Author Archives: Business Development Rep Samantha

Home Sweet … Home Improvement Scam?

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Deciding to take on a home improvement can be a big commitment, especially when you have to entrust a contractor with turning your dreams into reality. Unfortunately, scammers posing as trustworthy contractors are promising to do the work – and leaving your home and wallet to take the hit. Before you hire a home improvement contractor, consider these red flags that could indicate that a home improvement scam is happening to you.

What is a Home Improvement Scam?

A home improvement scam begins with receiving a flyer in the mail, viewing an advertisement on social media, or being met with an unsolicited knock on the door from a contractor. The so-called “contractor” will say they were working on another project in your neighborhood and had leftover supplies or were looking for new projects to take on because they would be working “in the area” for the foreseeable future. They are hoping that you have a home improvement need, or that you have been waiting to find a contractor that can meet your requirements. The contractor will somehow check off all the boxes – whether it’s completing the project in a short timeframe or within your budget. However, before you hire the contractor and even after the contractor begins your project – the red flags will start to come out. In the end, your home improvement project might cause additional damage to your home or financial situation, or not be completed at all.

Signs of a Home Improvement Scam

It might seem difficult to tell the difference between a trustworthy and not-so-trustworthy contractor. Below are some red flags that can signal you’ve been approached by a scammer.

  • Pressure to Make an Immediate Decision: A real contractor knows that undertaking a home improvement project isn’t a decision that can always be made immediately. Whether it’s consulting others that should be involved in the decision-making process, or confirming that the project is in your budget – there are countless reasons to “sleep on it.” Plus, getting the green light from your partner and your budget – will make you confident in your decision. A fraudster will persuade you into making an immediate decision so you don’t have time to pick apart the interaction or analyze any red flags.
  • Unrealistic Budget or Timeframe: There might be a reason that the contractors before this one could not complete your project to your specifications. Be cautious if you are approached by a contractor who says they can complete your project in half the time or for half the price that other contractors have given you.
  • Asking for Payment Upfront or Only Accepting Cash: This could signal that a contractor is not planning on completing the project, or that they are not planning on completing the project correctly. If a contractor asks you for payment upfront to “buy the materials,” be cautious.

Tips to Avoid Home Improvement Scams

Here are ways you can protect your home, and your wallet – from home improvement scams.

  • Ask for References: Scammers will be reluctant to hand over references, namely because they do not have good ones. Additionally, scammers won’t want to wait around for you to do your homework because they know they won’t get your business based on what you find. Reputable contractors will gladly hand over references so you can confidently make the decision in hiring them to complete your home improvement project. Their references will speak to the quality of work you can expect if you hired them to take on your project. If someone you know and trust recently completed a home improvement project, consider asking them for recommendations.
  • Get Multiple Estimates: Obtain written estimates detailing the work to be completed, the materials needed, and the anticipated price and completion date. If one estimate is substantially lower than all of the others, consider why this estimate is the odd one out. It might be tempting to go with the lowest estimate. However, this low estimate might end up costing you more in the long-run if the work is completed poorly, is completed using substandard materials, or isn’t completed at all.
  • Do Your Research: Check with organizations, like your local Home Builders Association, to see if any complaints were made against a contractor. You should also look up the business or contractor’s name with words like “scam,” “fraud,” or “complaint.” The Better Business Bureau also has a tool to find BBB Accredited businesses near you.
  • Know the Law: Ensure that the contractor you hire has the proper identification, licensing, and insurance needed to complete the project in your state. Additionally, if you are signing a contract to complete work – ensure that the contract includes all the specifics of completing the project.

First Financial knows that finding the right contractor is important. If you believe that you have fallen victim to a home improvement scam and your financial information has been compromised, don’t hesitate to visit a local branch or call us at 732.312.1500.

If you have found the right contractor and are looking for a way to finance your home improvement project, be sure to check out our Home Improvement Loan. We’ve got great rates, up to 10-year terms, and fixed monthly payments.* Apply online 24/7!

