Category Archives: Important Alerts & Scams

5 Common Types of Check Fraud Scams You Should Know

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This August, we’re continuing to focus on check fraud scams and how you can avoid becoming a victim. Even in a digital world, checks (paper or electronic) contain valuable information that criminals can use to steal money or commit fraud. At the same time, scammers are increasingly combining traditional check scams with electronic payments, mobile deposits, and peer-to-peer payment apps.

Understanding the most common types of check fraud can help you recognize warning signs and better protect your finances.

1. Mail Theft

One of the most common ways check fraud begins is through stolen mail.

Criminals may target residential mailboxes, mailrooms, or public collection boxes looking for outgoing checks such as rent payments, utility bills, or personal checks. Once stolen, those checks may be altered, copied, or used to access personal banking information.

To reduce your risk:

  • Drop off mail inside the post office when possible.
  • Avoid leaving outgoing checks in unsecured mailboxes overnight.
  • Monitor expected payments and mail delivery closely.

2. Check Washing

Check washing happens when a thief steals a completed check and removes the ink using chemicals. Once the original writing is removed, they will rewrite the check with a new payee name or a larger amount.

For example, a $50 utility payment could become a $500 payment to a fraudster. Even a small check can be changed into a much larger fraudulent payment.

Using permanent gel pens and avoiding blank spaces on checks may help reduce the risk of alteration.

3. Counterfeit Checks

Counterfeit checks are fake checks created using real bank account information. Scammers may use stolen logos, routing and account numbers to print checks that look legitimate. This can happen after mail theft or data theft.

Counterfeit checks may be used to make purchases, withdraw cash, or scam others. Just because a check looks official does not always mean it is legitimate.

4. Fake Check Scams

Fake check scams often begin with an unexpected opportunity or payment. A scammer may:

  • Offer a fake job.
  • Send a prize or lottery “payment.”
  • “Overpay” for an online purchase.
  • Send money for supplies or equipment.

The victim is then instructed to deposit the check and quickly send some of the money back.

Many of these scams now involve electronic checks, mobile deposits, or peer-to-peer payment apps. A scammer may email a digital check image, ask someone to deposit it through a banking app, and then pressure them to send money electronically before the check fully clears. Although funds may appear available in an account, the check can still later be rejected and could leave the victim responsible for the lost money.

5. Forged Checks

Forged checks happen when someone signs or changes a check without permission. This may include:

  • Signing another person’s name.
  • Altering payment information.
  • Changing endorsement details.

Forgery can happen through stolen checkbooks, lost checks, or unauthorized access to financial information. Monitoring your account regularly can help you spot suspicious activity sooner.

Why This Matters

Check fraud continues to evolve, and scammers are finding new ways to combine traditional check fraud with today’s digital payment methods.

The good news is that awareness and simple habits can help reduce your risk. Understanding how these scams work can help you:

  • Spot warning signs earlier.
  • Avoid common scams.
  • Protect your banking information.
  • Take action quickly if something seems wrong.

 How to Protect Yourself

  • Monitor your accounts regularly.
  • Set up banking alerts.
  • Be cautious with unexpected checks or payments.
  • Never send money back based on a deposited check alone.
  • Use secure mail drop off locations whenever possible.

Protecting your money starts with awareness. Check yourself – stop check fraud before it starts.

Article Source: Made in partnership with the American Association of Credit Union Leagues, America’s Credit Unions, and TruStage

What is Check Fraud? How it Happens and Why it’s Increasing

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Check fraud may sound like an old problem, but it’s still one of the fastest-growing types of financial fraud, and it can affect anyone. While many payments now happen online, millions of people still use paper checks to pay rent, send gifts, make business payments, or cover bills. And any time money is moving, you can guarantee fraudsters are paying attention.

Check fraud has changed over the years. It’s no longer just about stolen checks or forged signatures. Today, criminals use a mix of theft, scams, and technology to steal money and personal banking information. Understanding what check fraud is and why it’s increasing can help you protect your money and avoid becoming a victim.

What is Check Fraud?

Check fraud happens when someone uses a check illegally to steal money or gain access to personal and financial information.

That can mean stealing a check from the mail, creating a fake check, changing the details on a real check, or using scams to convince someone to deposit a fraudulent check.

Checks include sensitive information like your full name, address, account number, and routing number. In the wrong hands, that information can be used for more than just one transaction. And because checks can take time to process, fraud may not be discovered right away.

Why is Check Fraud Increasing?

One of the biggest reasons check fraud continues to rise is mail theft. Criminals often target residential mailboxes, mailrooms, and public mail collection boxes looking for outgoing payments like rent checks, utility bills, or gifts. Once a check is stolen, it can be altered, copied, or used to access personal banking information – turning one stolen envelope into a much larger financial problem.

