While for most of us it is unthinkable for someone to use the death of a loved one for capital gains, the fact is it happens all the time. Obituary scams, also referred to as Bereavement scams, can happen to anyone at any time. They typically start with information gleaned from death notices in newspapers or posted online. Criminals harvest facts commonly included in obits, such as the deceased’s date of birth or family member’s names. Some obituaries even list where the deceased lived and worked. Scammers can use any of this information to start building a profile for identity theft. When someone you love dies, it is natural to want to share that information and tell the individual’s story. But, as you celebrate a loved one’s life and mourn his or her death, be careful what you share. While friends and family are reading that information, scammers are paying attention too.
With just a few key details, criminals can locate and purchase a dead person’s personal data on the dark web, including home address and Social Security number. They can then use that information in a variety of ways—access or create financial accounts, take out loans, obtain health care, or possibly file phony tax returns and claim bogus refunds under the deceased’s name. This form of ID theft is called Ghosting. And it doesn’t stop at ghosting, scammers can weave what they learn about a recent death into imposter scams targeting a surviving spouse or other family member. Criminals posing as government officials, debt collectors, or insurance agents try to pry more personal data about the deceased or solicit payment for a supposedly unpaid bill or lapsed policy. Oftentimes, these scams can evolve into a romance scam or an attempt to defraud beneficiaries out of inheritance money. Criminals are fond of obituary scams because the victims are either dead or emotionally vulnerable and more prone to manipulation. Scammers even pose as psychics or spiritual advisors to drain money from grieving people. They have even been known to call surviving relatives and pretend to be from the funeral home to try to obtain financial information.
Let’s look at warning signs and preventative measures that can be taken to avoid becoming a victim of this type of scam.
Warning Signs
- You get a call from an alleged government official, debt collector or insurance broker about outstanding taxes, unpaid bills or unfinished business supposedly left by a recently deceased loved one.
- The caller pressures you to pay immediately and asks for payment by wire transfer, gift card or reloadable cash card — all bright-red flags for scams.
- You receive bills or spot credit card activity for expenses accrued after your loved one’s death.
How to protect yourself from this scam
- Report a loved one’s death to Social Security as soon as possible by calling 800-772-1213.
- Send a copy of the death certificate to the IRS so that officials can flag the deceased’s tax account.
- Notify banks and other financial institutions that the late loved one used. If you close accounts, ask that they be listed as “Closed: Account holder is deceased.”
- Notify the major credit bureaus (Equifax, Experian and TransUnion) so that they can place a death notice in the deceased’s credit file. This should prevent fraudulent applications for credit from being approved.
- Get a copy of the deceased’s credit report right after death and a few months later, to check for fraudulent activity.
- Be wary of “long-lost” relatives or friends of the deceased who contact you (especially on social media) and raise financial issues or attempt to forge a relationship. Ask family and old friends if they know or recall the person.
- When writing an obituary, leave out details that could be used for identity theft, such as the deceased’s date and place of birth, middle name, maiden name and mother’s maiden name. And don’t include the deceased’s home address. If the obituary also notes the date and time of the funeral, burglars can break into the presumably empty house during the service.
- Don’t let a debt collectors care you into paying financial obligations for a late spouse, parent or sibling. Generally, the estate is liable for any debts, not the survivors.
You can report this or any other scam to the Federal Trade Commission at reportfraud.ftc.gov or by calling 877-382-4357. The FBI’s Internet Crime Complaint Center is another resource for reporting scams, and AARP has a checklist of steps to take when a loved one dies.