*Available on primary residence only. A First Financial membership is required to obtain a Home Improvement Loan and is open to anyone who lives, works, worships, volunteers, or attends school in Monmouth of Ocean Counties. See credit union for details. Rate will vary based off of applicant’s credit rating. Not all applicants who apply will be approved, subject to underwriting guidelines and credit approval. Lien position and appraisal valuation may affect the maximum loan amount. Not all applicants will qualify for maximum Loan to Value (LTV) ratio. It will be based off of creditworthiness, property type, occupancy, lien position, and loan amount. Rates will be affected by LTV or combined LTV if there is another lien on the property. Loan amounts over $7,500.00 will be required to give First Financial FCU a security interest in their property. Rates will vary based off of lien position and whether the loan is mortgage secured or unsecured. For mortgage secured Home Improvement loans First Financial FCU (FFFCU) will waive closing costs at inception of loan. If loan is terminated within the first 2 years of opening, closing cost waiver is revoked and are required to b

The True Cost of Homeownership

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Achieving homeownership is a common goal amongst adults in the U.S., and is to some – considered to be a right-of-passage into the adult world. The home of your dreams might come with a hefty price tag – and that selling price is really just the tip of the iceberg.  From insurance to property taxes, maintenance and utilities – the total price you will pay to live in your home boils down to more than just your monthly mortgage payment. While you determine what you can afford to pay for your home, be sure to factor in these common expenses associated with homeownership so they don’t catch you off guard.

Insurance

Homeowners Insurance protects homeowners from the cost of repairing or replacing damaged property, as well costs that would arise from someone getting hurt while on your property. Although different policies offer various levels of coverage, homeowners insurance is meant to protect you from the nearly impossible feat of paying out-of-pocket to replace your home if an incident should occur. It is important to remember that even the most comprehensive insurance policies exclude certain events, so it is important to try and expect the unexpected by also setting emergency funds aside. According to NerdWallet, the average annual cost of homeowners insurance is $2,110 per year, or approximately $176 per month – for $300,000 worth of dwelling coverage.

Property Taxes

Property Taxes are fees charged on real estate by state and local government to pay for services and upkeep. The amount of taxes you owe typically depends on your area’s tax rates and the assessed value of your property, usually based on an annual appraisal. Unfortunately, these are an unavoidable aspect of homeownership. However, do remember that your property taxes are to thank for services that aid the local community, such as schools and police.

HOA Fees

Homeowners Association (HOA) Fees are only charged if your home is part of a homeowners association. A homeowners association is an organization that enforces rules on properties and residents, as well as collects fees to maintain common areas and facilities. The HOA fees you may be charged depend on numerous factors, such as the type of property you own, the location, and the amenities that are made available to residents. For example, you may be charged higher HOA fees than someone in another local development because you have access to a community pool or gym. If you live in a major metro area, you can expect higher HOA fees due to location. According to Homes, the national average HOA fee is $243 per month.

Maintenance and Upkeep

A common expense associated with homeownership is maintenance on your home. If you have ever asked a homeowner to recall the price of replacing their roof or their hot water heater and they have reacted with absolute horror, it’s because those replacements cost a pretty penny.  According to Consumer Affairs, home maintenance costs can range from $50 to over $12,000 depending on what needs to be repaired or replaced. As you might expect, there is a big difference in the cost of repairing your roof versus replacing your roof. One way to save money on home maintenance costs in the long-run is to keep up with a regular maintenance schedule on various systems and appliances. This type of regular maintenance can catch a smaller issue before it becomes a bigger one – and keep costs more manageable. Additionally, certain manufacturer warranties require this regular maintenance for your warranty to remain in effect.

