The value of homes are on the rise as real estate continues to recover from the crash of 2008. Taking out a line of credit using your home’s equity can be a great way for homeowners to obtain some beneficial funds. Unfortunately, cybercriminals are aware of this interest and are using their tricks to steal your financial information or payments.

A line of credit is usually a low interest, withdrawal on demand loan made by a bank, with the homeowners property standing as collateral. Low interest makes these loans attractive to borrowers and to scammers who advertise their fake line of credit services online.

 

People who respond to their ads, which show up in searches or on perfectly legitimate websites, are usually told they must pay an upfront fee for valuation and processing, or are asked to provide details of their bank accounts for supposed credit vetting.  In either case, there is no loan forthcoming.

There are several red flags that signal these offers are a scam. How can you spot a line of credit scam?  If the supposed lender approves the line of credit request almost immediately, without the borrower completing an application form, it is very likely a scam.  Be distrustful if a person, bank or loan company asks for money up front.  This is not professional behavior.

If you are in the market for a line of credit, its always best to deal with your existing bank or an established, reputable financial institution.

Quick Tips

  • Watch out for ads promising interest rates significantly lower than the norm.
  • Don’t deal with individuals or organizations you haven’t thoroughly vetted.
  • If you are unable to find a physical address of the loaner, then it’s most likely a scam
  • There are no legitimate companies who will guarantee you a loan without an application

If you feel this information is useful, and your employees could benefit from weekly Cyber Security Tips and training, call 214.210.4415 option 2 to discuss our Cyber Security Training program with one of our technical sales associates.