Checks Still Contain Valuable Information

Checks contain a significant amount of personal and financial information in one place. This information can be used not only to steal from your account, but also to create counterfeit checks or commit other types of financial fraud. That makes checks especially valuable to criminals looking for easy access to sensitive information.

Scams are Evolving

Check fraud is no longer limited to physical theft. Scammers now use fake job offers, prize notifications, and online marketplace scams to send bogus checks and pressure victims into sending money back. These scams often create urgency and can look convincing.

Fraud Spreads Faster Online

Social media, online job boards, and digital marketplaces make it easier for scammers to reach more people, especially younger adults. A fake opportunity can spread quickly and look legitimate.

Who is Most at Risk?

Anyone who uses checks, or receives them, can be at risk. But some groups may face greater exposure.

  • Renters and Households Paying Bills by Check: Rent payments and mailed bills often involve large amounts of money and predictable timing, making them attractive targets.
  • Small Business Owners: Businesses may issue multiple checks each month for payroll, vendors, or operations. More transactions can mean more opportunities for fraud.
  • Older Adults and Seniors: Many older adults still rely on checks for bills, gifts, or charitable giving. They may also be more likely to use the mail regularly, increasing exposure to mail theft.
  • Families Managing Shared Accounts: When multiple people use the same account, unusual activity can be easier to miss if no one is reviewing statements regularly.
  • Younger Adults and First-Time Workers: Younger generations may not write many checks, but they are often targeted through fake job scams, prize scams, and online marketplace scams.

Many of these scams also involve electronic checks, where a scammer sends a fake check digitally or instructs the victim to deposit or transfer funds electronically before the check fully clears.

A scammer may “hire” someone, send a check for supplies or equipment, and ask the recipient to send money back. Later, the check bounces – and the victim is unfortunately responsible for the lost money.

Why it Matters

Check fraud can create more than just financial loss – it can disrupt your life. Victims may face:

  • Unauthorized withdrawals
  • Delayed bill payments
  • Missed rent or utility payments
  • Overdraft fees
  • Account freezes
  • Stress and time spent resolving fraud

For some households, even a temporary loss of funds can create serious challenges. In fake check scams, victims may lose money they willingly sent – without realizing the original check was fake. The more you understand about how check fraud works, the better prepared you are to recognize suspicious situations and protect yourself.

Simple Steps to Protect Yourself

You do not need to stop using checks altogether, but it helps to use them carefully. Start with these simple habits:

  • Mail checks from secure locations, like inside the post office.
  • Avoid leaving outgoing mail in your mailbox overnight.
  • Review your bank account regularly.
  • Set up transaction alerts through your financial institution.
  • Be cautious of checks connected to job offers, prizes, or urgent requests.
  • Contact your financial institution quickly if something feels wrong.

Check fraud is growing, but knowledge and simple habits can help reduce your risk.

Check yourself – stop check fraud before it starts.

Article Source: Made in partnership with the American Association of Credit Union Leagues, America’s Credit Unions, and TruStage

Don’t Get Scammed by Fake Airline Customer Service

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A canceled flight or last-minute schedule change can leave you scrambling for help. Scammers know travelers are stressed and looking for a fast solution, so they have been known to create fake airline customer service numbers that appear in online searches, advertisements and deceptive websites.

The person who answers may sound professional, use the airline’s name and ask for details that seem connected to your reservation. Before you share personal information or make a payment, take a moment to confirm that you have reached the airline through an official channel.

How the Scam Works

The scam often begins when a traveler searches online for an airline’s phone number after a delay, cancellation or booking problem. A fraudulent number may appear near the top of the results, including in a sponsored listing. The traveler calls and reaches someone pretending to represent the airline.

The scammer may ask for your booking confirmation, credit or debit card number, passport details or other personal information. They might claim you need to pay a fee immediately to rebook your flight, protect your seat or receive a refund. Some scammers also direct travelers to a fake website or ask them to download software that gives the scammer remote access to a phone or computer.

Watch for These Warning Signs

  • The representative may pressure you to pay immediately or tells you that your reservation will be lost if you don’t.
  • You are asked to pay by gift card, wire transfer, cryptocurrency or a peer-to-peer payment app.
  • The caller requests your online banking password, PIN or one-time security code.
  • You are told to download an app or remote-access software, so the representative can “help.”
  • The person cannot confirm basic reservation details, but continues asking you for sensitive information.
  • The website address is misspelled, contains extra words or does not match the airline’s official domain.

A legitimate airline may need information to confirm your reservation and may charge a valid fare difference or service fee. The key is to verify that you are communicating with the airline before sharing information or approving a payment.

How to Contact an Airline Safely

Use the Airline’s Official App or Website: Open the airline’s mobile app or type its known website address directly into your browser. Avoid clicking a search advertisement simply because it appears first.

