If you’ve recently received an email from your bank informing you that you’re eligible for a federal loan modification, it’s probably a scam—even if the email includes the bank’s logo and the correct address of your mortgage loan.
To protect yourself from mortgage refinance scams, be wary of unsolicited emails offering lower interest rates and always verify the sender's legitimacy by contacting your lender directly, not responding to the email.
Red Flags to Watch Out For
- Unsolicited Offers: Be cautious of emails offering to refinance your mortgage that you didn't request.
- Urgency and High-Pressure Tactics: Scammers often use language that creates a sense of urgency or pressure to act quickly.
- Suspicious Email Addresses or Links: Scammers may spoof email addresses or use links that redirect to fake websites.
- Requests for Personal Information: Never provide your Social Security number, bank account details, or other sensitive information via email unless you initiated the contact and are certain the sender is legitimate.
- Unfamiliar Companies: If you don't recognize the company or lender, be extra cautious and verify their legitimacy.
- Requests for Upfront Fees: Legitimate lenders don't require upfront fees to process a loan application.
- Offers That Seem Too Good to Be True: If the interest rate or terms seem unrealistically low, be skeptical.
- Requests to Change Wiring Instructions: Scammers may attempt to divert your closing funds to fraudulent accounts by posing as real estate or settlement agents.
- Grammatical Errors or Poorly Written Emails: Scammers may use poor grammar or spelling, which can be a sign of a fake email.
How to Verify Legitimacy
- Contact Your Lender Directly: If you receive an email about your mortgage, contact your lender directly through a known phone number or website to verify the email's authenticity.
- Verify Sender Information: Double-check the email address and domain name to ensure they match your lender's official contact information.
- Hover Over Links: Before clicking on any links in an email, hover your mouse over them to see where they lead.
- Don't Click on Links or Open Attachments: If you're unsure about the legitimacy of an email, avoid clicking on any links or opening attachments.
- Report Suspicious Activity: If you believe you've been targeted by a scam, report it to the Federal Trade Commission (FTC) or your state's Attorney General.
Protect Yourself
- Be Wary of Unsolicited Communications: Be especially cautious of unsolicited emails, phone calls, or texts offering loan refinancing or other financial services.
- Never Share Sensitive Information: Don't share your Social Security number, bank account details, or other personal information unless you initiated the contact and are certain the sender is legitimate.
- Use Strong Passwords and Enable Two-Factor Authentication: Protect your email accounts and other online accounts with strong, unique passwords and enable two-factor authentication.
- Stay Informed: Keep up-to-date on common scams and how to avoid them.
If you receive an email that appears to be from Chambers Bank about your loan, contact us directly to verify authenticity.