If you’re falling behind on your mortgage payments, an unexpected call from your mortgage company or a government agency offering relief may sound like exactly what the doctor ordered, especially if your caller ID indicates that the source of the call is legitimate.
But after providing personal identifiable information and financial details to the caller — and in some cases, money you thought would be put toward your mortgage — you find out the whole thing is a scam intended to take your money, or worse.
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According to the Federal Communications Commission, the “Green Mirage” scam has cost homeowners hundreds of thousands of dollars across the US. Scammers have already impersonated more than 400 mortgage providers.
The problem is that Green Mirage scams can be hard to catch, because of the fraudsters’ convincing and sophisticated techniques. What the scammers pretend to offer may sound similar to benefits from a legitimate homeowner assistance program or mortgage hardship program. Here’s what to watch out for.
What is the Green Mirage scam?
Just like other phishing and ID theft scams popular today, the Green Mirage ploy aims to get homeowners to fork over their sensitive personal information, their money, or both.
Scammers impersonate legitimate lenders or government employees from agencies like the Federal Housing Administration or Consumer Financial Protection Bureau. They contact homeowners and may claim those homeowners are at risk of foreclosure if they don’t cooperate.
Since criminals are pretending to be a mortgage company or a mortgage assistance program like the Homeowner Assistance Fund, they may use a homeowner’s address, name or mortgage company to try to convince the homeowner to reveal more information.
The FCC couldn’t confirm where bad actors are getting their information to target victims, but experts say it’s likely the usual suspects.
“It’s in all the usual ways,” said Neal O’Farrell, founder of the Identity Theft Council and a member of the CNET Money Expert Review Board. “Collating and matching from the billions of stolen records already on the dark web; focusing just on data related to mortgage applications or relief; attacking and breaching specific mortgage brokers; or using dishonest insiders to share the information.”
The scammers promise homeowners mortgage relief if they’re willing to send home loan payments to a new, fake company under the fraudsters’ control. This may sound like mortgage refinancing, but it’s really an effort to get homeowners to send cash to fake companies, under the guise of getting help.
The fraudsters may even be able to portray actual mortgage lenders through Caller ID spoofing, according to the FCC. Caller ID spoofing is when a scammer or someone masks their actual phone number with details of another, usually by using voice-over Internet Protocol, or VoIP, technology.
The FCC also says some scammers convince homeowners to make their new mortgage payments using Walmart Green Dot Prepaid Cards, which should be a huge red flag to anyone receiving a call.
Who is likely to be targeted?
The Green Mirage scam is especially predatory because criminals tend to target homeowners who are already struggling financially.
The FCC says scammers target homeowners who’ve already sought debt relief from their mortgage company, usually because they’re behind on monthly loan payments — or soon will be.
Struggling homeowners are more likely to answer a call and be open to providing money or information in exchange for aid. And since the scammers seem to know a little about their financial woes and their personal information, including their name, address and mortgage lender, alarm bells may not go off for the homeowner — at least not immediately.
Scammers sometimes get leads on potential targets and find victims’ information on the dark web or via data breaches.
How can you protect yourself?
When it comes to preventing identity theft and other types of fraud, arming yourself with information is always a good start. Simply knowing that Green Mirage scams exist makes you more likely to sniff them out.
Suppose you get a call from a mortgage lender or mortgage relief company concerning potential debt relief or a modification to your home loan. In that case, the FCC recommends hanging up the phone and calling your lender directly instead. This can help you verify whether the original contact was legitimate. And if you need access to hardship options for your mortgage, your legitimate lender may be able to help.
Other ways to protect yourself include:
- Never buy gift cards to pay a bill. The FCC says only criminals will ask you to cover a bill by buying a gift card and reading them the numbers off the back. In other words, real businesses or other entities won’t ask you to buy a gift card to pay them.
- Watch out for high-pressure tactics. If someone is pressuring you to send money or make payments right away, it’s probably a scam.
- Never reveal sensitive information over the phone. Generally, you should never share information like your bank account details, mortgage information or Social Security number over the phone. An exception can be made if you’re speaking with a trusted source and you contacted them directly (not the other way around).
The FCC also says you should report potential scams to the Federal Trade Commission (FTC) and your state’s attorney general’s office.
What should you do if you’re a victim of this scam?
If you think you might have been the victim of the Green Mirage scam, consider the following steps:
- Call your mortgage lender. Immediately stop communicating with the scammers, and contact your mortgage lender directly to find out your loan status.
- Place a fraud alert on your credit reports. If you shared or verified sensitive information like your SSN over the phone, placing a fraud alert on your credit reports means lenders and other creditors must call you to confirm your identity any time someone (including you) tries to open a new account in your name.
- Freeze your credit reports. Freezing your credit reports can prevent criminals from opening new accounts in your name. You can temporarily unfreeze your credit if you need to apply for a credit card or loan.
- Start an ID theft report at IdentityTheft.gov. If this scam leads to identity theft — where you provided your SSN or other personally identifying information that was used to open new accounts in your name — the FCC recommends filing an identity theft report with the Federal Trade Commission (FTC) at IdentityTheft.gov. This can help you document the fraud and begin a recovery plan tailored to your situation.
- Sign up for identity theft protection and credit monitoring services. ID theft protection companies like Aura (our best overall service) offer plans that can help monitor your credit reports as well as your bank accounts, investment accounts, home title and more. These plans usually come with $1 million or more in identity theft protection insurance, per adult, although coverage options vary across companies.
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