Category Archives: Important Alerts & Scams

How to Detect and Prevent Power of Attorney Fraud

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Along with the potential benefits associated with establishing a power of attorney, come potential risks to consider. Our first article in this series discussed what a power of attorney (POA) is – a legal document that ensures your wishes (typically having to do with your assets), are carried out in a manner that you as the principal approve of. It gives a trusted person (often referred to as an agent), the legal authority to handle these wishes. Anyone you trust – such as a family member or friend, can serve in this role for you.

Even when designating someone you trust as your POA, the risk of fraud and abuse can still exist. This person may perform actions that the POA document does not authorize, manipulate you or your assets for their own personal gain, or not act in your best interest.1

There are several ways in which POA fraud and abuse can occur, so it is best to become familiar with some of them so you can recognize if it may be happening to you or someone you care about.

Financial Exploitation: In this instance, the agent may use the principal’s money for their own gain instead of the principal’s needs – often without informing the principal. They may withdraw funds from the principal’s accounts for their own use or conceal the reason for withdrawing the funds. They may justify an expenditure by saying it was for the principal’s benefit, but then use the funds for something that does not align with the principal’s needs or wishes.2

Unauthorized Gifting: This occurrence happens when the agent authorizes gifts to themselves or other family members without the authority to do so, without the principal’s knowledge, or without considering if it is in the principal’s best interest. Gifting is unauthorized if the POA does not explicitly authorize gifting, which can include recipients and the dollar amount(s) that may be gifted.3 If gifting is authorized – the agent should consider the principal’s entire financial situation, upcoming financial obligations, and if it is consistent with their personal character. 3

Neglect of Duties: Neglect occurs when the agent does not provide care as required by the POA – such as meeting medical needs or providing adequate living conditions. 2 This can also take the form of neglecting financial responsibilities, such as not paying bills.

What are common red flags of POA fraud?

  • Bills are unpaid, even though there should be sufficient funds to pay them. This can suggest that the agent is using the funds for unauthorized purposes or neglecting to manage the principal’s financial obligations.
  • Sudden, unexplained changes to legal documents. Especially if the changes benefit the agent, or if the principal is unaware of or didn’t consent to the changes.2
  • Information is being withheld from the principal and principal’s loved ones. The agent may avoid answering questions or giving information about the principal’s financial situation, including their bank accounts or investments.4
  • The principal becomes isolated from loved ones. The agent may isolate the principal from those who care about them so that it is harder to detect if something is not right. Isolating the principal also allows the agent to exercise more control, without the potential for others to intervene. 2

How can you protect yourself from POA fraud and abuse?

  • Choose your agent wisely. Choosing an agent that you trust, and whose values align with your own, to ensure they are capable of following your wishes and putting your needs first.2
  • Specify the scope of the POA. Clearly defining tasks, responsibilities, and decisions to be made on your behalf can minimize the potential for abuse.2 This aligns the power that is legally granted with your intentions, and only gives the agent the authority needed to carry out your wishes.
  • Clearly communicate with your agent. Continually check in with your agent to confirm your wishes and preferences. Promptly make any changes you desire to the POA so that the agent remains aligned with your wishes.
  • Inform trusted individuals about your POA. By informing trusted individuals such as family, friends, and business partners about your POA – they can be on the lookout for any red flags that signal fraud or abuse.
  • If possible, remain involved in decision-making. Review the agent’s activity, such as any financial transactions they are conducting or any medical decisions they are making on your behalf. This encourages transparency between you and the agent and keeps you involved in your affairs, to the degree you wish to be. 2

To report POA fraud, contact Adult Protective Services (APS) in your state or to the National Center on Elder Abuse (NCEA). Any identity theft incidents related to fraud should be reported to the principal’s financial institution, the local police, and to the Federal Trade Commission at identitytheft.gov.

If you are thinking about your financial future and retirement, as well as estate planning – the First Financial Investment & Retirement Center will be hosting an exclusive no-cost virtual seminar on the Transitions to Retirement with a Focus on Estate Planning, on Wednesday, October 8th at 6pm.

