Fraudulent Ads Using Official Financial Institution Logos
The Federal Deposit Insurance Corporation (FDIC) warns of frauds using official financial
institution logos in newspaper ads. The scam begins with a fraudulent ad for mortgage, small business, debt
consolidation or other loans placed in smaller-market or community newspapers. The phone numbers in the ads are
for prepaid cell phones. The consumer (victim) provides application information, including his or her Social Security
number, over the phone to a "third-party consultant" and is told that a loan is "granted." A loan package is faxed to
the victim and includes a request for bank account and other personal information. The victim is asked to make an
advance payment or deposit before the loan is advanced by wire transfer. The deposit is wired to the "third-party
consultant." Basically, the consumer in this scheme does not obtain a loan; rather, this is a method to obtain
advance payments from the victim. Read more...
