Category Archives: Important Alerts & Scams

Secret Santa Turned Scam: What to Know About the “Secret Sister” Gift Exchange

Posted on by
Reply

The holidays are a time for generosity, connection, and giving back – which is exactly why scammers ramp up their activity this time of year. One scheme that resurfaces every holiday season is the “Secret Sister” gift exchange scam, often disguised as a Secret Santa-style tradition on social media.

While the idea sounds harmless and festive, this “gift exchange” is actually an illegal pyramid scheme designed to benefit only a few people at the top, while leaving most participants with empty hands and in some cases – lost money.

Here’s how the scam works, what to watch out for, and how to protect yourself and your family.

What Is the “Secret Sister” Scam?

This scam typically appears on platforms like Facebook, Instagram, and WhatsApp. A post usually invites you to join a gift exchange where you’ll:

  • Send one gift (often $10–$20 in value) to a stranger.
  • Add your name to a list.
  • Share the post with friends so more gifts come back to you.

The promise? If enough people join, you’ll receive multiple gifts in return.

In reality, very few participants ever receive anything. The system only works for the first few people at the top, making it a classic pyramid scheme – which is illegal in the U.S.

Why This Scam is So Dangerous

While it may seem like “just a gift,” this scam can lead to:

  • Financial loss.
  • Sharing personal information with strangers.
  • Increased risk of identity theft.
  • Friends unintentionally scamming friends.

Even worse, many people unknowingly help spread the scam by reposting it.

Common Red Flags to Watch Out For

If you see a post that includes any of the following, proceed with extreme caution:

  • Promises of receiving multiple gifts in return for sending just one.
  • Being asked to send a gift to someone you don’t know.
  • Instructions to copy and paste the post exactly as it appears.
  • Requests to share in multiple groups.
  • Pressure to act quickly.

If it sounds too good to be true, it usually is!

What to Do if You See the Scam

If you encounter a “Secret Sister” post:

  1. Do not participate.
  2. Do not share the post.
  3. Report the post on the social platform.
  4. Let the person who posted it know, as they may not realize it’s a scam.

Helping to stop the spread protects others in your community, too.

How First Financial Helps Keep You Safe

At First Financial, protecting your financial well-being is our top priority. Our team is always here to help you:

  • Spot common scams and fraud trends.
  • Secure your accounts.
  • Understand safe ways to give during the holidays.
  • Recover as quickly as possible if suspicious activity occurs.

If you ever have questions about a suspicious message or payment request – contact us right away. It’s always better to ask if you are unsure, than to risk your financial security.

The Bottom Line

The “Secret Sister” scam thrives during the season of giving because it taps into trust, generosity, and community – but true holiday spirit should never come with financial risk. This year, protect yourself and your loved ones by staying informed, trusting your instincts, and choosing safe, legitimate ways to spread holiday cheer.

To see more articles like this delivered to your inbox, subscribe to our First Scoop Blog.

Don’t Fall Victim to Task Scams

Posted on by
Reply

In today’s digital world, scams are constantly evolving and one of the newest schemes gaining traction online is known as a “task scam.” These scams often appear innocent at first, offering quick and easy ways to make money from your phone or laptop. But behind the promise of fast cash, lies a setup designed to steal your personal information or your hard-earned money.

At First Financial, your financial security is our top priority. Here’s what you need to know about how task scams work and how to protect yourself.

What is a Task Scam?

A task scam occurs when someone contacts you, often through social media platforms, messaging apps, or online job boards – offering to pay you for completing simple online “tasks.” These might include:

  • Liking or following social media pages.
  • Writing fake product reviews.
  • Rating services or apps you never actually used.
  • Boosting a company’s “online reputation.”

Scammers usually start by sending you a small payment to gain your trust. Once you’re convinced the opportunity is legitimate, they may ask you to “unlock higher commissions” by paying a small fee or completing more tasks that require personal information or banking details.

Unfortunately, once you send the payment or share sensitive information – the scammer will disappear and your money (and sometimes sensitive data) may be gone.

For more details on how these scams work, the Federal Trade Commission (FTC) recently published an alert on How to Spot and Avoid Task Scams. It’s a great resource for learning how scammers operate and what red flags to watch out for.

Common Red Flags of a Task Scam

Be cautious if you notice any of these warning signs:

  1. You’re contacted out of the blue by someone offering easy money for simple online work.
  2. You’re asked to pay a fee or make a deposit before receiving more tasks or a larger payout.
  3. The company has no verified website or contact information.
  4. Payments come through gift cards, crypto, or unfamiliar apps.
  5. You’re asked to share banking or personal details to receive payment.

If it sounds too good to be true, it most likely is.

How to Protect Yourself

  • Research the company or contact. Look up names, email addresses, and websites before engaging.
  • Never pay to get paid. Legitimate employers will never ask you to send money to start earning.
  • Avoid sharing personal information. Do not provide bank account or credit card details.
  • Be cautious on social media. Scammers often use fake profiles and impersonate real companies.
  • Report suspicious activity. If you think you’ve been targeted, contact your financial institution right away. You can also report scams directly to the FTC at https://reportfraud.ftc.gov/.

