Category Archives: Important Alerts & Scams

Beware of ATM Skimming and Shimming

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Recent incidents of sophisticated financial fraud include the uptick in unauthorized capture of consumer card and PIN information through skimming and newer shimming devices, placed inside ATMs or payment terminals. Keep reading to learn how to protect your finances from these fraudulent devices and signs to look out for when using an ATM or other payment terminal.

What are Skimming and Shimming?

Skimming occurs when illegal card readers are attached to payment terminals including at the store, on gas pumps, vending machines, parking meters or on ATMs. These card readers grab data off a credit or debit card’s magnetic stripe without your knowledge. Criminals can then sell the stolen data or use it to buy items online. You can learn more about skimming devices and what to look out for by watching our YouTube video.

Shimming has evolved more recently, as card microchips (EMV chips) started being used on newer cards to curb skimming efforts. Shimmers are thin pieces of metal inserted into an ATM or a machine at a point of payment, used to capture information in the microchip. They are small and almost impossible to detect when looking at a machine from the outside. Shimming devices allow fraudsters to steal data from your EMV chip cards in the same way that skimmers capture the data from a magnetic strip.

How Does Shimming Work?

When a shimming device is installed on an ATM or point-of-sale terminal, a crook can steal the data contained on your card’s chip. They can then use the data to create a fake card and make fraudulent purchases. You most likely won’t be aware that a shimming device is inside an ATM or payment terminal. The device is typically positioned inside the machine’s card reader slot, and is designed to be undetectable. Once the device has shimmed data from unsuspecting cardholders, the crook will pull the device out of the machine to retrieve the stolen data.

Protect Yourself

There are several ways you can protect yourself from shimming, including:

  • Use contactless payment methods such as Apple Pay, Google Pay and Samsung Pay, like we have available here for our First Financial members.
  • Use a financial institution owned ATM. ATMs owned by a bank or credit union are more secure than one you might find at a convenience store.
  • Choose a safe ATM. Skimming and shimming devices are more likely to be installed in poorly lit areas and in less public places, where even if there are cameras – they most likely won’t be able to pick anything up. Read more about ATM safety in our previous blog post.
  • Always check the card slot. Be aware of how easily your card fits into a card reader slot. If it’s difficult to slide your card in, be suspicious. This might mean there’s a shimming device inside the card reader.

What Should You Do if You’re a Skimming or Shimming Fraud Victim?

  • Contact your financial institution or card issuer. Once you know your card has been compromised, reach out to your card issuer to lock the card and issue you a new one right away.
  • Setup account & fraud alerts and monitor your account. You can request that the credit bureaus place an alert on your credit profile, which will ask any creditors to verify your identity before issuing any new credit in your name. You’ll also want to carefully review your bank and credit card statements and online account for any unusual activity.
  • File a report with the FTC. You can visit the FTC’s website to submit a report about suspected shimming.

At First Financial, your financial well-being is our top priority. Our tools and resources such as our Fraud & ID Theft Protection Guides can equip you with the knowledge necessary to protect yourself from scams. By staying informed and vigilant, you can safeguard your finances and enjoy peace of mind in an ever-evolving digital world.

For more personalized financial assistance with your First Financial accounts, call us at 732.312.1500 or visit a branch today.

Protecting Your Finances: Beware of Double Zero Scams

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In today’s digital age, financial scams come in many forms and staying vigilant is crucial to safeguarding your hard-earned money. One such scam gaining traction is the Double Zero Scam, a cunning scheme that preys on unsuspecting individuals’ goodwill and trust. Let’s delve into exactly what this scam entails and how to protect yourself.

What is a Double Zero Scam?

Imagine receiving a call from someone claiming to represent a reputable company that you may have an account with or have purchased a product or service from in the past. The caller informs you that a $150 refund was issued to your bank account for unused services. However, due to a bank error – an additional two zeros were added to your account, making the refund amount $15,000. The caller is in distress and pleads for you to wire back the excess amount or to go to the bank and withdraw it in cash, to rectify the error so that they don’t lose their job.

How Does it Work?

The scammer relies on psychological manipulation, leveraging urgency and fear to coerce victims into compliance. By creating a sense of urgency and portraying themselves as reputable entities facing dire consequences, they aim to bypass your logical reasoning and exploit your desire to help.

Protect Yourself from Double Zero Scams

  • Verify the Caller: Always verify the identity of the caller, especially if they claim to represent a company or organization. Hang up and contact the company directly using a trusted phone number to confirm the legitimacy of the call.
  • Be Skeptical of Unsolicited Requests: Exercise caution when presented with unexpected refund offers or requests for financial transactions. Legitimate companies typically do not request immediate action or ask for sensitive information over the phone – much less a payment via a wire transfer, gift card, person-to-person payment (i.e. Venmo or Zelle), in cash, or with cryptocurrency.
  • Trust Your Instincts: If something feels off or too good to be true, trust your instincts. Scammers often rely on creating a sense of urgency to pressure victims into making hasty decisions. Take a moment and call your financial institution for a second opinion before making any financial transactions. A trusted company representative will not have an issue with further verification.
  • Educate Yourself: Stay informed about common scams and fraudulent tactics gaining traction in today’s digital landscape.

