Ohio Bankers Association and Attorney General Warn Consumers about Telemarketing Scam Targeting Consumers’ Bank Accounts

Columbus – A scam that plays on consumers’ fears of the Y2K bug is circulating across the country and Ohio, the Ohio Bankers Association (OBA) and Attorney General Betty D. Montgomery warned today.

"Scam artists will do anything to make a quick buck, and this scam can cost consumers thousands of dollars in the blink of an eye," Montgomery said. "The financial mess left behind can be devastating for consumers and their families."

The scam works like this: A consumer receives a phone call from a caller posing as a bank representative. The caller tells the consumer that the bank is having difficulty meeting the requirements to be computer ready for Y2K. As a safety measure, the consumer is told he needs to transfer all accounts to special "bond" accounts or a "safe haven" until the bank is able to achieve full compliance. The consumer is then asked to "confirm" bank account numbers and grant verbal permission to make the transfer. In reality, the money is transferred directly into the account of the scam artist.

"We know of no legitimate reason for consumers to move funds to a ‘safe haven’ or special ‘bond’ account as suggested by these scam artists," said OBA Executive Vice President Michael M. Van Buskirk. "The fact is, Ohio banks have been hard at work for several years addressing the Year 2000 issue and will be well prepared for a smooth transition into the next millennium."

The experts agree. In a report to the U.S. Senate, the special committee on the Year 2000 problem noted that the financial services sector ranks ahead of nearly all other industries in its remediation and testing efforts. Federal regulators tracking compliance among financial institutions, reported that 95 percent have received satisfactory government ratings.

To learn what a specific bank is doing to prepare for the Year 2000, the OBA encourages consumers to reference the bank’s most recent annual report, log on to the bank’s web site, or simply ask their banker. The information should be readily available.

Montgomery urges consumers who encounter this or any other telemarketing scam to contact her Consumer Protection Hotline at 1-800-282-0515, or online at www.ag.state.oh.us.

FBI National Press Office

January 11, 1999 -- More than one million persons attempted to obtain firearms during the first 41 days of the new National Instant Criminal Background Check System (NICS), the Federal Bureau of Investigation said today.

NICS was created by Congress in the Brady Act to prevent handguns, rifles, and shotguns from being purchased by convicted felons, wanted persons, illegal aliens, and the mentally ill.

Of the checks conducted by the FBI, 11,584 transfers of firearms were denied by the Bureau because of disqualifying provisions of the Act. Most of the denials were to convicted felons.