Check Your Travel Documents: Your confirmation email, boarding pass or original booking receipt will typically include verified contact details. Be cautious with messages that arrive unexpectedly and direct you to a new phone number or link.

Ask for Help at the Airport: When you are already at the airport, visit the airline’s customer service desk or ask a uniformed employee where to get assistance.

Be Careful on Social Media: Scammers also create fake airline profiles and contact travelers who post publicly about delays or cancellations. Do not move the conversation to a private message or share reservation details until you verify the account through the airline’s official website.

What to Do if You Shared Information

End the conversation and contact the airline through a verified channel. If you provided financial information or approved a suspicious payment, act quickly.

  1. Contact your financial institution or card issuer and explain what happened.
  2. Lock or turn off the affected card and review recent transactions.
  3. Change compromised passwords from a trusted device and enable multifactor authentication.
  4. Report unauthorized activity and keep copies of related messages, receipts and call details.
  5. Consider a fraud alert or credit freeze if you exposed sensitive information.

First Financial members can use First Financial Wallet to lock eligible First Financial cards, set transaction controls, and dispute transactions.* You can also review our fraud prevention guide and additional identity theft information in our online resources, or visit the Important Alerts & Scams section of our First Scoop blog to stay up to date on the latest scams.

If you notice suspicious activity involving a First Financial account, call 732-312-1500 or visit your local branch. A few minutes spent verifying contact information can help keep a frustrating travel problem from becoming a financial one.

*Data rates may apply. Check with your mobile phone carrier for details. First Financial Wallet is available through the First Financial Mobile App and Online Banking.

Article Sources: Consumer Affairs | Federal Trade Commission 

Advance Fee Scams: Warning Signs and How to Protect Yourself

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An advance fee scam typically involves a promise of a loan, credit card or cash advance in exchange for an upfront payment. Once the fee is paid, the promised funds never arrive.

According to data from the Federal Trade Commission (FTC), consumers lose billions of dollars to fraud each year. As scammers become increasingly sophisticated, understanding common warning signs can help protect your finances and personal information. Understanding how these scams work can help you protect your finances and avoid becoming a victim.

What is an Advance Fee Scam?

An advance fee scam occurs when a person or company claims they can provide a loan, credit card or financial service, but requires payment before delivering the promised funds.

The fees may be described as:

  • Loan processing fees
  • Insurance fees
  • Application fees
  • Security deposits
  • Administrative costs

In many cases, scammers claim the payment is required to guarantee approval, even if you have poor credit or limited borrowing history. Once the fee is paid, the promised money never arrives.

What are Some Warning Signs of an Advance Fee Scam?

Recognizing these common red flags can help you avoid fraudulent offers.

Guaranteed Loan Approval: Be cautious of any “lender” that guarantees approval without reviewing your financial information. Legitimate financial institutions evaluate several factors such as income, credit history, and repayment ability before making lending decisions.

Requests for Upfront Payment: One of the most common indicators of an advance fee scam is a request for payment before receiving loan proceeds. Remember this simple rule: Never pay money to receive money.

Pressure to Act Quickly: Scammers often create a sense of urgency by claiming an offer is available for a limited time or that immediate action is required. Pressure tactics are designed to prevent consumers from researching the offer or asking questions.

Unsolicited Loan Offers: Unexpected emails, text messages, social media messages or phone calls offering guaranteed loans should be treated with caution.

Requests for Unusual Payment Methods

Be wary if someone asks you to pay using:

  • Gift cards
  • Wire transfers
  • Cryptocurrency
  • Peer-to-peer payment apps

These payment methods can make it difficult to recover lost funds.

How Can You Protect Yourself from Loan Scams?

Before applying for any loan or cash advance, take these precautions:

Verify the Lender: Research the company online and confirm that it has a legitimate website, physical address and customer service contact information.

Read Reviews and Check Credentials: Look for independent reviews and verify that the lender operates legally in your state.

Protect Personal Information: Do not provide sensitive personal or financial information to unsolicited callers, emails or text messages.

Review Loan Terms Carefully: Take time to understand the loan terms, fees, and repayment requirements before signing any agreements.

What Should You Do if You Suspect a Scam?

If you believe you’ve encountered a loan scam:

  1. Stop communicating with the individual or company.
  2. Do not send additional money or information.
  3. Monitor your financial accounts for suspicious activity.
  4. Change passwords if personal information may have been compromised.
  5. Report the incident to the appropriate consumer protection authorities, such as the FTC.

Taking action quickly can help limit financial losses and protect your personal information.

Frequently Asked Questions

Are Upfront Loan Fees Legal? Some legitimate loans may include fees that are disclosed within the loan agreement. However, lenders generally do not require consumers to send money before receiving loan funds.

Can Scammers Use Fake Lender Websites? Yes. Fraudsters often create professional-looking websites, emails, and advertisements that mimic legitimate financial institutions. Always verify a lender’s contact information and reputation before sharing personal information or applying for a loan.

