CONSUMER ALERT - MasterCard Phishing Alert

April 21. 2008

Metavante, Salem Co-operative Bank’s card issuer, has learned of a recent phishing campaign targeting MasterCard users.

DESCRIPTION: A phishing campaign that was recently discovered targets MasterCard users, promising them a 16 percent discount on future purchases made with the MasterCard card as a reward for signing up for MasterCard SecureCode.  An included link leads to a phishing site which appears identical to the real MasterCard site, and cardholders are required to supply confidential information such as credit card expiration date, date of birth, and the three-digit CVC code that appears on the bank of the card.

MasterCard and Metavante do not send unsolicited e-mails to cardholders.  In addition, Metavante recommends that cardholders should not click on links in unsolicited e-mails before verifying that the e-mail and the site address is legitimate.

CONSUMER ALERT - FRAUDULENT E-MAIL CLAIMS TO BE FROM THE FDIC

March 18, 2008

Summary: Fraudulent e-mails are being sent to consumers that claim to be from the FDIC in an attempt to obtain sensitive personal information, including bank account information. These e-mails falsely indicate

that consumers can enroll in card insurance to protect against Internet fraud.

The Federal Deposit Insurance Corporation (FDIC) has received numerous notifications from consumers of

an e-mail that gives the appearance of being sent from the FDIC. The "From" line of the e-mail displays the name "Federal Deposit Insurance Corporation " and the subject includes the words "Consumer Protection."

Current versions of the fraudulent e-mail state:

"Who is FDIC?

The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks.

What can FDIC do for you?

Despite the efforts of law enforcement, Identity theft is becoming more sophisticated and the number of new victims is growing. In general, consumers are protected against liability for unauthorized accounts or transactions under federal and state law and by financial industry practices. Identity Theft can affect consumers in many ways, thats [sic] why FDIC is presenting a new card insurance which can restore you up

to $500 if you are a victim of internet fraud.

Learn more about Consumer Protection > Card Insurance:
Clicking here will redirect you to a online signup page for this program."

The e-mail requests that recipients click on a hyperlink that is provided. This directs the recipient to a "spoofed" Web page requesting the user to enter personal information to receive $500 of "card insurance."

The requested information (name, phone number, Social Security number, address, card number, bank name, card expiration date, card verification code, and electronic signature/ATM PIN) could be used to perpetrate identity theft and gain unauthorized access to bank accounts. Be aware that the appearance of the fraudulent

e-mails can be modified and that additional variations are possible.

Consumers should NOT access the link provided within the body of the e-mail and should NOT, under any circumstances, provide any personal financial information through this media.

The FDIC has shut down the fraudulent Web site and is investigating the source of the e-mails. Consumers

are asked to report any similar attempts to obtain this information to the FDIC by sending information to alert@fdic.gov.

March 18, 2008

Summary: Fraudulent loan offers that may claim to be from federally insured financial institutions are being widely distributed by unsolicited e-mail over the Internet.

The Federal Deposit Insurance Corporation (FDIC) is reminding consumers and financial institutions to be aware of advance fee loan scams. The FDIC has observed a significant increase in the number of unsolicited

e-mails ("spam") advertising mortgage refinancing, debt consolidation and elimination, small business loans, and special loan programs for veterans and minorities. While some of these e-mails may advertise legitimate loan programs and lenders, advance fee loan scams are becoming more prevalent.

Advance fee loan scams prey on consumers who may be under financial duress and may be seeking quick and easy loan approval and funding. The scam typically involves the lender making false promises to arrange for a loan in return for fees paid upfront by the loan applicant. Scam artists may even design Web sites and online loan applications giving the appearance that the company is legitimate.

Fraudulent logos and letterhead of legitimate financial institutions or government agencies may also appear

on documents that are faxed to the loan applicant. Potential borrowers may be asked to provide information through a Web site or be contacted by phone or e-mail by a "representative" who guarantees loan approval

as soon as the borrower pays a required fee. The loan applicant may be told that the fees will be used to pay a third party for loan insurance or application processing, or to make the first month's loan payment. The loan applicant may also be told to send or wire transfer money to an individual overseas before receiving the loan proceeds.

In some cases, the loan applicant has been falsely directed to a legitimate financial institution with no knowledge of the transaction. In other cases, the loan applicant is told that the loan request was declined

and is asked to forward additional money to qualify for a different loan program.

The following are warning signs that may indicate a loan offer is not legitimate:

• The loan approval is "guaranteed." Lenders do not typically guarantee loans before analyzing the applicant's financial condition, credit history and ability to repay.
  
• The loan applicant is required to pay upfront fees to a third party or individual. Loan fees are normally paid to a business after the loan has been approved.
  
• The lender or loan processor may be located outside of the United States.
  
• Fees are requested using a retail wire transfer system. A password is sometimes used by the overseas receiver to pick up the funds in an attempt to hide the true identity of the criminals and make funds more difficult to trace.

Victims of online advance loan fee scams should report the crimes to the Internet Crime Complaint Center at http://www.ic3.gov/. More information about fraudulent advance loan fee scams can be found at http://www.ftc.gov/bcp/conline/pubs/tmarkg/loans.shtm.

• Information about counterfeit items, cyber-fraud incidents and other fraudulent activity may be forwarded to the FDIC's Cyber-Fraud and Financial Crimes Section, 550 17th Street, N.W., Room F-4004, Washington, D.C.20429, or transmitted electronically to alert@fdic.gov. Information related to federal deposit insurance or consumer issues should be submitted to the FDIC using an online form that can be accessed at http://www2.fdic.gov/starsmail/index.asp.

• For your reference, FDIC Special Alerts may be accessed from the FDIC's website at www.fdic.gov/news/news/SpecialAlert/2006/index.html. To learn how to automatically receive FDIC Special Alerts through e-mail, please visit www.fdic.gov/about/subscriptions/index.html.

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.