January 14, 2002 News Archive

FYI--419 Scam/Nigerian Letter Fraud
by Deanna Jackovich

You have all probably heard, at one time or another, about Nigerian Fraud letters--they have been around for years. According to Suspicious Activity Report (SAR) records, instances of the 419 Scam, or Nigerian advanced fee fraud, have been increasing. The bank account solicitation letters/emails coming from Nigeria, South Africa and Ghana are typically directed to bank officials and/or specific customers. Within our district, banks have noted receipt of similar letters. Additionally, other regulatory agencies and the FBI attest to an increase in this type of fraud within our district.

If an institution, or its customer, has been victimized by one of these schemes, they should contact the USSS Financial Crimes Division at (202) 406-5850. If a letter was received, but no monies were lost to the scheme, a copy of the letter should be faxed to (202) 406-5031. For additional information regarding the 419 Scam or Nigerian Letter fraud, visit the United States Secret Service site. For questions please contact Deanna Jackovich at 312-322-5097.

FFIEC Publishes Third Quarter 2001 Country Exposure Report
The Federal Financial Institutions Examination Council (FFIEC) released the September 30, 2001 statistical results of the country exposure lending survey, which details transfer risk claims on foreign borrowers held by U.S. banks. Claims on borrowers from developed countries generally represent over two-thirds of all claims. At the end of the third quarter claims on borrowers from Latin America and the Caribbean represented 13.1% of all claims. Claims from Argentina totaled $10.3 billion at the end of Q3 '01, down 13.6% from $11.9 billion in Q3 '00. Claims from Eastern Europe, Asia and Africa were minimal.

Claims from countries under 7th District responsibility increased except for Finland and Norway. Claims on Canadian borrowers, in particular, rose 62 percent over the past 12 months. Exposure to Canada and the Netherlands were approximately 5% of total transfer risk claims and the aggregate claims from the Nordic countries (Denmark, Finland, Norway, and Sweden) represented 4%.

Please contact Dave Lingo at (312) 322-4738 for additional information on transfer risk claims and the lending survey.

Board Names New Members of Consumer Advisory Council
The Federal Reserve Board issued a press release naming eleven new members to its Consumer Advisory Council for three-year terms and designated Dorothy Broadman as new Chair and Ronald Reiter as Vice Chair of the Council for 2002. Council members from Illinois are Robin Coffey of Harris Trust and Savings Bank and Thomas P. FitzGibbon, Jr., of MB Financial Bank , N.A. The Council advises the Board on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters in the area of consumer financial services.