Author Archives: VP of Marketing and Business Development Jessica

Easy Money or Money Mule?

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

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

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

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

Protecting Yourself from Money Mule Scams

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

Follow These Tips to Avoid Becoming a Money Mule

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

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

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

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

Holiday Preparation Tips for Small Business Success

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The holiday season is a crucial time for small businesses, offering immense potential for growth and customer engagement. Effective preparation is key to harnessing this opportunity. Here are some holiday business preparation tips to ensure your small business stands out and flourishes during this bustling season.

Strategic Planning for the Holidays

Strategic planning sits at the heart of successful holiday business preparation. It’s essential to analyze your market, understand competitor strategies, and find unique ways to distinguish your business. This could involve special promotions, events, or exclusive offers designed to draw customers to your location. Selecting the right sales strategies – such as discounts or holiday bundles, can significantly impact your seasonal success.

Enhancing Your Digital Presence

It’s no secret that these days, your online presence can make or break your holiday success. Ensuring your website is user-friendly and ready for increased holiday traffic is vital. Equally important is leveraging the power of social media. Regular posts and engagement on platforms like Instagram or Facebook can drive brand awareness, help with new customer discovery, and boost sales.

Inventory and Supply Chain Management

Effective inventory management is a crucial aspect of holiday business preparation. Review past sales data or industry trends to estimate the amount of stock you’ll need. This approach isn’t just about product quantity; it also involves ensuring you have all the necessary supplies to maintain smooth operations during the holiday rush.

Creating a Festive Shopping Experience

The holidays are synonymous with festivity, and creating a holiday-themed environment can attract more customers. If you have a storefront, consider decorating it and adding seasonal touches to enhance the holiday shopping experience. Collaborating with other local businesses for broader community decorations can also create a more immersive holiday atmosphere.

Preparing for Staffing Needs

Anticipate potential labor shortages typical of the holiday season. Planning ahead might mean hiring seasonal employees to ensure you have enough hands on deck. Training seasonal staff in various roles not only provides operational flexibility, but also ensures a high-quality customer service experience.

Financial Planning for the Holiday Season

Financial preparedness is a critical component of holiday business preparation. Exploring financial solutions like small business loans can help manage cash flow and cover expenses. Being financially equipped is crucial for a seamless holiday operation.

The holiday season presents a fantastic opportunity for small businesses to showcase their unique offerings and attract a wider customer base. Remember, it’s about creating an unforgettable shopping experience and quality products or services that keep customers coming back. First Financial is here to support your business every step of the way during this busy period. To learn more about business banking with First Financial, email business@firstffcu.com, call 732-312-1500 or visit one of our branches.

Don’t forget this upcoming Saturday, November 25th is Small Business Saturday. Be sure to support small business in your community and shop local!

Signs You’ve Been a Victim of Identity Theft

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In today’s digital world, where personal information is frequently shared online, the threat of identity theft looms large. First Financial is committed to helping you recognize the warning signs of identity theft and take appropriate action. Understanding these signs is crucial for protecting your financial well-being and ensuring peace of mind.

Spotting the Warning Signs

Recognizing identity theft requires vigilance and an understanding of several key indicators. Unrecognized transactions on your bank or credit card statements are often the first hint of identity theft. These transactions might be small at first, but they can quickly escalate. Equally important is keeping an eye on your credit report for any inquiries that you don’t recall initiating. This could indicate someone attempting to open accounts in your name. You can check your credit report for free once a year at annualcreditreport.com.

Another sign to be wary of is receiving unfamiliar bills or statements, or conversely – not receiving the bills or statements you are expecting. This can suggest that someone has gained access to your account information and is redirecting your mail. A sudden, unexplained drop in your credit score is another red flag. It can indicate that fraudulent activities are negatively impacting your credit history.

Unexpected denials of credit or loan applications can also signal identity theft. If your applications are being denied and you don’t know why it could be due to a compromised credit history. Additionally, receiving calls from debt collectors about debt that you don’t recognize is a classic symptom of identity theft. Lastly, unusual activity on your Social Security account – such as unfamiliar earnings reports, should also raise concern.

Confirming and Responding to Identity Theft

If you suspect you’ve been a victim of identity theft, there are several steps you should take to confirm and address the issue. Begin by thoroughly reviewing all of your financial statements and accounts for any unauthorized transactions. This includes checking your credit report from the major bureaus for any unfamiliar activities or discrepancies.

If you find evidence of identity theft, it’s important to report it immediately. Contact your financial institution, credit card companies, and the credit bureaus to inform them of the suspected theft. You should also file a report with the Federal Trade Commission (FTC), which will provide you with a recovery plan.

Taking preventative measures like placing a fraud alert or a credit freeze on your accounts can help prevent further damage. This restricts access to your credit report, making it more difficult for identity thieves to open new accounts in your name. Finally, updating the security of your accounts – such as changing passwords and PINs, is crucial in safeguarding your financial information.

At First Financial, we understand the importance of protecting your personal and financial information. Being aware of the signs of identity theft and knowing how to effectively respond is essential in safeguarding yourself against these risks. By recognizing the signs early and taking prompt action, you can significantly mitigate the effects of identity theft. Stay informed and protected, talk to a representative at 732.312.1500 or visit any of our branches today.

Common Reasons for Drops in Your Credit Score

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When it comes to personal finance, one of the most pivotal benchmarks is your credit score. This three-digit number is the barometer lenders use to gauge your creditworthiness. It’s a quantified assessment of your ability to repay debts, and it can fluctuate for a variety of reasons. Understanding these fluctuations, especially what causes a drop in credit score – is essential for financial stability and agility.

