The recent Equifax data breach, which exposed the personal information of about 143 million Americans—one of the largest hacks on record—could put home sales at risk. For consumers trying to get a mortgage, the data breach, which compromised people’s Social Security numbers, addresses, and credit card information, could stall their loan approval or put them at risk for having their information stolen and used in unlawful real estate transactions.
Scammers could also use stolen Social Security numbers to open up new credit cards and rack up debt under a person’s name, which could ruin the victim’s credit score. “If you have your identity stolen, it causes a lot of problems,” Don Frommeyer, a mortgage loan officer at Marine Bank in Indianapolis, told realtor.com®. “You have to prove it wasn’t you.”
Rob Douglas, an identity theft expert, predicts there will be an increase in fraudulent mortgage and refinance applications due to the Equifax breach. Loan officers may have to put additional vetting procedures in place, which, in turn, could slow down the loan approval process and burden borrowers with extra costs.
What Consumers Should Do
For your clients to better protect themselves, security experts recommend taking the following steps: