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Special Reports
Mortgage Fraud: Protecting
The Investment
NY Warning Issued on Possible ID Theft Scam
NEW YORK -- A mortgage-related company calling itself First Rate Credit Union
is believed to be a front for an identity theft scam, according to a consumer alert has been issued by the New
York State Banking Department. The alert is similar to one issued last fall by the Michigan Office of Financial
and Insurance Services.
Over the last six months, the department said deceitful advertisements were placed
in newspapers in California, Colorado, Iowa, Missouri, Ohio, Pennsylvania, Rhode Island and Washington state by
an entity or person representing the company.
In the advertisements, the company, which is not a licensed credit union, targeted
customers with credit problems, offering to help them get home mortgage loans. Consumers were asked to call a toll-free
number and speak to a consultant.
The ads are now being described as merely a ploy to lure consumers into giving
personal financial information for a nonexistent loan application that is in turn used to steal the consumers'
money and assets through electronic means, according to the department.
"In many of these states, consumers listed all of their personal information.
Their Social Security number, phone number - information someone can use to steal your identity," said Bethany
Blankley, a spokesperson for the department.
"The ads were placed in specific markets. The company also offered auto loans,
personal loans and debt consolidation loans."
According to Ms. Blankley, this scam is driven by advertisements giving an address
in Middletown, N.Y. Not only is there no such credit union at this location, there is no credit union by this name
chartered in New York State, or any other state or the federal government.
It is not insured by the National Credit Union Administration, the federal agency
responsible for chartered, regulating and insuring deposits.
"We went to the location in Middletown. Turns out, it is a private residence,
who had no clue their address was being used for these advertisements," Ms. Blankley said. "The phone
number given was a prepaid cell phone or something re-routed to or through Canada."
The New York State Banking Department is not aware of any New Yorkers who may
have been defrauded. It is urging all media in New York State to not place any ads from First Rate Credit Union.
Anyone who has responded to a solicitation from the company or spotted one of
their advertisements should call the department's Criminal Investigations Bureau. Consumers who have contacted
them are also encouraged to contact the NCUA's fraud hotline.
No public listings could be found for First Rate Credit Union at press time.
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