
Do you have a home equity line of credit (HELOC) account? If so, it’s imperative that you check the account often to guard against fraud. Scammers can gain access and potentially drain thousands of dollars quickly by stealing identities and fooling lenders. There has been a significant increase in HELOC-related check fraud schemes due to the fraudsters using information available in public records to create checks drawn on HELOCs. The records often contain all the information they need to generate checks, including names, addresses, lenders, signatures, and account numbers.
Reduce your risk of becoming a victim of HELOC fraud by following a few simple steps:
- Safeguard your personal information and financial details.
- Consider using credit monitoring with the three major credit bureaus.
- Conduct routine HELOC account reviews.
- Beware of phishing scams and opening unfamiliar pop-ups or links.
- Use unique passwords and multifactor authentication.
- Ask your lender if you can opt out of HELOC checks and take draws by electronically transferring funds to your bank account.
- Utilize paid or free credit monitoring programs to monitor your HELOC balance.
If you believe you are a victim of this scam:
- File a fraud report with the Federal Trade Commission (FTC), which will inform you about your next steps.
- File a police report, especially if you suspect you are the victim of identity theft.
- Run an antivirus scan on your electronic devices.
- Change your financial account passwords.
- Report to the FBI complaint center.
Identity thieves are constantly finding new ways to commit crimes, but you can stop them from using your home equity line of credit and alleviate headaches by monitoring your account. Quickly contact all institutions involved if you find out your credit has been compromised. Fraud awareness is a powerful tool against schemes, and recognizing the early signs of HELOC fraud can significantly mitigate its impact.
Resources: Experian, FBI, FTC
Find all of our Fraud Education blog articles on our website here.
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