Beware! Online Credit and Mortgage Scams Are Everywhere
by Jeanette Joy Fisher
One of our close family friends, an accountant and real estate investor, came too close to making a huge mistake online. Like many banks, Greg's bank sends out business banking emails to their customers. Our friend opened an email that looked just like the usual newsletter and clicked on a link to read more of an article. The website looked just like his bank's website. After reading the article, he clicked on a link to go to his account. Greg put in his password and ended up in a page that wanted to verify his account.
Although our friend stopped, he still had given his email and password. Many online services only require that information to enter their database. Do you always use the same password? Greg had to spend the day changing passwords on all the websites he remembered.
If you check your email every morning like millions of other Americans, you probably already know that scammers have become even more aggressive in trying to steal information about unwary consumers than ever before. Recently, one of the most prevalent schemes has been to send scam emails about home mortgage information. There are five main approaches scammers use to try to dupe you out of your personal information.
The first is a new twist on an old scam: an offer to fix your credit in twenty-four hours. In this scam, scammers promise that all your credit problems will be resolved in one day. It's a ridiculous promise, and one that can't possibly be fulfilled, no matter how much you're willing to pay. Fixing your credit can only be done over time and with serious effort.
The second scam is more sophisticated, and involves fake mortgage websites. These sites are often very slick-looking and meant to mimic those of genuine mortgage lenders, but their sole purpose is to steal your personal information. Since they look so real, these sites can be dangerous, but legitimate companies will never send emails asking for personal information, so make it a rule that if you get emails asking for such information, don't respond.
A third common strategy is called phishing, which is an even more sophisticated tactic, since the email itself is designed to look completely official, as if from a well-known lender, bank, credit card, or online auction company. These emails ask for sensitive financial information such as Social Security numbers, passwords, or account information. As with the other scams we've mentioned, the key is to remember that legitimate companies don't send emails asking for such personal information.
Another scam offers to completely eliminate your mortgage in as little as seven months. The email promises that you can use certain loopholes in the law to rapidly eliminate your mortgage, but it's not possible. Although the concept is tempting, it's not real, so don't fall for this scam.
In the fifth tactic, scammers send out official-looking emails that tell consumers to begin sending their mortgage payments to a new lender. If you get such an email, don't respond. If you follow the directions in the email, you'll only find yourself sending your money to the scammer's bank account. If you have any questions about possible changes to your mortgage terms, call your lender directly and ask. Although loans are often sold to investors and lending institutions do sometimes change names, you'll never be notified of changes via email.
If you believe that you've been victimized by an email consumer scam, you can file a complaint at www.ftc.gov. You can also visit www.consumer.gov/idtheft if you think your identity has been stolen or compromised. As a precautionary measure, you can further minimize your risk of becoming a victim of identity theft by ordering a free copy of your credit report from one of the three major credit bureaus once a year. However, your first line of defense will always be NOT responding to the various email scams you receive in the first place!
Copyright © 2006 Jeanette J. Fisher
Free Credit Help Tips ebook helps you with the five mortgage requirements. Learn how to qualify for your first home or multiple investment properties at WorryFreeCredit.com
One of our close family friends, an accountant and real estate investor, came too close to making a huge mistake online. Like many banks, Greg's bank sends out business banking emails to their customers. Our friend opened an email that looked just like the usual newsletter and clicked on a link to read more of an article. The website looked just like his bank's website. After reading the article, he clicked on a link to go to his account. Greg put in his password and ended up in a page that wanted to verify his account.
Although our friend stopped, he still had given his email and password. Many online services only require that information to enter their database. Do you always use the same password? Greg had to spend the day changing passwords on all the websites he remembered.
If you check your email every morning like millions of other Americans, you probably already know that scammers have become even more aggressive in trying to steal information about unwary consumers than ever before. Recently, one of the most prevalent schemes has been to send scam emails about home mortgage information. There are five main approaches scammers use to try to dupe you out of your personal information.
The first is a new twist on an old scam: an offer to fix your credit in twenty-four hours. In this scam, scammers promise that all your credit problems will be resolved in one day. It's a ridiculous promise, and one that can't possibly be fulfilled, no matter how much you're willing to pay. Fixing your credit can only be done over time and with serious effort.
The second scam is more sophisticated, and involves fake mortgage websites. These sites are often very slick-looking and meant to mimic those of genuine mortgage lenders, but their sole purpose is to steal your personal information. Since they look so real, these sites can be dangerous, but legitimate companies will never send emails asking for personal information, so make it a rule that if you get emails asking for such information, don't respond.
A third common strategy is called phishing, which is an even more sophisticated tactic, since the email itself is designed to look completely official, as if from a well-known lender, bank, credit card, or online auction company. These emails ask for sensitive financial information such as Social Security numbers, passwords, or account information. As with the other scams we've mentioned, the key is to remember that legitimate companies don't send emails asking for such personal information.
Another scam offers to completely eliminate your mortgage in as little as seven months. The email promises that you can use certain loopholes in the law to rapidly eliminate your mortgage, but it's not possible. Although the concept is tempting, it's not real, so don't fall for this scam.
In the fifth tactic, scammers send out official-looking emails that tell consumers to begin sending their mortgage payments to a new lender. If you get such an email, don't respond. If you follow the directions in the email, you'll only find yourself sending your money to the scammer's bank account. If you have any questions about possible changes to your mortgage terms, call your lender directly and ask. Although loans are often sold to investors and lending institutions do sometimes change names, you'll never be notified of changes via email.
If you believe that you've been victimized by an email consumer scam, you can file a complaint at www.ftc.gov. You can also visit www.consumer.gov/idtheft if you think your identity has been stolen or compromised. As a precautionary measure, you can further minimize your risk of becoming a victim of identity theft by ordering a free copy of your credit report from one of the three major credit bureaus once a year. However, your first line of defense will always be NOT responding to the various email scams you receive in the first place!
Copyright © 2006 Jeanette J. Fisher
Free Credit Help Tips ebook helps you with the five mortgage requirements. Learn how to qualify for your first home or multiple investment properties at WorryFreeCredit.com
posted by Jeanette at Monday, September 04, 2006
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