HELOC Fraud Protection 2026: Guard Your Equity

The 2026 Scammer Playbook

Your home equity is likely your biggest asset. It is also a target. In 2026, "Deed Fraud" and "HELOC Hijacking" are sophisticated crimes where criminals use AI to forge your signature, transfer your deed to an LLC, and open a HELOC in your name to drain the cash.

Red Flags of Predatory Lending

• "Guaranteed Approval" Ads: No legitimate lender guarantees approval without checking credit.
• Unsolicited Offers: If you get a text or email from a "Bank" you have never heard of offering 3% rates when the market is 8%, it is a scam.
• Upfront Fees: Never pay a "Application Fee" or "Insurance Fee" via Venmo or Wire Transfer before closing.

How to Protect Yourself

1. Freeze Your Credit: Keep your credit reports frozen at Experian, TransUnion, and Equifax. Unfreeze them only for the week you are applying.
2. Title Lock Insurance: Consider a monitoring service (or check your county recorder's office monthly) to ensure the deed to your home hasn't changed.
3. Use Verified Lenders: Only apply with FDIC-insured banks or NMLS-licensed brokers. You can verify a license number on NMLS Consumer Access.

What to Do If You Are Scammed

If you suspect someone has opened a line in your name, contact the FBI's Internet Crime Complaint Center (IC3) immediately and file a police report. This is the only way to shield yourself from liability for the debt.