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Protect Yourself from HELOC Fraud with O1ne Mortgage

Homeowners looking to borrow money without refinancing their mortgage often turn to a home equity line of credit (HELOC). This option can be particularly appealing if you have a low-rate mortgage but want to access the equity you’ve built in your home. However, it’s crucial to be aware of fraudsters who may target your HELOC to steal money.

Understanding HELOC Fraud

HELOC fraud occurs when a criminal takes a fraudulent draw from someone else’s HELOC or opens a HELOC using a home they don’t own as collateral. Fraudsters employ various tactics, such as:

• Creating or writing counterfeit HELOC checks.
• Tricking your lender into changing your account information.
• Stealing your account’s login information through malware.
• Moving money between your accounts before stealing it.
• Creating an online profile to hide their tracks.

While you may not be liable for stolen funds unless you were tricked into sending money directly to a scammer, HELOC fraud can still cause significant issues. If you discover fraudulent activity, your lender might freeze your account during the investigation.

How to Protect Yourself from HELOC Fraud

Since your mortgage and HELOC may be part of public records, fraudsters can use this information to target you. Here are steps you can take to protect yourself:

Beware of Phishing

Phishing emails and texts may appear to come from trusted sources but are attempts by fraudsters to steal your personal and login information. Avoid clicking on suspicious links.

Opt Out of HELOC Checks

Ask your lender if you can opt out of HELOC checks and instead take draws by electronically transferring funds to your bank account or using a HELOC debit card.

Monitor Your HELOC with an Online Account

Create an online account with your lender to prevent fraudsters from setting one up first. Regularly monitor your HELOC statements and sign up for alerts to detect any unauthorized activity.

Use Unique Passwords

Protect your accounts by creating unique passwords that are not reused across different platforms. Consider using a password manager to store these passwords securely.

Enable Multifactor Authentication

Enable multifactor authentication (MFA) on your account to add an extra layer of security. This requires a second type of verification, such as a code sent to your email or phone, when logging in.

Monitor Your Credit

Use credit monitoring programs to keep an eye on your HELOC’s balance and receive real-time alerts if someone tries to use your information to apply for a new account.

Add a Security Freeze to Your Credit Reports

Add a security freeze to your credit reports to limit access and prevent fraudsters from opening a HELOC or other credit accounts in your name. This service is free and can be done separately for each credit report.

What to Do if You’ve Been a Victim of HELOC Fraud

If you notice unusual activity in your HELOC account, contact your lender immediately. You may not be liable for fraudulent debt, but it’s essential to stop the fraudster and ensure access to your account. Additionally, consider taking these steps:

• File a fraud report with the Federal Trade Commission (FTC).
• File a police report if you suspect identity theft.
• Run an antivirus scan on your devices.
• Change your account’s password.
• Add fraud alerts to your credit reports.

Securing and regularly monitoring your HELOC account is the best way to prevent and detect HELOC fraud. Monitoring your credit can also help detect and stop various types of credit fraud.

For any mortgage-related needs, call O1ne Mortgage at 213-732-3074. Our team is here to help you protect your financial future with confidence.

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