A recent lawsuit, Skertich vs. Shellpoint Mortgage Servicing and Alliant Credit Union, highlights alarming vulnerabilities in Home Equity Lines of Credit (HELOCs) when it comes to wire fraud. According to the complaint, a fraudulent wire transfer amounting to $425,650 was authorized using counterfeit documents and improper verification processes. Despite clear red flags, such as mismatched signatures and suspicious IP addresses, the financial institutions involved processed the transaction. This serves as a stark reminder for homeowners in St. Louis and beyond to exercise caution with HELOC accounts.
The case emphasizes the importance of robust security protocols. The plaintiffs allege that the defendants failed to have commercially reasonable systems in place to detect and prevent fraudulent activity. This situation escalated further when the victims were held liable for the unauthorized transaction, leading to increased balances and potential foreclosure actions. Homeowners utilizing HELOCs must regularly monitor account activity and promptly report any discrepancies.
For St. Louis area homeowners, this case is a reminder to protect your equity by using secure communication channels with your lender, reviewing monthly statements thoroughly, and inquiring about the security measures your provider has in place. The full complaint, detailing the allegations and implications, can be reviewed below.
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