Identity Thieves Targeting Home Equity Lines of Credit
As the economy continues to decline, people are finding creative ways to increase how much they make. Unfortunately, dishonest people often turn to dishonest means, such as identity theft, to increase their net worth.
It seems that home equity lines of credit (HELOCs) are the latest in a series of financial devices that identity thieves are using to undermine your net worth. As Jay MacDonald of Bankrate.com points out in a CNBC article:
…now that the door to subprime lending has slammed shut, thieves have set their sights on those with good credit and substantial equity in their homes — deep pools of cash that can be easily tapped via a HELOC.
Sharks in deep pools
The FBI says HELOC thieves typically use stolen identification to apply online for a line of credit in your name. Then they instruct the bank to wire the funds to their accounts, providing their own contact information in place of yours. That way, the bank unwittingly contacts the thief to verify the electronic funds transfer.
