E-Mail on Bank Failure is Likely From Scammers, FDIC Warns

By George Hesselberg, The Wisconsin State Journal

Oct. 30--Phishing expeditions for bank customers' accounts have become more sophisticated, a federal agency and state bank association warned Thursday.

"The state just had a bank failure in Racine, and these are the types of scams that play on the fears of bank customers," said Daryll Lund, of the Wisconsin Community Bankers Association.

The Federal Deposit Insurance Corp. warned of fraudulent e-mails that appear to be sent from the FDIC that ask recipients to download and open a "personal FDIC insurance file" to check their deposit insurance coverage. The subject line of the e-mail includes the wording "check your Bank Deposit Insurance Coverage."

According to the FDIC, the e-mails state: "You have received this message because you are a holder of a FDIC-insured bank account. Recently FDIC has officially named the bank you have opened your account with as a failed bank, thus, taking control of its assets."

The e-mails ask recipients to "visit the official FDIC web-site" by clicking on a link that appears to be related to the FDIC but directs recipients to a fraudulent Web site. Links on that site that appear to open forms actually are believed to cause unknown software to be downloaded.

The intent, the FDIC says, is "a malicious attempt to collect personal and confidential information" that is used to access online banking services or conduct identity thefts.

The FDIC repeats the obvious: Don't go to that Web site.

Lund said when bank failures, such as the Racine event last week, are in the headlines, banking officials hear from consumers about this type of fraud.

"They say you have to apply for FDIC coverage, and it plays on a customer's fears of bank closings," he said.

"No bank is going to send you something asking for your account information in this way, and if there is any question, just call the bank to check rather than replying to an unsolicited e-mail or telephone call."

The Bank of Elmwood, Racine, was closed Friday and the FDIC was named receiver. The FDIC agreed to sell to the Tri City National Bank of Oak Creek.

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Copyright (c) 2009, The Wisconsin State Journal

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