Late or Missed Payments

One of the most significant contributors to a drop in credit score is late or missed payments on your credit card. Your payment history carries considerable weight in credit score calculations, and even a single missed payment can negatively affect your score. It’s imperative to stay on top of your payments. If you’ve missed a payment, don’t panic. Instead, set up automatic payments to prevent future lapses and regularly review your credit report to ensure all payment information is accurate and up to date.

High Credit Utilization

Another reason for a drop in your credit score can be high credit utilization. Experts recommend keeping your credit utilization—the percentage of your credit limit that you use, below 30%. High utilization can signal to creditors that you’re over-reliant on credit, and reducing your balances can help mitigate the impact on your score. Remember, the goal is to demonstrate that you can manage credit responsibly.

Decreased Credit Limits

Sometimes, a drop in credit score is due to a lower credit limit. This can unexpectedly increase your credit utilization ratio. If you find your limit reduced, contact your credit issuer to discuss why it happened and whether it can be restored – especially if you haven’t changed your spending habits.

New Credit Applications

Applying for new credit can also result in a drop in your credit score due to inquiries from lenders. While one application might not cause a significant change, multiple applications within a short timeframe can be problematic. Be strategic about when and how often you apply for new credit to minimize the impact on your score.

Closing Credit Accounts

Closing credit accounts might seem like a positive step, but it can actually lead to a drop in your credit score. This can shorten your average credit history and potentially increase your credit utilization ratio. Sometimes the long-term benefits of closing an account outweigh the short-term impact on your score. Ultimately, you’ll need to decide which is right for your particular financial scenario. It’s often best to pay off these credit accounts, and just stop using them – rather than closing them out completely.

Major Financial Events

Major negative financial events such as bankruptcy or foreclosure, have profound effects on your credit score. These incidents can stay on your credit report for years, so it’s important to manage debt wisely and seek assistance before such events occur.

Inaccurate Information

At times, a drop in credit score could be due to errors on your credit report. Regular checks of your credit report can help you spot and address inaccuracies quickly. Whether it’s a misreported payment or incorrect personal information, it’s within your rights to dispute these errors and have them corrected.

Identity Theft

Lastly, identity theft can cause a significant and unexpected drop in your credit score. Monitoring your credit can alert you to potential fraud, and if you suspect identity theft – immediately placing a fraud alert or credit freeze can prevent further damage to your score. Brush up on what to do in this situation ahead of time so you’re prepared if this ever happens to you.

Maintaining a robust credit score is an ongoing process. By understanding the common causes that can trigger a drop in credit score, you’ll be better prepared to protect and improve your credit standing. Always remember that each aspect of your credit history is a piece of a larger financial puzzle.

For more information on managing your credit and to set-up an appointment at one of our branches, contact us at 732-312-1500. Stay on top of your financial health by subscribing to First Financial’s monthly newsletter or check out our handy guide on credit management.

Money Moves to Make This November

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November, often signifying the year’s closing – brings with it the start of the holiday season. While the excitement of festivity and preparations for family gatherings are at the forefront, it’s important not to lose sight of our financial commitments and goals. As you prepare for Thanksgiving and the upcoming holidays, also prioritize your financial health to ensure a smart start to 2024.

November’s Financial Focus

November isn’t just about preparing for the holidays. Some experts note this time of year as the most apt to evaluate and strengthen your financial status. As we near the end of 2023, consider where your money is going and how you can optimize its growth and security.

Budget Evaluation

Reflect on your journey and the goals you set for the past year. Did you reach any finish lines? Even if unexpected life events nudged you off course, understand that it’s a natural part of life’s rhythm. Making changes to a set plan isn’t indicative of failure, but instead of adaptability. Life is ever-evolving, and your financial strategies should be as well.

Boosting Your Emergency Fund

Now is an opportune moment to replenish or boost your emergency stash. A sound financial cushion, covering at least three months of essentials – can be a lifesaver in unpredictable times. Not only does this help you wrap up the year on a positive note, it also prepares you for whatever 2024 has in store.

Holiday Spending Strategy

The allure of the holiday season often leads to impromptu expenses. By preparing a precise budget for gatherings and gifts, you’re safeguarding yourself against impulse purchases. Prioritize staying on budget, and keep in mind that your overarching goal is to step into the new year debt-free.

Smart Shopping in November

Retail sales can sometimes be deceptive. To guarantee you’re scoring genuine deals, lean on digital tools. Price alert tools and comparison apps or browser extensions can be indispensable for smart shopping. Though Black Friday and Cyber Monday steal the limelight, November is sprinkled with numerous other discount opportunities.

Charitable Contributions

The holiday season often goes hand-in-hand with charitable giving. If you’re considering making donations, now’s the time. Not only does it embody the spirit of giving, but it also paves the way for potential tax write-offs. Examine potential charities with tools like Charity Navigator, ensuring your contribution makes a genuine impact.

Medical Considerations

November is often less hectic for medical professionals, making it a strategic month for appointments. If you have funds tucked away in a medical flexible-spending account (FSA), consider using them before they lapse. For those with Health Spending Accounts (HSAs), there’s less urgency – as these funds should seamlessly roll over into 2024.

Benefits Checks and Balances

As we wind down the year, it’s pivotal to review your 401(k) and other benefits contributions. If you haven’t maxed out, consider upping your contributions. For those over 70½ with funds in traditional 401(k)s or IRAs, be mindful of the Required Minimum Distributions (RMD). The financial advisors located at First Financial are here for our members, and can help you answer these types of questions as the year starts to wind down.*

November is a pivotal month to be financially diligent. With a balanced approach, you can celebrate the holidays while ensuring a financially sound new year. As the holidays unfold, the First Financial team is here to assist you in your financial management. Reach out to us at 732.312.1500 or visit any of our branches.

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*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: