The Federal Deposit Insurance Corp. is getting numerous reports of bogus emails warning people that they need to visit the FDIC website and report various information if they want to get their money back when/if their bank fails.

This is 100 percent baloney. The website link in the email is bogus, and if you follow the email’s instructions you’re guaranteed to regret it.

I can personally testify that if you do have deposits in a bank that fails, you don’t need to do a thing. (I had a CD in a Colorado bank that went down. All my money was safe.)

Your deposit will likely just transfer to an acquiring bank, unless your deposit is over the $250,000 limit. Mine never is. Not even close.

In any event, the FDIC doesn’t send out emails to depositors. Duh.

Here’s the important portion of their press release:

The Federal Deposit Insurance Corporation (FDIC) has become aware of e-mails appearing to be sent from the FDIC that are asking recipients to download and open a “personal FDIC insurance file” to check their deposit insurance coverage. These e-mails are fraudulent and were not sent by the FDIC. The FDIC is attempting to identify the source of the e-mails and disrupt the transmission.

The e-mails ask recipients to “visit the official FDIC website” by clicking on a hyperlink provided, which appears to be related to the FDIC and directs recipients to a fraudulent Web site. The Web site includes hyperlinks that appear to open forms. However, it is believed that clicking on the hyperlinks will cause an unknown executable file to be downloaded. While the FDIC is working with the United States Computer Emergency Readiness Team (US-CERT) to determine the exact effects of the executable file, recipients should consider the intent of the software as a malicious attempt to collect personal or confidential information, some of which may be used to gain unauthorized access to online banking services or to conduct identity theft. Financial institutions and consumers should NOT access the Web site or download the executable files provided on the Web site.

The BBB provides this helpful summary of scams that seem to target the elderly, although many of them could work on anyone whose guard was down. There’s a lot of concern about scams that target the elderly, and rightfully so. But I’ve talked to scam victims of all ages over the years.

In the coming year I expect to hear more about bogus “census workers,” who are Number 3 on this list.

Some of these ploys have been chronicled on this blog before, but it never hurts to review:

DuPont, Wash. – Nov. 5, 2009 – Con artists cleverly borrow ’scheme themes’ from current events and news headlines to capture their victim’s attention. Senior citizens need to be particularly wary since scammers often target the elderly using the following topics:

1. Social Security Benefits – Posing as Social Security employees, these crooks attempt to verify Social Security or bank account numbers. They offer direct deposit, claim a malfunction in your record, or threaten to withhold benefits due to back-owed taxes. Be skeptical if you receive a call or visit from someone claiming to be from the government. Ask for full contact and identification information, then contact the real agency directly to verify their legitimacy. Contact SSA to report fraud.

2. Medicare or Medicaid – Scammers claiming Medicare or Medicaid affiliation may offer free or discounted medications, medical tests and treatments, or other perks in exchange for your confidential Medicare identification number or SSN. Don’t share your Medicare Health Insurance Claim Number or card with anyone, except your physician or other Medicare provider. Report Medicare fraud to the Office of the Inspector General: 1-800-447-8477 or HHSTips@oig.hhs.gov.

3. U.S. Census Workers - Legitimate Census Bureau workers and volunteers will ask American households for data and statistics, but will not request donations or collect payments. They will only be verifying consumers’ names, ages, addresses and other relevant demographics. If they arrive at your door, they should have: identification, a badge, and a confidentiality notice.

4. Economic stimulus and government grants – Recent economic stimulus packages have caused an outbreak of falsified letters and e-mails, Web sites, and phone calls promising government grant money to those who purchase a starter kit, software or membership program. There is no charge to collect economic stimulus money or apply for a government grant; research local grant programs on federal government Web sites: www.grants.gov, www.govbenefits.gov and www.sba.gov.

5. Grandparent or relative scam – Beware: A con artist may be preying on your emotions, impersonating a distressed family member. A loved one—usually “your favorite grandchild”—calls claiming to be stuck in with an emergency, car accident or false arrest, and needs money wired immediately. Be skeptical about wiring or transferring money without first confirming the situation is genuine. Ask specific personal questions, such as a birth date, family trivia or a favorite shared memory; or contact family members to confirm their whereabouts.

Another quiet day on the consumer blog–too busy helping out with the fire story. See you later. As always, feel free to comment on anything that pops into your heads.

It occurs to me that many of you might enjoy finding out what happened to your mortgage after you signed up for it. The Whatcom County Auditor now has many years of property transaction records viewable online, and if your mortgage has changed hands, that information will likely be filed there.

Go to the auditor’s home page — http://www.co.whatcom.wa.us/auditor/ — and in the column on the left, click “Recorded documents online.” Then click “agree.” You probably should read what you are agreeing to. If there’s anything important there, let me know…

Anyhow, once you click “agree,” you get to the “recorded document search” page. Again, look to your left and click “document search.”

The easiest way to look up your own property is via the tax parcel number. Click “parcel number” and enter that number, which you can find on your property tax bill or deed or whatever. If you don’t have your parcel number handy, you can also go to the assessor’s website, enter your address, and get it that way, but I’m too lazy busy to walk you through that process just now. If you can’t figure it out, let me know and I’ll try to help.

Don’t be tempted to just enter your own name on the auditor’s site. The sale of  your mortgage is NOT going to be indexed under your name, because YOU were not involved. And if you enter your bank’s name, you’re going to get hundreds of hits. You weren’t the only dude they lent money to.

Once you enter the parcel number, you can also limit the search to a specific time interval, but I don’t recommend that. You might miss something.

Anyhow, once you plug in that number and hit search, you’ll see a list of documents which you can open, save to your computer and/or print. If your mortgage is now part of a pool that pays bond investors, that information should be there.

Then, if you find that your mortgage is now owned by something like “GSAA Home Equity Trust 2007-4,” you can Google that. Among other things, you may be able to find out whether the trust is in any kind of legal/financial trouble. In this example–the subject of my Tuesday story–the Google search uncovered a class action lawsuit in federal court, an S&P report that predicted big losses for the trust’s investors, and an SEC filing that spelled out how many of the loans in the pool were “stated income.”

Probably none of this information is going to be really useful to you, but you may find it interesting. It may also explain why you’re having trouble working out a mortgage modification.

I’ve gotten a lot of favorable comment on my Tuesday sidebar about how bond investments, arranged by Goldman Sachs and other Wall Street titans, fueled the housing boom here, just as they did everywhere else.

I had to go over to Dean Kahn and apologize to him, because last Thursday, when Dean assigned me to do this story, I got all grumpy about it because I had a lot of other things to do and I didn’t see why a McClatchy News Service piece required a contribution from me.

But in the limited amout of time available, I used online resources that nobody dreamed about when I started in this business: county property records, federal court records, SEC filings, a Standard & Poors report,  and of course, Google, to help me find what I was looking for in all those places.  It just took a few minutes. Before the Internet, it would have taken weeks or months, which means it simply would not have happened.

I already knew about mortgage-backed bonds, and their role in the housing boom-and-bust that sent the world economy lurching close to the abyss. But tracing that one little Ferndale mortgage back to Goldman Sachs and beyond really helped to make it all real for me.

Do you remember when house prices were going to the stratosphere around here just a couple of years ago? Everybody knew it was caused by rich people moving up here from California, and by zoning that restricted the supply of buildable lots, and by this area’s fabulous quality of life.

But the real reason was the availability of mortgage money. Unprecedented numbers of people were able to qualify for loans, because lenders knew that bond-buyers were hungry for mortgage-backed securities. The lenders could, in effect, sell the loans to the bond buyers, who thought they were getting safe returns because people always make their mortgage payments. And even if they don’t, the price of homes always rises, meaning that the collateral on the loan gets more valuable over time if that borrower guy messes up. Nothing could go wrong.

The result: All those home-buyers used easy mortgage loans to bid up the price of real estate. Speculators saw the rising prices and jumped into the market too. Still other people saw the rise in value of their own homes and decided to cash in some of their equity. But then the great, roaring engine of paper wealth ran out of steam and the panic set in.

mostly because the blogs were out of operation for much of the day because of evil spirits. Now I’m enjoying pizza in the newsroom–an election night tradition–waiting for the polls to close and end the unbearable suspense of Indecision 2009.

But seriously, the results of the Port races that I’m covering are going to be interesting. It’s the first real referendum on years of planning and hemming and hawing on waterfront redevelopment. Are people happy with where the port and city are now? Or will the challengers tap into seething discontent? I have no idea, but I’ll know before bedtime.

I think I can eat one more slice.

Hope you had a fun Halloween. I’ve been looking for some consumer-related tidbits but have nothing for ya as of right now.

Tomorrow is Election Day. Have you filled out your ballot yet?

This AP story is out of Wisconsin, but there’s no reason to doubt that this happens everywhere. Admittedly it is less likely in Washington state, since our major teams don’t have big games. But still:

MILWAUKEE (AP) - The Wisconsin Better Business Bureau is warning football fans that big games such as this weekend’s Vikings-Packers game tend to invite ticket scams.

Already this season, one Packers fan paid $4,000 to an online seller for season tickets that never arrived. Last season, police found that counterfeit tickets for big games were sold near Lambeau Field.

The agency recommends the following precautions:

- Make sure tickets have a ‘Packers’ watermark on the back, perforated edges of the left and bottom, and ink that doesn’t smudge when moistened.

