High-tech home equity scams abound

The electronic age has transformed and revolutionized virtually every activity, including the way criminals operate. Last week, federal authorities announced a series of arrests and convictions in connection with a global identity theft ring that used high-tech equipment and old fashion thievery to steal millions of dollars in home equity lines of credit issued to thousands of consumers.

Documents unsealed by a New Jersey federal judge detailed a scheme where the cyber gang tricked multiple banks and credit unions into wiring more than $2.5 million from home-equity lines to accounts controlled by members of a fraud ring in Canada, China, Japan, Vietnam and South Korea.

In Virginia, three people authorities say were connected to the New Jersey gang pleaded guilty in federal court to conspiracy to commit bank fraud and related charges. Authorities said they stole at least $10 million through home-equity scams. The FBI said the cases highlight an "emerging scheme" in which the crooks target people with untapped home-equity lines of credit.

The thieves in these cases were charged with digging through public property deeds and mortgage records as well as publicly available Internet databases to obtain credit applications, credit reports, victim signatures, birth dates and Social Security numbers. Authorities said the defendants, using the stolen personal information, then phoned banks and credit unions and asked that money from a substantial portion of the lines of credit be wired to banks in Asia and Canada.

For more on this scam:
- check out this WashingtonPost.com article

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