FDIC Phishing Scam Strikes More Banks

Iowa Bank Customers Hit in Latest Flurry
FDIC Phishing Scam Strikes More Banks
For the second time in recent months, bank customers have been sent phishing emails purporting to be from the Federal Deposit Insurance Corp. (FDIC).

Residents in Palo Alto County, IA area have been warned by their banks of the email scam. The FDIC also on Thursday sent out an alert about the scam to all security officers.

The e-mail claims that the financial institution is on a list of banks that are "failing" and that the FDIC is taking control of that institution's assets. The e-mail then instructs the recipient to click on a link that supposedly takes the recipient to the FDIC website, when in reality the website is actually fake. When recipients click on the fake FDIC website, they are prompted to enter sensitive information such as account numbers for checking and savings accounts.

This latest alert comes after a similar phishing attack was reported against banking customers in late October, asking recipients to check the amount of insurance their bank had with the FDIC's Deposit Insurance Fund.

"The criminals, knowing that people trust the FDIC name, have duplicated the official logo and seal in fraudulent letters, forms, certificates and other correspondence," according to the FDIC alert. "In some cases, recipients were asked to complete fraudulent forms and return them by fax or e-mail. In other cases, recipients were asked to remit funds via check or wire transfer service."

The FDIC says institutions are encouraged to inform customers that fraud artists may use the names of the FDIC and other government agencies and to take appropriate precautions.

About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.

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