- If you buy tickets online, choose a seller with a long history of satisfied customers.

- Get the seller’s real name and contact information.

- Pay with credit card, check or Paypal, not cash.

Imagine a helicopter pilot school that goes from nothing to 34 branches and more than 2,000 students in six years. Students pay $69,000 tuition in exchange for a promise that they will graduate with a pilot’s license, an instructor’s license, and maybe even a job at the school itself–hmmm. I hesitate to use the word “pyramid” here.

Anyway, the school went broke back in February 2008. A lot of students paid their tuition but got nothing in return. Washington Attorney General Rob McKenna and colleagues in other states have worked out a deal that will enable those students to get most–but not all–of their money back. The press release:

Silver lining for former Silver State Helicopter students
Attorneys general negotiate settlement to partially erase student loan debt
SEATTLE – A year after Silver State Helicopters declared bankruptcy – leaving its former students with sky-high loan debt – a group of attorneys general has handed over a golden parachute.
“We can finally see the silver lining for Silver State Helicopters students who were left in the lurch,” Washington Attorney General Rob McKenna said.
Under an agreement with 12 states, Student Loan Xpress will forgive a total of $112.7 million in debt for students who obtained private educational loans to attend the defunct flight school.
The Washington Attorney General’s Office served on the executive committee that helped negotiate the agreement, which was reached in conjunction with a national private class action settlement also announced today. Washington will file its version of the agreement in the next few days in Thurston County Superior Court. The agreement doesn’t include a finding or admission of wrongdoing by Student Loan Xpress.
Silver State Helicopters began operating in 2002 as a small pilot training school near Las Vegas. At its zenith, it operated 34 flight schools nationwide with a total of 2,700 enrolled students.
From 2005 to 2007, Student Loan Xpress served as the preferred lender for students attending Silver State Helicopters, providing approximately $174 million to more than 2,300 people nationwide. When the school closed abruptly in February 2008, most students were left owing Student Loan Xpress serious money for training and certifications they never received.
More than 100 Washington students attended the flight school. The Washington Attorney General’s Office received 34 consumer complaints about the company last year, which show that many Silver State customers paid $69,900 each for the promise of earning a commercial pilot’s license and flight instructor rating. Students were often told that upon completion, they would be hired by Silver State itself.
Students alleged that the training provided by Silver State was inadequate, compounded by a lack of teachers, too few flight simulators and a lack of helicopters. As a result, many students dropped out.
The states’ settlement includes a provision that Student Loan Xpress forgive debt for students who are deemed eligible for relief and participate in a private, nationwide class-action settlement, Holman et al v. Student Loan Xpress, Inc., filed in federal court in Florida. Students who have question about the class-action settlement can contact settlementquestions@gmail.com.
Just over half of the students who enrolled never earned a certificate. Under the agreement, Student Loan Xpress will forgive 75 percent of the total amount borrowed by those students. Students who earned one or more certificates will also receive some relief. Students will still be required to make payments on the remaining loan balance.
The states’ agreement also precludes Student Loan Xpress from reporting negative information to credit-reporting agencies about students who failed to make payments on their loans prior to the settlement.
Student Loan Xpress must provide written disclosures to each prospective borrower whenever it acts as the exclusive private loan provider for students of a private post-secondary, trade or vocational institution not certified or accredited by state or federal authorities. Those disclosures must state that the loans do not constitute an endorsement of the school, its principals or the quality of training.
AGO NEWS: Silver lining for former Silver State Helicopter students

Here’s another variant of the “wire me some money” scam. The target was Jake’s Western Grill in Lynden. But owner Brian Poag didn’t let the chance for a big order make him blind.  Information provided by publicist Dave Brumbaugh:

Brian Poag, owner of Jake’s Western Grill at 8114 Guide Meridian, said a person contacted his restaurant about catering an event for 200 people. The person said he was handicapped and needed to communicate through a third party.
The “third party” communicated by e-mail, saying the barbecued pork sandwiches and baked beans should be packed by Jake’s Western Grill in individual containers and would be picked up by a private shipper. But Poag recognized the scam attempt when he was asked to charge an additional $1,500 to the person’s credit card and wire the $1,500 to him, allegedly so other bills could be easily paid.
“The scammers probably thought a large order would entice us to bypass some basic precautions in how we do business, particularly with a new customer,” Poag said. “We immediately ended communication with them and informed the Lynden Police Department.”
Poag said he wants other local businesses to be aware of scams like this. “We need to share information so we don’t become victims, particularly in these economic times,” Poag said. (end of press release)

Maybe most of you have already memorized my easy-to-remember guide for wiring money to strangers: DON’T DO IT.