Utilities

The old saying goes that the people is what “makes a house a home,” but try making a home without electricity or running water. All joking aside, paying for utilities is necessary to keep your home running. The cost of utilities widely varies depending on the size, location, and age of your home. Older homes may be less energy-efficient, driving up your electric bill by letting in cold air in the winter and hot air in the summer. Additionally, the cost of certain utilities can fluctuate depending on the time of the year. For example, your electric bill can fluctuate based on how often you are using your air conditioning. The prices of certain utilities can fluctuate based on factors largely out of your control, like changes in regulations or supply and demand impacting the price of natural gas. Common utilities you can expect to pay for are electric, natural gas, water and sewer, trash removal, and cable/internet.

In today’s market, navigating homeownership can be tricky – even without the less obvious challenges and expenses to account for. That’s why the mortgage experts in First Financial’s Loan Department offer complimentary video chats and phone calls to assist with the homebuying process, no matter what stage you’re in.

If you’ve found your dream home and are ready to apply, we’re also here to help you through the mortgage application process, or provide you with a quick pre-approval if you’re just starting to shop.* You can also visit a local branch or call 732.312.1500 and select option 4. We’re happy to help you finance your home sweet home!

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Minimum mortgage loan amount is $100,000. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Rates and APRs listed are based on a mortgage loan amount of $250,000. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties.

Financial Tips That Stuck: Advice from First Financial Staff

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April is National Financial Literacy Month, an initiative aimed at instilling individuals and families with the foundation needed to make sound financial decisions. No matter where you are in your financial journey, this month offers the perfect chance to pick up some new financial tips – or reflect on money lessons that have made a life-long impact on you. It is often said that experience can be the best teacher, so we asked our staff: “What is a financial tip that has really stuck with you?” From maximizing the power of credit card rewards to simple budgeting techniques, here are some financial tips that our team swears by – and for good reason.

  1. “Avoid Lifestyle Inflation. When your income increases, resist the urge to upgrade your lifestyle immediately. Instead, direct that extra money toward savings, investments, and especially paying off revolving debt! Having too much revolving debt lowers your credit score considerably.” – Julianne Brandt-Olivier, Director of Lending
  2. “Treat your credit card like a debit card. If you have a rewards credit card, this tip can help you avoid interest charges and overspending while racking up your points or cash back. When you have a debit card, you can only spend what is in your checking account. By self-imposing this same limit on your credit card, you will not only avoid spending more than what you can afford – but you will also reap the benefits of charging purchases you can pay off immediately, to your rewards credit card. This helps your credit card work for you!” – Samantha Colella, Business Development Representative
  3. “Pay the balance on your credit card every week – not just once a month. I have an alarm set for Saturday morning that reminds me to pay off whatever I’ve spent during the week. Making a payment to my credit card weekly keeps me honest as to how much I’m really spending.” –Michelle Comitini, Training Manager
  4. “Live within your means. Don’t spend more than you can afford.” – Nancy Culp, Chief Lending Officer
  5. “Pay yourself first. Think of yourself as a monthly bill. By paying that “monthly bill,” or yourself first – you will always have money tucked away for the future.” – Doreen Cutrona, Assistant Vice President of Member Operations
  6. “Create a budget. Don’t spend it, if you don’t have it. Also, start investing early.” – Sanjiv Dave, Director of Member Services
  7. “If you have debt (and we all do), list the debt in the order of highest interest rate to the lowest. Pay the debt with the highest interest rate off first so that you pay less interest in the long run. This also helps prioritize and keep you on track. It keeps things in perspective and helps you tackle the debt in a methodical and systematic way. When the largest interest rate debt is paid, you can check it off and go right on down the line and feel a sense of accomplishment.” – Eun Sook Kang, Compliance and Risk Specialist
  8. “Work toward eliminating revolving debt. Try to allocate extra funds in addition to your minimum required monthly payment. Apply this extra money to the debt with the highest interest rate. When that balance is paid off, continue to add to the next debt with the second highest interest rate and so on. In this way, you’re attacking the debt that accrues the highest monthly finance charges first, to pay off remaining debt faster.” – Michael Walker, Assistant Vice President of Information Technology
  9. “It might be a bit old school in today’s digital world, but each time I get paid I go over and reconfigure my budget for the upcoming 2 weeks. By writing out the money I have available on paper, my upcoming expenses, and how much I am going to put toward any bills – it helps me keep track of my spending more so than just looking at my account on my phone or in online banking. I still do both of those as well and monitor all my transactions, but actually writing out where my money is going helps me stay on track.” – Jessica Tortorice, Vice President of Marketing and Business Development

