since home is where your heart is and may be the center of much media hype, we'll start there.

Y2K BUGS AROUND THE HOME

Good news! You'll still be able to make your morning coffee and pop in your favorite video on January 1. According to Ann Seybolt, spokeswoman for the Consumer Electronics Association, even those electronic devices that have a date function--coffeemakers, microwaves, dock radios, televisions and fax machines, for example--won't need the correct date to operate properly because they depend on a clock as opposed to a calendar. VCRs and camcorders that are purchased after 1987 should be problem-free. If your systems are older than that, you may need to buy new ones anyway.

Although Webster doesn't predict massive power outages, he says there may be some disruptions because of utility companies that are behind on their Y2K efforts. So, keep working flashlights, candles and extra batteries on hand in case of any power trouble. Also, make sure your smoke alarms and carbon monoxide detectors are in working condition and have battery-operated backups.

As far as your health is concerned, you should have an ample supply of prescription and nonprescription drugs. If possible, get your doctor to write you up an extra prescription if your condition is life-threatening. Also, check with your doctor, hospital or manufacturer to see if any medical equipment you rely on is Y2K compliant (for details see www.fda.gov). Although most are expected to operate normally, you should ensure that the readings they generate are accurate. In addition, keep enough nonperishable food items and drinking water on hand to tide you and your family over for about a week. This will help you avoid the crowd of shoppers that may decide to do some last-minute shopping in response to Y2K scares. If you still decide to visit the stores, be prepared for some interference on your supermarket run.

FOOD FOR THOUGHT

Industry experts are more concerned with how consumers will respond to the Y2K scare than with how in-house systems are going to react. "Just like in a hurricane situation, people may start storming the shelves to get as much food as they can," suggests Andy Erickson, editor of Supermarket Grocery & Convenience in Tampa, Florida. The annual directory tracks company information for all U.S. and Canadian grocery and convenience stores. If everyone waits until December 28 to begin stocking up, it could look like the day before Thanksgiving squared, advises Cathy Hotka, vice president of information technology for the National Retail Federation in Washington, D.C. "If this becomes the case, people can expect long lines," she says. To avoid being caught up in a year-end rush, you can add a few extra canned goods to your weekly shopping list before the end of the year. Although food suppliers are looking at hoarding as a potential problem, no one really knows what to expect. "Some grocery stores will put extra products on the shelves. Others will just take a wait-and-see approach," Erickson adds.

Then there is the matter of interdependence. If the telecommunications or electric companies experience unexpected complications, that will affect everyone. The same is true for retailers and their suppliers. "Both the supermarkets and their suppliers have to be Y2K compliant in order for everything to work properly," comments Len Lewis, editor in chief of Progressive Grocer, a national monthly business publication, based in New York City, that covers the food industry. "If a supplier has fixed his computer equipment and the retailer then the work is for nothing. A lot of testing has been done on the retail and manufacturing side to make sure everyone is in compliance, so as few glitches as possible take place."

Supermarket scanners and cash registers aren't expected to go haywire. According to the Food Marketing Institute's In-Store Systems Study 1998, an overwhelming majority of supermarkets reported that scanners (87%) and scales (83%) Were already Y2K compliant. Larger companies (respondents with 11 or more stores) were more likely to report compliance with front-end operations--payment terminals, scanners or employee schedule systems--than smaller firms. A little fewer than half of respondents (45%) are in the process of developing contingency plans. "Even if cash registers or scanners go down, pricing information can be entered manually," notes Lewis. He says supermarkets will be the real victims if Y2K plans don't pan out. They rely on an automated system for ordering products. Scanning problems could adversely affect this vital function. "But that problem should be short term, if it happens at all," he contends.

