Alert March 25, 2008

FDIC Issues Alert on Advance Fee Loan Scams

The FDIC issued a special alert to the banks it supervises, warning of advance fee loan scams. The FDIC has observed a significant increase in the number of unsolicited e-mails advertising mortgage refinancing, debt consolidation and elimination, small business loans, and special loan programs for veterans and minorities. While some of these e-mails may advertise legitimate loan programs and lenders, the FDIC reports that advance fee loan scams are becoming more prevalent. The FDIC cautions that fraudulent logos and letterhead of legitimate financial institutions or government agencies may appear on documents that are faxed to the loan applicant. Click here for a copy of the special alert.