At First Financial, our top priority is supporting our members in achieving their financial goals – and we believe in the power of financial education to help achieve them. Subscribe to our First Scoop Blog to receive financial resources and tips right in your inbox.

What is a finacial tip that has stuck with you? Let us know in the comments!

Things to Do on a Budget in Monmouth & Ocean Counties this April 2025

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The old saying goes that April showers bring May flowers. Hopefully April includes more sunny days than rainy, so you can enjoy these budget-friendly activities in Monmouth and Ocean Counties with your family and friends!

April 5

Easter in the Park (Howell) – Join Howell Township in celebrating Easter from 11am-2pm at Oak Glen Park. The kiddos can enjoy music mixed by DJ Jeff as they get their faces painted, visit the petting zoo, hop on some rides, and meet the Easter Bunny. Don’t forget to equip your youngsters with baskets, as there will be Easter egg hunts arranged by age for those 10 and younger. The event is free for all to attend. Should there be unanticipated bad weather, the rain date will be April 6th. For more information, click here.

Town Wide Garage Sale (Hazlet) – Hidden treasures await you in the town wide garage sale in Hazlet, taking place from 9am-4pm. With the number of residents hosting garage sales at 60 and counting, you will be sure to find something you love. In supporting local sellers, you will find discounted items – which keeps more money in your pocket and more items out of landfills. What better way to celebrate Earth Day early? There is no fee to buy or sell items, but sellers must fill out a form with the town to be listed on the interactive Google Map of the addresses residents can visit. There is a rain date of April 6th. Click here to learn more.

April 6

Yoga at Popcorn Park Animal Refuge (Forked River) – Unroll your yoga mat and experience the serenity of the outdoors at Popcorn Park Animal Refuge at 9am. A yoga instructor will guide you through a one-hour yoga session meant for all experience levels, incorporating the serene outdoors and peaceful sounds of the rescue animals. After the session concludes, you can explore the zoo and meet some of those friendly rescue faces. Admission is $20 and includes the yoga session and access to the zoo. The event is outdoors and weather-permitting, so please dress accordingly. To learn more and purchase tickets, click here.

April 10

Tea, Scones, and Easter Egg Hunt (Toms River) – If your little one has ever dreamed of having a tea party with the Easter Bunny, head over to the Mathis House from 6:30pm-8pm. Tea will be served with an array of flavors, as well as scones and desserts to choose from. The Easter Bunny will hang out with your little ones as they take part in an egg-citing Easter egg hunt. Admission is $20 per adult and $10 per child, with children five and under (accompanied by an adult) being free to attend. To make a reservation, call 732.818.7580. You can learn additional information here.

April 11

Spring Disco and Night Market (Asbury Park) – If you’ve been looking to time-travel back to the 70s but never knew how, head down to Convention Hall in Asbury Park from 6pm-11pm. This night out promises to be full of groovy tunes, include life-size versions of your favorite games, and have Instagram-worthy photo opportunities. There will also be items for purchase by the best local makers. The event is for those 21+, allowing all attendees to explore any of the multiple on-site bars. Tickets are $25 in advance and $30 at the door. Click here to view a sneak-peak of the happenings at the Spring Disco and to purchase tickets.