(697533-1 and 622155)

You can also register for this session by contacting Maureen McGreevy, LPL Financial Advisor at 732.312.1534 or emailing maureen.mcgreevy@lplfinancial.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. For individual estate planning advice, consult with an estate attorney.

  1. John Lewandowski of Heban Murphree Lewandowski Law, March 12, 2022
    1. What Is Considered Power of Attorney Abuse? | HML Law
  2. Edward Gates for American Judicial System, October 10, 2023
    1. How Do You Prove Power Of Attorney Abuse: Steps and Strategies for Justice
  3. National Research Legal Group, Inc., June 19, 2019
    1. ESTATES: Gifts Under a Power of Attorney
  4. Mark R. Manceri, P.A., June 9, 2023
    1. 6 Warning Signs That Power Of Attorney May Be Abused

Beware of Crowdfunding Scams: What You Should Know

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Crowdfunding platforms like GoFundMe, make it easy to contribute to worthy causes – but that ease can also open the door to scams. During times of disasters and emergency, there are spikes in fraudulent campaigns. In recent years, millions of dollars have been lost to fake charities and crowdfunding scams. These schemes prey on generosity during times of crisis, making it especially important to verify before giving. At First Financial, we believe in empowering smart giving. Here’s how to protect yourself and your finances before you click “donate.”

Red Flags – Spotting a Fraudulent Crowdfunding Campaign

  • Vague or inconsistent campaign details: Legitimate campaigns include clear names, addresses, and purpose. Scams often feature contradicting or minimal information.
  • No digital footprint: If you can’t find anything about the organizer or beneficiary online, proceed cautiously. Fake campaigns often lack verifiable details.
  • Organizer’s social presence is minimal or new: Profiles with few followers or that were recently created can be red flags, so proceed with caution.
  • Poor communication: Scammers will often ignore or give vague answers to your questions.
  • Pressure to act immediately: Messages demanding quick donations, especially citing urgent causes – are often phishing or scam attempts.

Vet Before You Donate

  1. Investigate the organizer: Search their name along with words like “scam,” “complaint,” or “review.”
  2. Understand the cause fully: Know exactly what the funds are for and whether there’s a refund policy if the project fails.
  3. Ask for proof: Request evidence that the beneficiary or project exists and that funds will be used as claimed.
  4. Consider giving directly: Donating straight to established charities may be safer and more transparent.
  5. Stay local: Support causes involving people you know personally or local community efforts that you can verify.
  6. Check platform protections: Many platforms offer refund guarantees if fraud is confirmed, and they monitor campaigns for suspicious activity.

What to Do if You Suspect a Scam

If you suspect a scam, report it immediately to the crowdfunding platform, then warn others by using comments or social media posts to spread the word and protect your community. You should also request a refund, as many platforms do have processes in place to return your money should a campaign prove to be fraudulent.

Additionally, crowdfunding scams should be reported to the FTC and your state’s attorney general.

Safe, Thoughtful Giving

Crowdfunding campaigns can support incredible causes, but that impact only holds when the campaign is authentic. Before donating – always pause, investigate, and verify. To stay up to date on the latest scams, subscribe to our First Scoop Blog.

Avoid Scammers While You Job Hunt: Red Flags to Watch Out For

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In today’s job market – remote and freelance roles are more common than ever, but so are the scams that may come with them. From fake “work-from-home” gigs, to bogus job placement services – scammers are constantly evolving their tricks to exploit hopeful job seekers.

Red Flags of a Job Scam

There are some red flags to spot before you get reeled in, and ways to protect yourself and your finances while you hunt for your next opportunity.

  • You’re asked to pay upfront. Legitimate employers will never ask you to pay for training, supplies, or job placement. Scammers may call it a “processing fee,” but it’s a sure sign of fraud.
  • The offer comes out of nowhere. If you didn’t apply for a job, and suddenly get an “offer” via text, email, or social media – be skeptical, especially if it seems too good to be true.
  • They want your personal info immediately. Requests for your Social Security Number, bank account details for direct deposit, or ID early in the process are major red flags.
  • The job description is vague or inconsistent. Watch for generic descriptions or ones that are copied from other listings. Scammers often can’t describe the role or company clearly.
  • You’re offered big pay for little work. If it sounds like easy money, it’s probably a scam.

