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Property owners warned about fake bailout.hud.gov Web site
[March 14, 2009]

Property owners warned about fake bailout.hud.gov Web site


Mar 14, 2009 (The Buffalo News - McClatchy-Tribune Information Services via COMTEX) -- An Internet Web site that looks like a federal Housing and Urban Development operation providing financial help for homeowners facing foreclosure actually is a "phishing scam" seeking personal information, HUD officials said Friday.



Stephen T. Banko III, HUD's Buffalo field office director, said the site, http://bailout.hudgov.us, has no legitimate connection with HUD or a federal program known as "Home Affordable Modification Program." "The scent of stimulus money is in the air, and the devious are circling like vultures," Banko said. "People are going to have to be more vigilant than ever in separating the legitimate companies from the fly-by-nights." Banko said the official looking site -- which features a look-alike federal emblem and the American flag with a tiny word stating "advertisement" -- illustrates the extraordinary measures scammers are willing to take to confuse the public.

The Internet is not the only place under siege, Banko added.


Acting on complaints from Rep. Brian Higgins, D-Buffalo, about printed material that illegally uses the Federal Housing Administration logo, HUD's legal staff contacted the company responsible for the brochure and told it to halt, Banko said.

"They have agreed to cease and desist with the use of the logo," he said, adding that James Brylinski, Buffalo HUD's lead counsel, has put a second company on notice to halt the same practice.

Both companies, Banko said, were trying to sell their services to help people refinance or stave off foreclosure, when such assistance can be obtained for free.

"The more money that becomes available to help people, the more scam artists will crop up to try to steal it," Banko said. "This is truly a time for the public to beware." Anyone with questions should contact the local HUD office at 551-5755.

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