Deceased Identity Theft – Victimizing the Dead

Deceased Identity Theft is on the rise. Identity thieves will go to great lengths to steal personal information. But how low are they willing to go? They will steal information from the recently deceased.

Assuming the Identity of a Deceased Person Can be a Profitable Venture

Victimizing the dead by stealing their identity is often referred to as ‘Ghosting’. Understand that Identity Theft happens in a variety of ways – including Tax ID Theft, Medical ID Theft, Financial ID Theft and Employment Fraud. Ghosting can encompass any or all of these different types of ID theft.

Deceased Identity Theft
You Must Protect Your Loved Ones

Here are some examples of what these criminals can do with the information stolen from a recently deceased person. File phony tax returns, apply for loans, establish fraudulent credit accounts, create fake driver’s licenses, apply for employment and file false medical claims. Ghosting can also result in creditors coming after the heirs of a deceased loved one or create problems with their estate.

How Do Thieves Get the Information?

Identity Thieves often glean a deceased person’s information from the Social Security Administration’s Death Master File. The Social Security Administration (SSA) maintains a national file of reported deaths for the purpose of paying appropriate benefits. The Death Master File contains the following information: Social Security number, name, date of birth, date of death, State of last known residence, and zip code of last lump sum payment. This information is a virtual gold mine for an identity thief!

In addition, relatives and funeral directors also notify States of recent deaths and then the States notify the SSA. When the SSA receives a death notice, it will flag the deceased person’s Social Security number as “inactive.”

Keep in mind that thieves can also glean a deceased person’s information from hospitals, funeral homes, social media and obituaries.  Because it can take weeks or months to process a death, thieves have plenty of time to commit fraud before it is ever detected.

Signs of Deceased Identity Theft

Calls from a creditor or collection agency on an account opened or used in the deceased’s name after death. If you discover such signs, contact the affected creditor or collection agency in writing, explaining that the account was opened or used fraudulently. Surviving spouses and children can also be liable if they shared accounts with the deceased.

Deceased Identity Theft Stolen Info
Freeze Out the Thieves

Reduce the Risk of Deceased Identity Theft:  

  • Send copies of the death certificate to all three credit bureaus asking them to flag the person’s credit report with the following alert: “Deceased – Do Not Issue Credit”.
  • Request a copy of the credit report of the deceased person with all three credit bureaus. You’ll need to do this in writing. The report will list all active credit accounts. Be on the lookout for any questionable activity.
  • Place a credit freeze with each of the three credit bureaus to stop thieves from opening any new credit accounts in the name of the deceased.
  • Send the IRS a copy of the death certificate to prevent Tax ID Theft. The IRS will then flag the account to reflect that the person is now deceased. Go to irs.gov and enter “Deceased Taxpayers” in the search box.
  • Notify banks, credit card companies, loan holders, financial institutions and mortgage holders to close any accounts. Also notify medical professionals and health insurers too.
  • Notify the Motor Vehicle Department to take their Driver’s License out of circulation.
  • Avoid putting too much information in an obituary. Don’t give a birth date, current address, mother’s maiden name or other identifying information that could be useful to identity thieves. The same goes for social media.

It is devastating for a grieving family to have to go through the process of proving to various agencies that their loved one is indeed dead. The emotional impact of unwinding the mess, stalls the grieving process for the family. Therefore, once a loved ones passes away, it’s important to designate someone to take immediate action to help secure their personal information from these heinous criminals.

If you want to know more about how to place a credit freeze, read this