RIYADH, 4 November 2005 — The US Embassy has warned Saudi businessmen about a major scam, which can result in huge financial losses if necessary precautionary measures are not taken. The embassy has learned that a letter, allegedly from the Federal Deposit Insurance Corporation (FDIC) of the United States and signed by Robert Smith, is being faxed to Saudi business owners.
“The letter, which asks for detailed personal and business information such as bank account numbers, is a hoax and is not from the FDIC or any other official entity of the US government,” said a statement released by the US Embassy yesterday.
The embassy believes the letter is a part of a scam to conduct fraud and identity theft. The US government and US financial institutions never request financial or personal information via unsolicited e-mail, fax, phone or letters.
As a safety measure, the embassy has recommended that whenever individuals receive requests for their financial details or sensitive information, they should contact the requesting organization before disclosing it.
The FDIC was set up to promote public confidence in the US financial system by insuring deposits in banks and thrift institutions for up to $100,000 by identifying, monitoring and addressing risks to the funds.
The FDIC limits the effect on the economy and the financial system when a bank or thrift institution fails. An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s in the US.