STINGERS TO YOUR POCKETBOOK

"We're not expecting any widescale problems, since banks have been working on this issue for about three years," notes David Barr, spokesperson for the FDIC. "But there may be some minor inconveniences." For example, ATM machines may be down, so you might expect to conduct business with the bank's teller. As a safety precaution, keep cash on hand to tide you over for about a week. More important, Bart recommends you "keep documentation of your financial records in case anything goes wrong." Financial institutions are especially vulnerable to Y2K malfunctions because transactions are date-sensitive. Inaccuracies could directly impact interest calculations, recordings of loan payments, automated teller machine transactions and stock updates. According to an issue of the FDIC's Consumer News, consumers should keep track of all banking transactions especially those conducted in the last six months of 1999 up through the first several months of 2000. Your records should include ATM withdrawals, deposits, canceled checks, tax payments, loan statements (including credit card, mortgage, auto, etc.) and investments. If you find a discrepancy between your records and your financial statements, report it to your institution immediately. Also, ask your lender for a printout of your mortgage or other loan outlining how much of payments were made toward the principal and interest. And request copies of your "Personal Earnings and Benefit Statement" from the Social Security Administration (800-772-1213 or www.ssa.gov) so you can make comparisons in 1999 and in Y2K.

In addition, determine the extent of your FDIC coverage. If you or your family's account balances are $100,000 or less in any one institution, your money is completely covered by FDIC insurance. For balances above $100,000, you could still be protected, but call the FDIC's Division of Compliance and Consumer Affairs (800-934-3342) or visit the Electronic Deposit Insurance Estimator (EDIE) at the FDIC's Website (www.fdie.gov) for clarification.

"Mutual funds, stocks and bonds are not covered by the FDIC," Barr advises. He suggests the same precautions taken with FDIC institutions also be taken with other financial companies. "Keep your statements and transaction receipts," he advises. "If you have money in a bank located in a foreign country, it's not insured by the FDIC." In that case, talk to your overseas financial institution directly to get a firsthand account of the firm's Y2K readiness and its contingency plans for system failures. As with domestic financial institutions, if you're not convinced that a foreign company is adequately prepared for the new millennium, consider taking your money elsewhere. For those of you who prefer plastic, here are a few suggestions to insulate your credit cards.

ZAP YOUR CREDIT CARD TRANSACTIONS

Purchases made on credit are subject to the same Y2K guidelines as other financial transactions. According to the Federal Trade Commission, you should keep credit card receipts for anything you buy around January 1, 2000. When you receive statements, verify your purchases and report any discrepancies to the card issuer. Also, check your credit report in both 1999 and 2000, reviewing it for errors or discrepancies. If possible, Webster suggests paying off credit cards or, at the very least, reducing the balance as much as possible. "[Credit cards] are a form of financial storage, so tighten your belt for the next several months. Avoid new debt and pay off existing debt."

COULD THE Y2K BUG TRIP YOU UP?

"There have been a lot of gloom stories about airplanes falling out of the sky because of Y2K, but the people making those predictions don't understand how air traffic control works or the progress that we've made," explains Paul Takemoto, spokesperson for the Federal Aviation Administration in Washington, D.C. "Air traffic control computers are designed for very specific uses. They rely on the time of day and day of the week. The year is largely irrelevant for frontline systems." As far as the airplanes themselves are concerned, Thomas Browne, the executive director of the Air

Transport Association's Aviation Millennium Project, identified two main devices--the flight management computer and the inertial navigation system--as having Y2K problems, but the manufacturer of these mechanisms found these errors two years ago. "We know which planes have these devices, so the airlines have either fixed or replaced them," Browne insists. The FAA administrator, Jane Garvey, is so confident of the airline industry that she announced her plans to fly from Washington, D.C., to Dallas and then on to San Francisco on New Year's Eve. Says Browne, "Airplanes are going to fly, tickets are on sale, so don't worry about it. It's going to be like any other day."

Your car should not be affected by any Y2K glitches. According to the Web page of the President's Council on Year 2000 Conversion (www.y2k.gov), General Motors reports that most of the computers in its cars and trucks do not have date-related functions and pose no year 2000-related problems. Although other car manufacturers are less vocal about Y2K issues, the government believes the same situation applies to other automakers as well.

Fuel for your vehicle is expected to be widely available and the machines that pump it in working order. Gas pumps do not use timers or dates anywhere in their software, according to Frank Kendall, marketing manager for Gilbarco, the world's leading supplier of fuel-related and point-of-sale equipment for petroleum. The site management device is a tool that tracks the shift, day and week. The point-of-sale device starts the pump and processes credit or debit card purchases. Says Kendall, "We have communicated with all the people who purchased point-of-sale devices to encourage them to use the latest version of our software, which is Y2K compliant." The real issue according to Webster, is not whether you'll be able to "fill 'er up" but how much more it's going to cost in the new year (see sidebar).

TAKE A SWAT AT Y2K SCAM ARTISTS

No doubt some unscrupulous folks will use the pandemonium generated by Y2K fears as an opportunity to exploit unsuspecting consumers. Products are popping up on TV commercials and in emails claiming to provide solutions to year 2000 issues or prevent Y2K problems. Closely examine these sales pitches, which may have been devised to sell you unnecessary, overpriced services or been concocted to get your credit card information or bank account number. To protect yourself from these fradulent Y2K offers and other scams, follow these guidelines:

* Don't give your personal information out over the telephone, unless you're familiar with the business. Keep your credit card, bank account and Social Security numbers under wraps. Scam artists could use this information to commit fraud.

* Review your credit card statements and report all unauthorized charges. If you don't recall authorizing a particular charge on your account, dispute it with your credit card company.

* Look for discrepancies on your chocking or savings account statements. If you find an unauthorized debit, report it immediately to your financial institution.

* Request a report on Y2K readiness from any public company that you own shares in.

* Ask questions. Contact the firms you're doing business with and find out whether they are Y2K compliant.

* Seek legal recourse. If the Y2K bug causes major havoc in your life, you can sue the offender. But be aware that the government is trying to head off lawsuits well before they emerge. Already Congress is proposing legislation to limit the amount of money that can be claimed in damage awards. It's also pushing for quick, painless settlements.

* Educate yourself. Learn all you can about the Y2K issue and what you can do to protect yourself. Also, pay special attention to the mailings you receive from banks and other firms informing you about their year 2000 plans. They often contain helpful suggestions for consumers.

* Do your research. If a company guarantees to fix a Y2K glitch, check with an independent expert or the manufacturer of the product that supposedly requires fixing before you hand over any cash to get it up to snuff.

millennium predictions

WHAT OCCURS ON JANUARY 1, 2000, could be the least of our worries, advises Bruce Webster, co-founder/co-chair of the Washington, D.C., Year 2000 Group. He recommends consumers look at the possible long-term effects of the millennium bug, since the full impact could come days, weeks or months after January 1. Depending upon how severe any problems are, they could result in a recession. He lists five factors that could contribute to a contraction of the economy.

* Increases in nil prices. The U.S. receives 50% of its oil from foreign countries. Unfortunately, most of them are behind in their Y2K upgrades. A decrease in oil production would tighten the supply and could result in higher oil prices. Such an event would have a ripple effect throughout the economy, since so many products and services rely on oil as a resource.

* More instability in international markets. The global economy has been weak for the past two years. It began with the currency devaluation in Thailand and quickly spread through Asia and later impacted other parts of the world. The economies of Japan, Russia, Africa and South America are still struggling. Some of these areas are also behind in dealing with Y2K issues. Any problems that occur in the new millennium will only exacerbate existing challenges.

* Decreases in demand for purchases. Since many firms are acquiring excess materials as a way to combat projected Y2K problems, there may be reduced demand for supplies until later in the year. That in itself could cause a "classic, economic stockpiling recession."

* Decreases in earnings. Most firms depend on outside vendors or suppliers for essential goods, and this could be problematic next year. According to Webster, companies that are Y2K compliant could still experience production disruptions if thrusts or vendors fall short. This could impact profit margins.

* Outdated technology. Many corporations, both small and large, will not make the Y2K deadline and their software programs may become outdated come January 1. Even a modest number of Y2K problems may be enough to push some of these firms over the edge.

--Terri Guess