Common Job Scams

Here are some trending job scams targeting job seekers, especially those looking for remote or flexible roles:

1. Work-From-Home Scams

You’re told you can “set your own hours” doing simple tasks from your computer. But after you accept, you’re asked to pay for software or a training kit. The scammer then takes your money and disappears.

2. Virtual Personal Assistant Gigs

These often start with a text or email claiming the sender found your resume or profile online. You’re “hired” quickly and sent a check to buy office supplies – but it’s fake, and you’ll be on the hook with your financial institution for any money you spend.

3. Mystery Shopper Scams

You’re paid to “test” a service or retail store. The scammer sends you a check to deposit, asks you to buy gift cards, and then send them the gift card codes. When the check bounces, you’ll be left covering the cost.

4. Job Placement Services

Phony recruiters or companies will promise to place you in a job for a fee. Once you pay, the contact goes cold or gives you access to a database of outdated listings.

Protect Yourself While You Job Hunt

  • Research the company. Google the company name with the words “scam,” “review,” or “complaint.” Check if they have a legitimate website, social media presence, and professional email addresses. Recruiters or legitimate Human Resources departments will email you from a corporate email account, not from a personal email address such as gmail.com or yahoo.com.
  • Never pay to get hired. If you’re being asked to send money for any job, stop and walk away immediately.
  • Guard your personal info. Share sensitive details only after confirming the job and company are real, going through a formal interview process with Human Resources, and accepting the position. Real employers won’t ask for this information before they’ve interviewed and hired you.
  • Use trusted job sites. Stick to reputable job platforms like LinkedIn, Indeed, or company website career pages. Be wary of job ads on social media or unfamiliar websites.

Job hunting can be stressful enough, so don’t let a scam make it worse. Stay alert, trust your instincts, and remember – if it feels off, it probably is. For more tips on avoiding fraud and keeping your finances safe, subscribe to our First Scoop Blog or contact us today.

Protect Yourself from Social Security Scams

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With millions of Americans receiving Social Security benefits – whether it’s retirement, disability, or others – fraudsters have found impersonating the Social Security Administration (SSA) to be a lucrative scam. With the countless methods of communication in today’s day and age, it can be challenging to distinguish between legitimate messages and those from scammers. Whether you or someone you know currently receives Social Security benefits, or will one day soon – understanding the different Social Security scams and how to spot them is a powerful tool in protecting yourself and those you love.

What are Social Security Scams?

Social Security scams involve a fraudster impersonating Social Security employees to obtain personal or financial information. They will say there is a problem with your benefits and pressure you to take immediate action to resolve it, whether that is handing over your Social Security Number or providing payment in a specific form – such as gift cards or cryptocurrency.

It’s important to note that anyone who contacts you first and asks for a form of payment to resolve a personal or financial issue, especially when they are requesting gift cards or crypto (methods of payment that are nearly impossible to trace) – is always a scam.

What Does a Social Security Scam Look Like?

Scammers frequently change their tactics and messages to make themselves harder to spot, and easier to obtain the information they need to defraud you. Scammers impersonating Social Security personnel may attempt to contact you via phone, email, text message, or social media direct messages. The SSA is known to contact the public only by telephone call or direct postal mail, and will never text you or send you a message on social media. Below are common Social Security scams, based on mode of delivery.

  1. Phone Calls: Scam phone calls will involve a robotic voice, pretending to be from the SSA and will demand personal or financial information. The nature of these phone calls is often threatening, with pressure to take immediate action to resolve the issue or provide personal information. The SSA would never take a threatening tone with recipients of phone calls and if you receive this type of call, it’s a telltale sign that the call is fraudulent. Additionally, the scammer will often demand secrecy and ask that you don’t share the details of the call with those you trust. Lastly, if your caller ID shows the Social Security hotline number – that does not necessarily mean you are on the phone with a SSA employee. Scammers can spoof their phone number to make it look like the Social Security Administration on your caller ID.
  2. Emails: Scammers have been known to send emails with attachments that resemble official letters from the SSA or contain links to fake websites that looks like the Social Security Administration website. Within such an email – you will be prompted to enter your sensitive information into an online form that does not belong to the SSA, or click on a link that will download malware or a virus onto your device – which the scammer will use to steal your sensitive information.
  3. Text Messages: Social Security scam texts will often say there is a problem with your Social Security Number and will provide a call back number to resolve the issue. When you return the call, you will be on the phone with a scammer who will try to take your personal or financial information. There are very few instances in which you would receive a text from the SSA, which can be found here. In those cases, the SSA will never ask that you return a call to an unknown number – especially one that is not associated with the Social Security Administration.
  4. Social Media Direct Messages: Fraudsters have been known to create fake social media accounts pretending to be the SSA. They will then use those accounts to send direct messages asking for your personal or financial information. Once again, the SSA will never contact you through social media. These fake accounts will often have few followers, incorrect punctuation or spelling, and link to pages, forms, or documents that are not associated with the SSA. Visit ssa.gov/socialmedia for a directory of the social media channels the SSA uses for public information.

Stay Vigilant to Social Security Scams

The SSA will never demand that you share your personal information, such as your Social Security Number or bank account details, by contacting you out of the blue or in ways that are not secure. Additionally, Social Security employees will never demand payment, threaten arrest or legal action, or freeze your bank account or other assets if you refuse to divulge your personal information.

If you have received a suspicious communication or are worried you have fallen victim to a Social Security scam, you can report it to the Office of the Inspector General at oig.ssa.gov/report. It can also be reported to the Federal Trade Commission (FTC) at reportfraud.ftc.gov.

First Financial wants to help you safeguard your personal and financial information from fraudsters. If you are ever concerned that your First Financial accounts have been compromised, don’t hesitate to call us at 732.312.1500 or visit your local branch.

Red Flags in Rescue: Don’t Fall for a Pet Adoption Scam

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At First Financial, we know how much joy a new furry friend can bring. If you’re looking to adopt a pet online, be cautious. Pet adoption scams are on the rise, and can leave aspiring pet owners with their hearts broken, wallets drained – and one big financial headache.

These scams typically occur online through fake websites, social media posts, or classified ads. Scammers will post adorable photos of animals that aren’t real or aren’t available – to lure you into paying for adoption fees, shipping costs, and/or vaccinations. Once you send the money, the scammer will disappear or “ghost” you, and you’ll unfortunately never get your desired pet.

According to the Better Business Bureau, thousands of aspiring pet parents fall victim to puppy adoption scams and similar fraud each year. Victims report losing anywhere from $500 to $2,000 per scam, often without any recourse for recovery.

Whether you’re searching for a rescue or a purebred pet, it’s important to understand the red flags of fraudulent listings before sending any money.

Red Flags to Watch Out For

Be sure to watch out for these common warning signs of a scam:

  • Too-good-to-be-true offers. Purebred puppies or exotic pets listed at a low cost or as “free to a good home.”
  • Unusual payment methods. Scammers will often ask for wire transfers, gift cards, Venmo, or Zelle – all methods that are hard to trace.
  • No video calls or visits. The “seller” avoids letting you see the pet in real time or meet in person.
  • Pushy tactics. You’re pressured to pay quickly before someone else “claims” the pet.
  • Shipping costs. Many times, the scammer will want to ship the pet – charging you more for shipping fees, vet clearance, etc.

How to Avoid Pet Adoption Scams

Before you click “send” on any payment, follow these tips to protect yourself:

  1. Research the rescue agency or breeder. Look for reviews, verify their business license, and check for complaints on BBB.org.
  2. Never pay with untraceable methods. Use a credit card or secure payment system that offers fraud protection.
  3. Insist on an in-person meetup. There are plenty of animals waiting to be adopted. Only adopt one that you’ve met in real life.
  4. Avoid emotional decisions. Scammers will prey on your love for animals. Take your time and don’t let urgency cloud your judgment.
  5. Adopt locally when possible. Visit your local animal shelter or reputable rescue organization in person.

