Keep Your Mortgage Cybersafe

Imagine waking up to hear that Graceland, home of the legendary Elvis Presley, would go up for auction. In 2024, a fake company tried to auction the home, claiming descendants failed to pay off a 3.8 million dollar mortgage loan using Graceland as collateral. Using stolen notary signatures, a fabricated company, and a fake Deed of Trust, Lisa Findley unsuccessfully attempted to auction off the beloved historical site. While this fraud was prevented, many similar and costly mortgage frauds occur using identity theft. Good news – we have some tips you can use to protect your home!

Understanding Identity Theft Mortgage Fraud

This type of fraud can show up in many ways—the common denominator is using stolen personal information to impersonate the victim. Thefts will use this information to take out mortgages and home equity lines (HELOC) under someone’s name, refinance their home, and drain their equity. Identity theft mortgage fraud can have massive consequences, from destroying a person’s credit score to home foreclosure. The good news is, with the right precautions, this type of fraud is preventable. Here are some tips you can use to protect your home.

Tip 1: Check your credit report and mortgage statement regularly.

You are entitled to a free copy of your credit report for each of the three major credit bureaus (Equifax, Experian, and TransUnion) each year. Negative changes in your credit score, and discrepancies in your mortgage and lending statements, can indicate fraud, so leverage this resource. Through AnnualCreditReport.com, free weekly credit reports through the three credit reporting bureaus are now available. If you find fraud, contact your mortgage lender, freeze your credit reports, and file a report with the FBI’s Internet Crime Complaint Center at www.ic3.gov.

Tip 2: Use a password manager instead of weak passwords.

Creating and remembering strong and unique passwords across a multitude of accounts is difficult, often leading to recycled passwords. This can leave your account susceptible to being hacked. Instead of recycling or using weak passwords, use a reputable password manager to keep track of your passwords.

Tip 3: Always stay informed.

Identity theft mortgage fraud schemes mutate and change often, so make sure you are up to date with the latest information. Check communications from your mortgage lender and real estate agent to learn the impact of potential threats. For more resources on identity theft and mortgage fraud prevention, visit IdentityTheft.gov and ReportFraud.ftc.gov.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.