Here’s an important reminder that could save you thousands: Always monitor your HELOC account, even if you’re not making any withdrawals. In recent years, HELOCs have become a major target for identity thieves.

HELOC fraudsters have a scam that allows them to withdraw money from a homeowners HELOC without any notification going to the borrower. If you don’t stay on top of your account, months could go by without any indication of foul play.

The Tri-State Defender reports:

“Stolen customer identification information is being used to compromise Home Equity Lines of Credit (HELOC) accounts. To facilitate this scheme, perpetrators pose as customers to establish HELOC Internet account services and manipulate customer account verification processes, including rerouting telephone calls, forging signatures, using passwords, and reciting recent account history. For example, a perpetrator uses the account holder identification information to contact a financial institution and request an advance of funds on a HELOC account.”

If you believe that your HELOC has been compromised, call your bank immediately.

See Also:

Feds Crack HELOC Fraud Ring

Home Equity Line Thieves

Tags | Heloc, hom equity line of credit, identity theft