What To Do If You’ve Been Scammed

If you think you’ve been the victim of a pet adoption scam, take immediate action:

  • Report the fraud to the Federal Trade Commission (ftc.gov) and Better Business Bureau.
  • Contact your financial institution to try to reverse or stop any payments.
  • File a police report, especially if significant funds were involved.

Protecting You & Your Finances

First Financial cares about your financial safety and well-being. Before you adopt, take a moment to ensure you’re working with a trusted source. If you ever have questions about suspicious transactions on any of your First Financial accounts or protecting your financial information, our team is here to help. Contact us, stop into your local branch, or visit our website for more financial wellness tips.

Received a Package You Didn’t Order? Brushing and QR Code Scams

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Have you received a surprise package at your doorstep recently? Packages from an unknown sender, especially those including a QR code – are likely part of a dangerous new brushing scam. With new scam tactics evolving constantly, knowing what to look out for and how to respond is important. At First Financial, we’re here to help you recognize these schemes and protect your personal and financial information.

What is a Brushing Scam?

A brushing scam is when someone receives packages they didn’t order, often low-cost or counterfeit items like beauty products or small electronics, from a seller trying to boost their online reputation. The scammer uses the recipient’s personal information (often obtained through data leaks) to create fake customer reviews, falsely increasing the legitimacy of their product listings. While the merchandise may seem harmless, the real concern is that your personal information – name, address, or even online account details, have likely been compromised.

The New Twist: QR Code Scams in Packages

Scammers are now also including QR codes in these unexpected packages. The note may say the QR code will reveal who sent the gift, provide return instructions, or offer a bonus or prize. But in reality, scanning the code could redirect you to a phishing website designed to steal sensitive information like your login credentials or credit card number. Even worse, it may install malware on your device, giving hackers access to your data and apps.

How to Protect Yourself from QR Code and Package Scams

Don’t Scan Unfamiliar QR Codes: If you receive a package you didn’t order, avoid scanning any QR codes inside. These can be designed to mimic legitimate company branding and lead to fake websites that steal personal data.

Check Your Online Shopping Accounts: If the package came from a known platform like Amazon or eBay, login to your account and look for any unauthorized orders. If you see suspicious activity, change your password immediately and report the fraud to the platform.

Change Your Passwords: It’s a good idea to update your passwords on shopping accounts and your email if you received a suspicious package. Always use strong, unique passwords and consider enabling two-factor authentication for extra security.

Don’t Contact the “Sender”: Don’t attempt to reach out, even if a name, phone number, or website is included in the package. Scammers may use this opportunity to trick you into providing more personal details under the guise of resolving the issue.

Monitor Your Credit and Accounts: Visit AnnualCreditReport.com to review your credit report and look for any unfamiliar accounts or inquiries. Also, check your bank and credit card statements for unauthorized transactions.

Consider Freezing Your Credit or Adding a Fraud Alert: If you believe your personal information may be at risk, take additional steps like placing a fraud alert on your credit report or freezing your credit to prevent new accounts from being opened in your name.

Keep Devices Secure and Updated: Ensure your phone and computer software are continuously updated with the latest security patches. A secure device is your first line of defense against malware and phishing attempts.

Use Trusted QR Scanner Apps: If you must scan a QR code, use a QR code scanner app that shows you the destination URL before redirecting you. This provides a chance to spot suspicious links before it’s too late.

What to Do if You Think You’ve Been Scammed

If you received an unsolicited package, scanned a QR code, or noticed suspicious activity on your accounts:

  • Change your passwords immediately – Update and strengthen passwords for your financial and email accounts right away.
  • Contact your financial institution – Report the incident and monitor for any unauthorized transactions.
  • Monitor your credit – Visit AnnualCreditReport.com to review your credit report and closely check for suspicious inquiries or accounts.
  • File a report with the FTC at ReportFraud.ftc.gov and, if necessary, start a recovery plan at IdentityTheft.gov.

Stay Safe with First Financial

We’re dedicated to helping our members stay informed and protected from scams. If you ever suspect fraud or have concerns about any of your accounts, call us at 732.312.1500 or visit one of our local branches.