What to Do If You’ve Been Scammed

If you believe you’ve sent money or information to a scammer:

  1. Contact your financial institution immediately. Your bank or credit union can help secure your accounts and prevent further loss.
  2. Change your passwords. Protect your email, banking, and social media accounts.
  3. Report the scam. Notify the FTC and your local authorities.

Taking quick action can minimize damage and protect others from becoming victims.

We’re Here to Help

Your online safety matters. We’re committed to helping our members protect their finances. If you ever receive a suspicious message or request involving one of your First Financial accounts, please contact us. Our team can help you verify legitimate communications, secure your accounts, and guide you through reporting fraud safely.

Stay up to date on the latest in scams by subscribing to our First Scoop Blog, and following along with our Important Alerts and Scams articles.

Calls About a Loan You Never Applied For? What to Know

Posted on by
Reply

Have you recently received a call (or many) claiming you have a pending loan application you never submitted? You’re not alone. Many consumers have reported getting these types of calls and while they might sound legitimate, they’re often a sign of a scam or an unethical sales tactic.

What’s Really Going On

If you’re getting calls about loans you never applied for, it’s usually one of two things:

  1. A scammer attempting to steal your personal information. These callers may say they need to “verify your identity” or “finish your loan application,” and ask for sensitive information like your Social Security Number, bank account details, or date of birth. Once shared, that information can be used to commit identity theft or fraud in your name.
  2. A high-pressure sales pitch from a questionable lender. Some companies use aggressive marketing tactics to contact consumers who never inquired about a loan, hoping to push them into accepting an offer on the spot. They may use phrases like “you’ve been preapproved” or “your loan is ready for funding,” to create a false sense of urgency.

Red Flags to Watch Out For

Be cautious if the caller:

  • Asks for personal information over the phone, especially if it’s out of the blue and you haven’t applied for any loans.
  • Pressures you to act immediately or threatens penalties for “not completing” your loan application.
  • Claims to represent a well-known lender, but can’t provide clear verification.
  • Uses generic or suspicious contact information (such as a Gmail address or a masked phone number).

What to Do if You Get One of These Calls

  • Hang up and don’t share personal information. Never confirm your identity or provide sensitive details, unless you initiated the call to a lender you are working with on a known loan application.
  • Verify directly with your financial institution. If you’re unsure, call your bank or credit union using a verified number from their website.
  • Report the scam. You can file a complaint with the Federal Trade Commission (FTC) at reportfraud.ftc.gov or your state’s consumer protection office.
  • Monitor your credit reports. Check your reports regularly for new accounts or inquiries you don’t recognize. You can do this for free at annualcreditreport.com.

Protect Yourself with a Trusted Lender

When you need a loan, always work with a reputable financial institution that prioritizes your safety and privacy. At First Financial, we’ll never contact you out of the blue asking for personal information or pressure you about a loan you didn’t apply for. Our team takes fraud prevention seriously and is here to help you navigate your financial needs with confidence.

Stay informed. Stay secure. And remember, when it comes to unexpected loan calls – it’s always better to hang up and dial your trusted lender directly, than to hand over your personal or financial information to a fraudster.

If you’re ever unsure about a loan offer or you’d like to explore legitimate borrowing options, visit us at firstffcu.com or contact our team directly. Keep Thinking First!

Unemployment Scams: How to Protect Yourself

Posted on by
Reply

Unemployment benefits are meant to help people without a job during tough times. Unfortunately, scammers have been known to sometimes take advantage of the system by filing for these benefits using someone else’s personal information. Even if you never applied for unemployment, you could suddenly receive benefits notices, tax forms, or even payments tied to your identity. That’s a big red flag. Keep reading to learn how to spot an unemployment scam and ways you can protect yourself and your finances.

How to Spot an Unemployment Scam

There are often a few telltale signs something isn’t right. If you applied for unemployment, you might find that your application was denied because someone already filed under your name, or that your benefits were approved – but the money never arrived.

If you didn’t apply, you may receive letters from the state unemployment office, a notice from your employer that someone used your identity, or even a 1099-G tax form showing unemployment income you never received. In some cases, money may even show up in your bank account, followed by a call from someone claiming it was a mistake.

Why This Matters

Unemployment scams often lead to bigger problems. Identity thieves may use your personal details to commit other types of fraud, damage your credit, or create headaches at tax time. If you do ever need unemployment benefits in the future, your claim could also be delayed or denied.

How to Protect Yourself

To avoid an unemployment scam from happening to you:

  • Only share sensitive information like your Social Security Number or bank details through official, trusted channels.
  • Always file for unemployment directly through your state’s unemployment agency website.
  • Monitor your credit reports for suspicious activity and consider freezing your credit if you suspect fraud.
  • Watch for IRS forms that don’t match your situation, such as a 1099-G for benefits you didn’t receive.
  • Report suspicious activity right away to your state unemployment office, your employer, and the FTC.

First Financial is Here for You

At First Financial, we take your security seriously. Our team works around the clock to protect our members’ accounts, monitor unusual activity, and provide resources if you think you’ve been a victim of fraud. If you ever suspect an unemployment scam or identity theft regarding one of your First Financial accounts, reach out to us immediately – we’re always here to help safeguard your finances.

Stay up to date on the latest in scams by subscribing to our First Scoop Blog, and following along with our Important Alerts and Scams articles.

How to Detect and Prevent Power of Attorney Fraud

Posted on by
Reply

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

Posted on by
Reply

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.