April 12

Spring Craft Show (Tinton Falls) – Coming up soon will be Mother’s Day, Father’s Day, graduation and wedding season – you’ll have a chance to shop for any of these spring events at Fort Monmouth Recreation Center from 9am-2pm. Over 40 local artisans will be selling home décor, jewelry, pottery and ceramics, and countless other handcrafted items perfect for gift-giving to others (or yourself). Admission and parking are free for all who attend. For additional information, click here.

Spring Into Popcorn Park (Forked River) – Bring your friends and family down to Popcorn Park for a day full of fun for the whole family from 9am-2pm. The event kicks off with an Easter egg hunt, with each child permitted to find and keep up to 10 eggs. No basket? No problem – there will be bags available for youngsters to decorate and use in the egg hunt. The rest of the day promises photos with the Easter Bunny and live enrichment demonstrations at the Education Center, giving attendees a chance to meet a few of Popcorn Park’s special rescues. The egg hunt is $10 per child (children 2 and under free) and photos are $25 per group. Adults will pay $10 each for admission to the refuge. Click here to learn more and purchase tickets.

April 19

Breakfast with the Easter Bunny (Brick) – Hop on over to the Laurelton Fire Company for breakfast with the Easter Bunny from 8am-11am. Tickets are $10 in advance and $12 at the door for those ages 2 and above – and includes a delicious pancake breakfast, approved by none other than the Easter Bunny himself! In addition to breakfast, there will be an Easter flower sale from 8am-4pm. Click here to learn more.

April 25

Chef’s Night Out (Toms River) – Competition brings out the best in the innkeeper of the Mathis House, so come sample specialty tapas plates that won’t disappoint – beginning at 7pm. From tea sandwiches to appetizers – you name it, it will be there. Each attendee will receive a grading sheet to score and provide feedback on each tapas plate, eventually crowning the best of the night. There will be live music, and the event is BYOB for those 21+. Tickets are $45 for adults and $25 for seniors. Click here to learn more, including how to purchase tickets.

April 26

Earth Day Park Beautification (Middletown) – Take spring cleaning from your home to the Murray Farmhouse Garden at Poricy Park from 9am-11am. With the garden looking for a complete refurbish, the event boasts to be the perfect community service opportunity – especially for those not afraid to get their hands a little dirty. The event is free for all to attend for ages 2+, with the park asking all minors to be accompanied by an adult. For more information, click here.

Highlands Fire Department Food Truck Event – Support the Highlands Fire Department and stop by their food truck and vendor event from 12pm-5pm. There will be street foods from all over New Jersey, a pop-up market displaying unique items, activities for little ones, a 50/50 raffle, and a beverage garden for attendees 21+ to enjoy. Admission is free for all who attend. You can find more information here.

Spring Kick Off Car & Truck Show (Lacey) – “Cruise” into the weekend with a car and truck show at Lacey High School from 9am-2pm. With music, food, ice cream trucks, and a lineup of sentimental cars for auto lovers to enjoy – this promises to be a fun day out for the entire family. Admission is free for all who attend, and there is a rain date of April 27th. Click here to learn more.

Finding a Credit Card That Fits Your Lifestyle

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Although picking a credit card isn’t as big of a decision as buying a house or car, choosing the right credit card to add to your wallet isn’t a decision that should be taken lightly. You might have an idea of the cards that are out there as a result of receiving offers in the mail, or you might just be embarking on your hunt for “the one” – your dream credit card, that is. Either way, the number of options available to you might be overwhelming. Just like the cliché saying goes, there is a credit card out there for everyone – you just have to find it. Here are some steps to help you find a credit card that fits your lifestyle.

Check Your Credit Report

Although report cards as you know them stop after high school, a credit report functions like an “adult” report card. A credit report is a snapshot of your credit situation today and your credit history over time, such as your current loans and how well you’ve done paying those loans on time. Just like your parents might have rewarded you for bringing home a satisfactory report card, credit card companies reward you for maintaining a good credit history by qualifying you for credit cards with better perks. There are various ways to check your credit score and once you do – you’re one step closer to identifying what credit cards you may qualify for. Check out our Guide to Understanding Your Credit Score to understand what factors make up your credit score and how to maintain or improve it.

