Fed issues warning on bogus consumer loan program
Tuesday, November 4, 2008
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The U.S. Federal Reserve Board warned Tuesday that people seeking loans are being enticed with fraudulent promises of access to a non-existent Fed facility.
The Fed reported instances of questionable solicitations directed at consumers that promise access to personal loans through a Federal Reserve lending program that doesn't exist.
Under this fraudulent scheme, targeted individuals are told that that they can work through a broker to access a Federal Reserve program that extends sizable secured loans to consumers. Consumers are encouraged to deposit large sums of money into a bank account, under the guise of a security deposit, in order to receive the purported loan, the Fed said.
The Fed warns that it does not directly sponsor consumer lending programs, and has no involvement in these solicitations. The matter has been referred to the appropriate authorities for action, it reports.
IE
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