Identity Theft is a Concern Even after Death

The Federal Trade Commission estimates that up to 9 million people are victims of identity theft each year, and the crime isn’t restricted to the living. Yes, even the deceased have their identities stolen and used to open credit card accounts, among other things. Of course, the deceased don’t have to deal with the aftermath of a stolen identity. It’s their loved ones who have to go through the painful loss all over again as they work to clear up the mess.

Unfortunately, loved ones might not find out about an identity theft until credit card bills start coming in the mail and bill collectors begin making phone calls. Or, they might not find out at all. That’s what identity thieves are hoping. That way, they can open new accounts and run up current ones without ever being detected.

How Thieves Get Personal Information from the Deceased

You’d think it would be hard to get enough information from a deceased person to steal an identity, but it’s not. The personal information needed to open a credit card account isn’t that difficult to come across. Previous addresses, birth dates, and Social Security numbers can all be found with a few dollars and a little effort. For example, several online genealogy websites allow you to order information from the Social Security Death Index. And according to the Identity Theft Resource Center, it’s not uncommon for relatives of the deceased to steal the identity.

Shouldn’t banks know the “applicant” is already decreased? There’s a federal process where banks and other financial institutions are notified of a death, but thieves might get to a particular bank before it’s been notified. Also, the news never reaches some businesses, leaving them little way to know that they’re not giving credit to the right person.

Preventing Identity Theft of the Deceased

You can prevent identity theft of a decreased loved one by alerting the credit bureaus – Equifax, Experian, and TransUnion. That way, their credit file will be updated with a deceased alert. When someone tries to apply for credit with a financial institution that pulls from the credit bureaus, the business will get notification that there’s fraud happening. You can even include a request to be notified whenever someone applies for credit in your loved one’s name.

Another step is to notify the Social Security Administration of the death as soon as possible by calling 1-800-772-1213 from 7 a.m. to 7 p.m. The SSA will update the Death Master File, which eventually transmits out to the financial industry (though takes several months).

Close all open credit card accounts, letting them know about the death and providing a copy of the death certificate. You should also notify all other banks and institutions with which your departed loved one had a financial relationship. This includes all of his or her creditors, stock brokers, banks, and mortgage companies.  Make sure they mark the account holder as deceased in their records.

Consider signing up on the DMA's Deceased, Do Not Contact List. This doesn't cost anything and will reduce, if not stop completely, marketers from sending offers of credit and insurance to the deceased within three months.

Avoid printing the complete date of birth in the obituary. Instead, leave out the day and month and only print the year. This makes it harder for would-be thieves to get the necessary personal information to steal an identity.

If your loved one does become a victim of identity theft, you can typically provide a copy of the death certificate to clear up the matter. It’s also a good idea to report the theft to the Federal Trade Commission, your state Attorney General, and local law enforcement agencies. You are not responsible for paying for fraudulent charges made as a result of identity theft.