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HELOC Fraud is on the Rise

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Home Equity Lines of Credit (HELOCs) are a valuable financial tool, but they have also become a target for fraudsters. At Cabrillo Credit Union, protecting our members’ financial security is always a top priority. Understanding how these scams work and how to prevent them can help you stay one step ahead.

What’s Happening

Criminals are targeting HELOC accounts by gaining access to members’ online banking credentials. Once they are able to log in, they may transfer funds, change account details, or attempt other fraudulent transactions, often without the member realizing it immediately.

Because HELOCs are not always used regularly, fraudulent activity can sometimes go unnoticed longer than on everyday checking accounts.

How These Scams Work

Fraudsters use several tactics to gain access to accounts. Their goal is to take control of your account and access your available credit.

Phishing

Scammers may call, send emails, or texts, that appear to come from your financial institution. These messages often ask you to verify a transaction or confirm account details. Once you provide your login credentials, scammers can use that information to:

  • Reset your password
  • Change your contact information
  • Lock you out of your account
  • Transfer funds without your knowledge

In some cases, they may even redirect fraud alerts to themselves.

Public Record Information

Some mortgage and HELOC filings include personal information such as your name, address, lender, and signature. Fraudsters may use this information to impersonate you or gain your trust in communications designed to steal additional information.

How You Can Protect Yourself

Taking a few simple steps can significantly reduce your risk.

1. Verify Who You’re Communicating With

If you receive a suspicious call, email, or message claiming to be from Cabrillo Credit Union, do not respond directly. Instead, contact us using our official phone number at 858 547 7400.

Important reminder: Cabrillo Credit Union will never call, text, or email you to ask for your verification codes, PIN, full card number, online banking password, or secure access codes.

2. Keep Your Login Credentials Private

Never share your online banking username, password, PIN, or verification codes with anyone. These are private and should only be entered directly into Cabrillo Credit Union’s secure systems.

3. Monitor Your Accounts Regularly

Review your HELOC and other account activity frequently. Even if you are not actively using your HELOC, checking periodically helps detect unauthorized activity early.

4. Store Financial Documents Securely

Keep loan documents in a safe place and avoid sharing sensitive financial information unless absolutely necessary.

5. Act Quickly if Something Seems Suspicious

If you notice unfamiliar transactions, account changes, or suspicious communications, contact Cabrillo Credit Union immediately. Quick action can help prevent or minimize losses.

We’re Here to Help Keep You Safe

Your financial security matters. Cabrillo Credit Union uses multiple layers of security to help protect your accounts, and we encourage members to stay vigilant.

If you ever have questions or concerns about your account security, call us at 858 547 7400.

Working together, we can help keep your accounts and your financial future secure.

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