Identify Which Credit Card Will Help You Meet Your Needs

Once you know your credit score, you can better assess what type of credit card will best meet your needs and what you can reasonably expect to get approved for. According to NerdWallet, there are three general types of credit cards:

  • Cards for those with limited or damaged credit history: Some credit card issuers offer credit cards for young people over age 23 who are looking to establish credit history. These credit cards are often easier to get qualified for and typically have lower credit limits. Secured credit cards may be an option if you have no credit or poor credit. To compensate for the added risk, the credit card issuer will take an initial deposit from you which sets your “credit limit.” Your deposit is not used to pay for your purchases – the deposit is there for the card issuer if you don’t pay your bill. If you exhibit good behavior, such as paying your bill on time each month – the issuer may upgrade your account to an unsecured credit card with no deposit required.
  • Cards for those who value low interest: Cards with introductory 0% APR periods or ongoing low APRs are usually better options for those who expect to carry a balance, have an unpredictable income, or who expect to make large or emergency purchases.
  • Cards for those who value rewards: Rewards credit cards are generally well-suited for those who intend to pay their balance in full every month and not incur interest. That’s because rewards credit cards generally have higher APRs, but provide benefits like sign-up bonuses and points, miles, or cash back on purchases.

It’s important to examine your values and spending habits to determine which credit card type would be the best fit for you.

It’s Time for a Vocabulary Lesson

You are setting yourself up for success when it comes to using your credit card responsibly if you understand important credit card terminology. Although there are more comprehensive lists of credit card terminology, here are a few terms to get you started.

  • Annual Percentage Rate: Usually referred to as APR, this is the interest rate you are charged if you carry a credit card balance each billing cycle – if you don’t pay your balance off in full.
  • Credit Limit: The maximum amount of money you can charge to your credit card, set by your credit card issuer. This is a ceiling, as you typically can’t spend more than your credit limit without incurring penalties.
  • Minimum Payment: The smallest amount you can pay on your credit card bill each month to keep your account in good standing. Failing to make this payment typically results in late payment penalty fees.

Apply for the Credit Card That Fits Your Lifestyle

Once you’ve done your homework and are confident in your decision, it’s time to apply for your credit card of choice. Depending on the type of credit card you decide on, ensure you understand all of the terms and benefits to make the card work for you. For example, if you applied for a credit card because you liked their introductory cash bonus offer – make sure you understand the amount you have to spend by the deadline to ensure you qualify for the cash bonus.

If your credit card research has led you to First Financial, rest assured we have a credit card to fit any lifestyle. Whether you’re looking for a no-frills credit card with a lower interest rate, a credit card that’s a stepping stone, or a credit card that rewards you – we have various options that put your needs and wants first.* You can apply online 24/7, or call our Loan Department at 732-312-1500, Option 4 if you have questions.

*APR varies up to 18% when you open your account based on your credit worthiness. These APRs are for purchases and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. See firstffcu.com for current rates.

Sneaky Six: IRS Scams Taxpayers Should Watch Out For

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IRS scammers have been around for a long time and they’re sticking around because, unfortunately – people keep falling for their changing tactics. Knowing this, the Internal Revenue Service (IRS) annually publishes a list of tax scams coined the Dirty Dozen, in an effort to increase awareness. Here are some of the most common scams that taxpayers should watch out for year-round, but especially during tax time.

1. Someone Using Your Social Security Number to File Taxes

A scammer might attempt to beat you to the chase – that is, beat you to claiming your own tax refund. This tax scam occurs when a fraudster uses your social security number to file and claim a tax refund. Oftentimes, the first inkling that you’re a victim is if the IRS rejects your tax return once you file. There are various reasons your tax return can be rejected, but it’s a surefire sign of identity theft if the IRS has another tax return filed in your name or a record of income from an employer you don’t work for.

