For most homeowners, a mortgage is one of the largest financial commitments they’ll ever make. Unfortunately, that also makes mortgage borrowers an attractive target for scammers looking to steal money or personal information. Fraudsters often disguise themselves as legitimate mortgage companies and use convincing tactics to pressure homeowners into sending payments to the wrong place.
Understanding how these scams work can help you recognize warning signs before becoming a victim. You can always contact Shellpoint if you want to verify who is contacting you.
Click to navigate:
- What Is a Payment Diversion Scam?
- How Fraudsters Ask for Payment
- Warning Signs You Shouldn't Ignore
- Steps You Can Take to Stay Safe
- What to Do If You Suspect a Scam
- How Shellpoint Can Help
What Is a Payment Diversion Scam?
A payment diversion scam is a type of mortgage fraud in which someone falsely claims to represent your mortgage servicer and attempts to redirect your mortgage payment to an unauthorized account. These scams typically happen through email, phone calls, text messages, or even mailed correspondence.
The scammer may contact you with a story designed to create urgency or confusion, claiming there is an issue with your mortgage account that requires immediate action. The scammer’s goal is to convince you to send money before you can confirm their authenticity.
They might claim to be calling about:
- An overdue mortgage payment that must be resolved right away
- A mortgage relief opportunity that requires upfront fees1
- Assistance avoiding foreclosure
- An escrow account shortage that needs immediate payment
- Other mortgage-related charges or penalties
Although it’s possible to receive a legitimate communication about these topics, make sure you know who you’re speaking to before giving up any identifying information or making any payments.
How Fraudsters Ask for Payment
One of the easiest ways to identify a scam is by looking at the payment method being requested. Legitimate mortgage servicers use established payment channels associated with your mortgage account.
Scammers, however, often direct homeowners to send money through methods that are difficult to trace or recover, such as:
- Wire transfers to unfamiliar bank accounts
- Gift cards purchased from retailers
- Prepaid debit or credit cards
- QR codes or barcodes that must be scanned at a store
- Digital payment methods that are not associated with your mortgage account
- Once the money is sent, recovering it can be extremely difficult.
Warning Signs You Shouldn't Ignore
Scammers frequently rely on pressure and urgency to prevent borrowers from stopping to verify the request. If something feels off, trust your instincts and investigate further.
Be especially cautious if you encounter any of the following:
Unexpected Requests for Money
Receiving a surprise demand for payment—particularly one you weren't expecting—should always prompt additional verification.
Urgent Deadlines or Threats
Fraudsters may claim you must act immediately to avoid foreclosure, penalties, or account suspension. Creating panic is a common tactic designed to rush your decision-making.
Unusual Payment Instructions
Requests to send money using gift cards, wire transfers, QR codes, or other nontraditional payment methods are major warning signs.
Unrecognized Contact Information
Pay close attention to email addresses, phone numbers, and website links. Even if a message appears professional, unfamiliar contact information may indicate a fraudulent attempt.
Requests for Sensitive Information
Be wary of anyone asking for passwords, account credentials, Social Security numbers, or other personal information without a clear and legitimate reason.
Requests to Redirect Mortgage Payments
Be cautious if someone instructs you to stop paying your mortgage servicer and instead send payments to an individual, a third-party company, or a different account.
Steps You Can Take to Stay Safe
While mortgage fraud continues to evolve, there are practical steps homeowners can take to reduce their risk.
Verify Before You Pay
If you receive a payment request that seems unusual, contact your mortgage servicer directly using a trusted source such as your monthly mortgage statement or the phone number listed on the company's official website.
A customer service representative can confirm whether the request is legitimate and verify the correct payment instructions.
Avoid Clicking Suspicious Links
Fraudulent emails often contain links to fake websites designed to capture your login credentials or personal information. Rather than clicking links within the message, navigate directly to your servicer's website using your browser.
Double-Check Account Information
Before sending any payment, verify that the account name, routing number, and account number match the information provided by your mortgage servicer through official channels.
If you have any concerns about the legitimacy of the account information, or if payment instructions have changed for some reason, contact your servicer directly using a trusted phone number before sending funds.
Protect Personal Information
Never provide financial information, passwords, or identifying details unless you've confirmed you're speaking with an authorized representative.
Trust Your Instincts
If a request seems unusual, aggressive, or inconsistent with your previous interactions, pause and verify before taking action.
What to Do If You Suspect a Scam
Taking quick action can help limit potential damage. You can call or chat online with Shellpoint if you suspect fraud and we’ll do what we can to help.
- If you believe you've been contacted by a scammer:
- Don’t continue to communicate with the scammer
- Don’t send money or provide personal information
- Contact your mortgage servicer through verified contact information
- File a report with a consumer protection agency and/or law enforcement, depending on your situation
You can report suspected fraud to:
- The Federal Trade Commission (FTC)
- The Consumer Financial Protection Bureau (CFPB)
If you’ve sent money to or shared personal information with a suspected scammer or have had your identity stolen, you can also contact local law enforcement or report the crime to the Federal Bureau of Investigation (FBI), depending on the details of the crime.
Reporting suspicious activity may help prevent other homeowners from becoming victims.
How Shellpoint Can Help
Shellpoint is committed to helping protect customers from fraud by sharing helpful information like this. Take the time to confirm that a call, email or other communication is authentic—that can help you protect your home and finances. If something doesn’t feel right, reach out to us—we’re here to help you feel confident every step of the way.