Consumer Alerts

March 2008 - Advance Fee Loan Scams - The Federal Deposit Insurance Corporation (FDIC) is reminding consumers and financial institutions to be aware of advance fee loan scams.

The following are warning signs that may indicate a loan offer is not legitimate:

· The loan approval is 'guaranteed.' Lenders do not typically guarantee loans before analyzing the applicant's financial condition, credit history and ability to repay.

·The loan applicant is required to pay upfront fees to a third party or individual. Loan fees are normally paid to a business after the loan has been approved.

·The lender or loan processor may be located outside of the United States.

·Fees are requested using a retail wire transfer system.

For more information access FDIC Special Alerts at www.fdic.gov/news/news/SpecialAlert/2008/index.html

Con artists know that people trust the FDIC name. That's why they may use FDIC name and seal in fraudulent e-mails trying to obtain valuable information from consumers and businesses. These types of scams are commonly referred to as "phishing." Con artists use fake Web sites and e-mails to obtain valuable personal information from consumers. The FDIC does not send out unsolicited e-mails or ask for detailed personal information. Additionally, the FDIC does not ask people for the PIN numbers, passwords or similar secret access information for their credit card, bank or other financial accounts. If you get this sort of e-mail appearing to be from the FDIC, you should assume that it is fraudulent.

To report a fraud, send an e-mail to the FDIC financial crimes unit at alert@fdic.gov or call the FDIC toll-free at 1-877-ASK-FDIC (1-877-275-3342).

Fraud Protection Tips for Consumers

Reconcile your statement each month and check for unauthorized transactions. Report any suspicious inquiries or unauthorized account transactions to your bank immediately. Never give out your checking account number unless it is a call you have initiated. Reveal checking account information only to businesses you know to be reputable. Shred or tear-up canceled checks and deposit slips before discarding them. Notify your bank if you don’t receive your checks in a reasonable amount of time. Use dark ink, never light colors or pencil that can be easily erased or covered. Don’t leave blank spaces on the payee or amount lines.