At First Financial, your financial well-being is our top priority. Our tools and resources such as our Fraud & ID Theft Protection Guide can equip you with the knowledge necessary to protect yourself from scams. By staying informed and vigilant, you can safeguard your finances and enjoy peace of mind in an ever-evolving digital world.

For more personalized financial assistance with your First Financial accounts, call us at 732.312.1500 or visit a branch today. Don’t miss out on more financial tips and advice, be sure to subscribe to our First Scoop blog.

Identify and Defend Against Military Scams

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Being away from home on a deployment is a challenging time for military members and their families, and some will try to take advantage of this situation – making things even more stressful. A military scam begins when a scammer gains access to deployment, relocation, or public information. Then they use this data to try to convince their targets – armed services members or their loved ones, to send money right away.

Fake charities, phony debt collectors and government agency imposters often target members of our armed forces and their families. Here’s what you need to know about military scams and how you can help protect yourself and your loved ones.

Common Military Scams and Tactics

A scammer may call, email, or text an urgent request for money via a wire transfer or digital payment platform. These schemes can take many forms, including:

• Fake debt collectors with urgent notices.

• Donation requests from fraudulent charity organizations that claim to help members of the military.

• Fees for grant applications from government agency imposters.

• A person pretending to be or representing a deployed service member in desperate need of money.

In reality, the criminal is trying to create a sense of urgency or tug on your heartstrings to get you to respond with emotion.

Ways to Avoid These Scams

Any time you receive a request for money or personal information, take a moment to evaluate the situation and make sure there are no red flags. This includes doing research on any organization or company that you’re not familiar with. If something seems off, dig in and ask questions. A legitimate debt collector or charity will take the time to answer any questions and provide you with documentation.

Also consider the payment method they are asking for. Wire transfers and digital payment platforms often can’t be reversed once the payment has been sent, so if the requestor is demanding these forms of payment – it’s more than likely a red flag.

If a loved one sends a text message from a number you don’t know, and they say they need money quickly, ask them a personal question that only they would be able to answer. This is an effective way to verify their identity and protect against imposters. You may also want to check in with your family and friends to see if others have received similar communication. When it comes to your finances, always slow down and ask yourself questions.

View this short video to learn more about military scams.

At First Financial, our goal is to help protect our members from scams and identity theft. If you have any concerns or questions about any of your First Financial accounts, please call member services at 732.312.1500 or visit one of our branches.

To learn more about scams and ways to protect yourself, visit zellepay.com/pay-it-safe.

Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

Easy Money or Money Mule?

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A money mule acts as a layer of distance between a scammer and their victims by handling stolen funds on behalf of someone else, either knowingly or unknowingly. Money mules make a scam harder to trace and the money harder to find.

Beware of offers that promise quick cash or a commission in exchange for receiving money and then sending it to someone else. This may take the form of a fake job opportunity, investment scheme, or prize award.

As an example, the scammer may approach an unsuspecting victim online or by phone with the promise of a financial windfall. In some cases, they may send the person a lump sum, ask them to transfer a portion of it to another account, and keep the rest for themselves. It sounds like easy money, but acting as a money mule is illegal – even if the person is unaware they are committing a crime.

Another tactic is for a scammer to say that they’re unable to receive funds through a particular payment method and need someone else to help by accepting a payment into their bank account. In reality, they are scamming someone out of funds and using another person as a middleman to help cover their tracks. After the money transfers are completed, the money mule could be held criminally responsible for their participation – whether they knew it was a scam or not.

Protecting Yourself from Money Mule Scams

It’s important to only send and receive money with those you know and trust. If a stranger requests that you handle money for them, stop communicating with them immediately. If you find that an unexpected deposit has been made in your account and someone you don’t know calls and claims it belongs to them, hang up and contact your financial institution.

Follow These Tips to Avoid Becoming a Money Mule

  • Don’t agree to send or receive money or packages for people you don’t know or haven’t met in person.
  • Do not take a job that promises easy money – especially if it involves sending or receiving money or packages.
  • It’s not a good idea to open a bank account or cryptocurrency account at someone else’s direction.
  • Refuse to send money to an online love interest, even if they send you money first.
  • You should never pay to collect a “prize” or send someone money out of your “winnings.”

View this short video to learn more about money mule scams.

At First Financial, our goal is to help protect our members from scams and identity theft. If you have any concerns or questions about any of your First Financial accounts, please call member services at 732.312.1500 or visit one of our branches.

To learn more about scams and ways to protect yourself, visit zellepay.com/pay-it-safe.

Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

How to Determine if a Donation Appeal is for Real or a Scam

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Charitable donations are a great way to make an impact on the causes you care about. But when tragedy strikes, scammers may prey on the generosity of those trying to support the victims. Scammers often request donations on social media or crowdfunding websites – or may contact you by phone, text, or email.

Common Characteristics

Charity scams occur when a scammer tricks someone into sending them money for what they believe is a worthy cause. Be on the lookout for these common characteristics of a scam.

  • Emotional appeals. Scammers may try to tug at your heartstrings by highlighting victims of natural disasters, such as wildfires or hurricanes – with an urgent appeal for donations that purportedly go toward food or shelter. Scammers commonly try to get people to act on emotion rather than logic.
  • Unusual language and names. Pay close attention to the details in any request you receive – especially poor grammar and spelling errors. Scammers may try to slightly alter a real charity’s name or website by changing a single letter and hoping you won’t notice the difference.
  • Specific payment method. Be wary if a “charity” requires you to donate through a digital payment platform or other non-refundable payment method.

Even if a charity seems real, it’s important to research the organization and look for reviews before you decide to donate. You can also do an online search for the name of the charity with the word “scam” or “complaints” to see if others have reported any issues. If you’re unable to verify a charity’s authenticity, you may want to donate elsewhere. When it comes to sending money, always remember to slow down and ask yourself questions. If something doesn’t feel right, trust your instincts.

View this short video to learn more about charity scams.

 

At First Financial, our goal is to help protect our members from scams and identity theft. If you have any concerns or questions about any of your First Financial accounts, please call member services at 732.312.1500 or visit one of our branches.

To learn more about scams and ways to protect yourself, visit zellepay.com/pay-it-safe.

Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

 

 

Don’t Fall Victim to AI Voice Cloning Phone Scams

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At First Financial, your safety has always been our utmost priority. We believe in not just safeguarding your financial assets, but also in ensuring you are informed and protected against the evolving threats in our digital age. One such alarming development that we wish to bring to your attention is the rise in AI (artificial intelligence) voice cloning scams.

Understanding AI Voice Cloning Scams

In a typical scenario, scammers will utilize artificial intelligence and voice cloning technology to create a near perfect imitation of a person’s voice. Armed with this technology, fraudsters can impersonate loved ones – demanding emergency funds or posing as genuine businesses and government agencies to deceive people into sharing their personal and financial information.

How It Works

To clone a voice, scammers only really need a short audio clip of the intended person. Surprisingly, these clips can easily be sourced from public platforms like social media. This evolution of scams has been observed by significant entities such as the Federal Trade Commission, which has raised alerts about this alarming trend.

To put things in perspective, 2022 witnessed a significant surge in phishing attacks attributed to the availability of AI. This new age scam is an offshoot of the well-known “grandparent scam,” which institutions like AARP have warned their members about.

Spotting the Scam

Although the technology behind these scams is advanced, there are some common indicators:

  • Requests for urgent payment – especially via wire transfers, cryptocurrency, social media, or gift cards.
  • AI generated texts that have repetitive words, short sentences, lack idioms or contractions, or make implausible statements.
  • Suspicious communication from “genuine” organizations or from someone you know. Always independently verify the source by calling them on your own using the publicly listed business phone number or the phone number saved in your contacts, before taking action.

A Real Life Experience

Jennifer DeStefano shared her harrowing encounter with News 12 New Jersey to raise public awareness. She received a call demanding a $1 million ransom, with the caller threatening that they had kidnapped her daughter. The chilling part? The voice of her sobbing daughter in the background sounded undeniably real. The relief came when she discovered her daughter was safe with her husband. The traumatic voice she’d heard was an AI generated clone.

How to Protect Yourself

  • Skepticism is Key: Be wary of any unusual payment requests via gift cards, wires, or cryptocurrency. If it sounds too strange, it likely is.
  • Analyze the Language: Pay attention to any odd phrasing, repetitive words, or short, robotic sentences in text communication.
  • Keep Plans Private: Be mindful of the personal details and plans you share on social media, as well as if your profile is public or if you have any public videos online with your or a loved one’s voice recorded.
  • Don’t Trust Caller ID Blindly: Scammers have the means to mask their numbers, as well as make them look like a legitimate organization’s phone number.
  • Report Suspicious Activity: Always report any potential scam to local authorities and the FTC.

At First Financial, we pledge to continue our relentless pursuit of safeguarding your well-being in all facets of your financial journey. Let’s work together to protect our community, financial assets, and personal information from falling into the wrong hands.

If you ever have any concerns or questions about any of your First Financial accounts, please call member services at 732.312.1500 or visit one of our branches. Check out our First Scoop blog to stay up to date on the latest scams.