Fake CU Ad Scam Is Spreading

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The fake credit union ad scam continues to spread, with the advertisements now appearing in newspapers in 10 states. Ads from "First Rate Credit Union" have appeared in Utah, Pennsylvania and North Carolina, after earlier appearing in newspapers in Wisconsin and Michigan.

The ads are similar to another scam for the fake "Century Credit Union" that appeared in papers in Missouri, Washington, Indiana, Ohio, California, Colorado, and Alaska, as well as Pennsylvania.

The pitch is the same in all the ads, offering "hassle-free loans" to borrowers. Those who call the phone numbers in the ad hear an electronic menu of options.

They are then asked to wire an advance payment on the loan through Western Union. State Employees Credit Union in North Carolina reported that one of its members lost $1,500 to the scam. The ads include the logos of NCUA and the CUNA brand "America's Credit Unions." Anyone with information on the scam is being asked to call the NCUA Fraud Hotline at 703-518-6550 or 800-827-9650.

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