There are resources available to you if someone has stolen your identity and filed a tax return with the IRS. First, you should report the identity theft to IdentityTheft.gov. This government website will aid you in creating various documents, such as an IRS Identity Theft Affidavit and personal recovery plan. You should then submit your Identity Theft Affidavit to the IRS – which notifies them of your case to begin investigating it. Alternatively, you can obtain the Identity Theft Affidavit directly from the IRS and submit it by mail. Lastly, follow the steps in your personal recovery plan to help mitigate the fallout and limit the personal and monetary damages of identity theft.

2. Ghost Tax Preparers that Disappear with Your Cash

While many tax preparers act with professionalism and integrity, tax season gives rise to unscrupulous tax preparers called “ghost preparers” who misguide taxpayers in an effort to make a quick buck or disappear with their refunds. These preparers take advantage of tax credits or deductions the taxpayer doesn’t qualify for, or invent fake sources of income to entice them with fake large refunds. They falsify tax returns in an effort to maximize the amount of the refund because they often charge a “percentage fee” based on the amount of the return. The ghost preparer typically refuses to sign the return after it is prepared, allowing them to disappear with their payment and leave you to deal with the consequences of falsifying a tax return. It is best practice to avoid any tax preparer who charges a cash only fee, does not give you a receipt, or who charges a percentage of your refund as their preparer fee. In addition, one who tries to invent false income or get tax credits and deductions you aren’t qualified for, or who deposits your refund into their own account – will typically “ghost” you.

3. Email and Text Scams

Many scams impersonating legitimate organizations begin with unsolicited emails and text messages, and IRS scams are no exception. The IRS will never demand immediate payment of a tax bill and threaten consequences for not doing so via email or text message. Similarly, the IRS will never notify you of a large tax refund via email or text message. These emails and text messages may also prompt you to click links that would download malicious software on your device or steal your personal and financial information. In the event the IRS needs to contact you, communication is typically initiated through regular U.S. mail. There are exceptions to this, as well as other ways the IRS may contact you – which can be found on the IRS webpage how to know it’s the IRS.

4. Bad Social Media Advice

In an effort to increase views and generate income, some social media influencers have been known to share bad tax advice using clickbait – or content that is designed to attract attention and entice users to click. It is hard to ignore content with headlines such as “find out how this little-known tax deduction can increase your tax refund.” Additionally, some influencers will have you pay to subscribe to gain access their exclusive “tax advice” on various platforms, but they are essentially just taking your money and sending you on your merry way – with incorrect tax advice. If you interact with this content and follow their bad advice, not only will you file a fraudulent tax return – but you also encourage these influencers to continue producing misleading content.

5. Fake Tax Bill

If you receive an urgent request to pay a tax bill with gift cards, cryptocurrency, or any other unusual yet specific method of payment – it’s a fake tax bill scam. The IRS will never call to demand immediate payment or make threats if you cannot render payment. As mentioned previously, the IRS will only contact you via regular U.S. mail.

6. IRS Individual Online Account Help Scam

An individual online account through the IRS provides taxpayers with a portal to access their tax information, such as payment history and tax records. Scammers are now posing as third parties to assist with setting up these online accounts to steal taxpayers’ personal information, submit fraudulent tax returns, and take their tax refunds. The scammer may also sell the personal and financial information to other fraudsters who may file fake tax returns and steal refunds, open loans and credit accounts in the taxpayer’s name, and ultimately steal their identity.  The IRS has a guide to establishing an IRS online account and avoiding scams.

First Financial knows that tax season can be hard enough, and that’s without the worry of being scammed being added into the mix. If you have any questions or reason to suspect that your information has fallen into the hands of a scammer this tax season, don’t hesitate to contact us at 732.312.1500 or visit us at your local branch.