FRAUDULENT EMAILS CLAIMING TO BE FROM NACHA
(Phishing Alert Update 03/11/2011)

Further to its notice of February 22, 1011, NACHA – The Electronic Payments Association has received reports that individuals and/or companies continue to receive fraudulent emails that have the appearance of having been sent from NACHA. These emails vary in content and appear to be transmitted from email addresses associated with the NACHA domain (@nacha.org). Some bear the name of fictitious NACHA employees and/or departments.

NACHA itself does not process nor touch the ACH transactions that flow to and from organizations and financial institutions. NACHA does not send communications to persons or organizations about individual ACH transactions that they originate or receive.

Be aware that phishing emails frequently have attachments and/or links to Web pages that host malicious code and software. Do not open attachments or follow Web links in unsolicited emails from unknown parties or from parties with whom you do not normally communicate, or that appear to be known but are suspicious or otherwise unusual.

If malicious code is detected or suspected on a computer, consult with a computer security or anti-virus specialist to remove malicious code or re-install a clean image of the computer system.

Always use anti-virus software and ensure that the virus signatures are automatically updated.

Ensure that the computer operating systems and common software application security patches are installed and current.

Additional information and guidance on phishing is available from the Federal Deposit Insurance Corporation (FDIC).

CUSTOMER NOTICE 

Salem Co-operative Bank participates in the FDIC Transaction Account Guaranty (TAG) Program.  The TAG Program provides for an unlimited FDIC guarantee for deposits in qualifying noninterest-bearing transaction accounts maintained at insured depository institutions.  Information about this program can be found at www.FDIC.gov.

Coverage under the Transaction Account Guarantee Program is in addition to, and separate from, the coverage available under the

FDIC’s general deposit insurance rules.

NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS

All funds in a "noninterest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010 through December 31, 2012.  This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.

The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest.  It also includes an Interest on Lawyer Trust Account ("IOLTA").  It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.FDIC.gov.

FOR YOUR PROTECTION...

The Bank will NOT contact you by phone, e-mail or website to request your social security number, account number, passwords or PINs.  However, if you call us, we might ask for some information to confirm your identity.

PHISHING

Phishing is one of the latest cons used by high-tech criminals to facilitate one of America 's leading forms of fraud - identity theft. Basically, the scam uses unsolicited email (spam) to bait consumers into disclosing sensitive personal information such as social security numbers, account and routing numbers, credit card numbers, personal identification numbers, passwords, and other private data. Contact the Bank immediately if you suspect that you have fallen victim to "phishing" by providing private financial information to these scammers. You should also contact the major credit bureaus and let them know that your personal financial information may have been compromised. The three major credit bureaus are: Equifax at 1-800-525-6285; Experian at 1-888-397-3742; and TransUnion at 1-800-680-7289. If you would like to receive our pamphlet on Phishing, please pick one up at the Bank or call us at 1-603-898-2153.

CHECK 21

The Check Clearing for the 21 st Century Act (Check 21) went into effect on October 28, 2004 . With 9/11, the Banking Industry found that checks stopped clearing when the New York Federal Reserve was unable to send or receive checks due to transportation problems at that time. It is part of our homeland security to be able to clear checks and continue business even if the planes, trains, and automobiles stop moving. This new law enables banks to process images of checks instead of the actual checks through the banking system without depending on traditional modes of transportation. What this means for you is that your check could clear in the time it takes to send a digital picture through the computer along a phone line. You will see a new item called a SUBSTITUTE CHECK , which is a printed copy of your check after it has been imaged. Check 21 gave legal status to this substitute check. If you would like to receive a copy of our disclosure that provides more details as well as telling you your rights regarding Substitute Checks, stop in at the Bank or call us at 603-898-2153.

Be prepared! Your checks will be clearing a lot faster than before! This means you should not count on any "float" time. You may see a check that you wrote clearing your account the next day, or even possibly, the SAME DAY!

The FACT ACT

Section 151 of the FACT ACT (Fair and Accurate Credit Transactions) states that it is mandatory for banks to provide information to consumers who allege ID theft after the consumer presents proper notification and their identification is verified.

Section 217 of the FACT ACT requires lenders to provide notice to consumers of any negative information reported to the credit reporting agencies. Negative information means information concerning a customer's delinquencies, late payments, insolvency, or any form of default. After this notice, the institution may submit additional negative information about the consumer to a nationwide consumer reporting agency without providing additional notice to the customer.