FED warns US consumers about loan scam

WASHINGTON, DC - The Federal Reserve Board has alerted US consumers to the "questionable solicitations" of fraudsters promising personal loans through a non-existent Federal Reserve lending programme. The fraud allegedly targets individuals who are told they can work through a broker to access a Fed-run programme that extends large secured loans to consumers. Members of the public are then encouraged to deposit personal funds into a bank account as a security deposit to receive the loan.

The Federal Reserve has reminded consumers that it does not directly sponsor consumer lending and strongly urges people to verify the legitimacy of loan providers before entering into a transaction.