What is the Biggest Warning Sign of an Advance Fee Scam? A request for payment before receiving a loan is one of the most common warning signs. If a lender asks for money upfront, take time to verify the legitimacy of the offer before proceeding.

How Can I Verify a Lender is Legitimate? Before applying for a loan, research the lender’s website, verify contact information, read customer reviews and confirm that the company is authorized to operate within your state. Legitimate lenders are transparent about their products, fees, and lending requirements.

Protecting Your Financial Future

Financial scams continue to evolve, making awareness one of the most effective tools for protecting yourself.

Before accepting any loan offer, take time to verify the lender, review the terms, and ask questions. If an offer seems too good to be true, it may be worth taking a closer look.

At First Financial, we’re committed to helping our members make informed financial decisions and protect themselves from fraud through education, trusted financial guidance, and responsible banking practices.

Remember: Legitimate financial institutions will clearly explain their products, disclose applicable fees, and give you time to review your options before making a decision.

To continue learning about financial wellness and protecting yourself from fraud, visit our Tools & Publications page or explore related articles on our First Scoop Blog, including resources on financial security, identity theft protection, and smart money management. If you have questions about our financial products, account security, or potential scams, our team is here to help – contact us today.

Cybersecurity Basics for Small Businesses

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In today’s digital world, cybersecurity isn’t just an IT issue – it’s a business essential. Small businesses are increasingly targeted by cybercriminals, often because they have fewer protections in place. With a few smart practices, you can significantly reduce your risk.

Why Cybersecurity Matters for Small Businesses

Many small business owners assume hackers only go after large corporations, but that’s not always the case. Cybercriminals look for easy entry points, and smaller organizations can be more vulnerable.

Even a single data breach can lead to:

  • Financial loss
  • Operational disruption
  • Damage to your reputation
  • Loss of customer trust

That’s why building strong cybersecurity habits is critical to protecting your business and your customers.

1. Protect Your Devices and Data

Start with your everyday tools.

  • Keep software up to date: Regular updates fix security vulnerabilities and should be set to automatic whenever possible.
  • Back up important files: Store backups offline or in the cloud so you can recover quickly if something goes wrong.
  • Use passwords on all devices: Laptops, phones, and tablets should always be secured.

Think of this as your first line of defense, keeping your systems current and your data recoverable.

2. Strengthen Access with Passwords and Authentication

Weak passwords are one of the most common entry points for cyberattacks.

  • Use strong passwords (at least 12 characters with a mix of letters, numbers, and symbols).
  • Never reuse passwords across accounts.
  • Enable multi-factor authentication (MFA) for sensitive systems.

MFA adds an extra layer of protection, like a one-time code sent to your phone – making it much harder for others to gain access.

3. Secure Your Network

Your internet connection is a gateway into your business, so it needs to be protected.

  • Change default router names and passwords.
  • Use WPA2 or WPA3 encryption on your Wi-Fi network.
  • Turn off remote access unless absolutely necessary.

If employees work remotely, consider using a secure VPN connection to keep data protected.

4. Train Your Employees

Your team plays a major role in keeping your business secure.

  • Teach employees how to recognize phishing emails and suspicious links.
  • Provide regular cybersecurity training and updates.
  • Encourage safe browsing and password practices.

Even the best systems can be compromised by human error, so awareness is key.

5. Limit Access to Sensitive Information

Not every employee needs access to everything.

  • Restrict access based on roles and responsibilities.
  • Regularly review who has access to critical systems.
  • Remove access promptly when roles change.

This reduces the risk of both accidental and intentional data exposure.

6. Encrypt Sensitive Information

Encryption protects your data, even if it’s intercepted or stolen.

  • Encrypt laptops, mobile devices, and storage systems.
  • Protect customer and financial data both in storage and during transmission.

This ensures sensitive information stays unreadable to unauthorized users.

7. Make Cybersecurity Part of Your Daily Operations

Cybersecurity isn’t a one-time setup, it should be part of your ongoing business practices.

  • Create a data breach response plan.
  • Regularly review and update your security measures.
  • Monitor systems for unusual activity.

Having a plan in place can help your business respond quickly and minimize damage if an incident occurs.

Cybersecurity Doesn’t Have to Be Overwhelming

Cybersecurity may feel overwhelming, but starting with the basics can make a big difference. By protecting your devices, training your team, and building strong habits – you can safeguard your business from costly cyber threats.

At First Financial, we’re committed to helping our business members stay secure and financially strong. Whether you’re managing day-to-day operations or planning for growth, taking steps to protect your data is one of the smartest investments you can make in your business.

Learn more about protecting your private data and common scams on our First Scoop Blog. If you notice any unusual activity on any of your First Financial accounts, contact us right away.