Dead Yet Spending: The New ID Theft

The crime of stealing ones identity by impersonating the dead is on the rise. In one documented case, a woman working in a hospital was providing personal information of dying patients to her accomplice. Then the accomplice would go and apply for credit cards using the stolen information. So, while the patients lay dying a thief was out spending in their names.

Such identity thieves look for pertinent information in obituaries such as birthday, current residence and even the name of the hospital where a person died. Then thieves check the database of the hospital to get more information (like social security numbers) so they can more easily pose as the person. These thieves also check out the Social Security Death index so they can target newly dead victims and steal their identities.

Some identity thieves do this so they can simply defraud the dead person and make some quick cash. Others are looking to actually assume a new identity and want to pose as the deceased person to avoid illegal immigration and other legal hassles they may currently be facing. In some cases, the identity thieves may even be family members who felt jilted by the way the assets were divided or who was in financial straights and wanted out.

Although the death of a loved one is never an easy process, it can become a far more painful—and prolonged—process if your loved one’s identity is stolen and a resolution must be reached before assets can be divided. In cases where one spouse survives another, the remaining spouse stands to be taken advantage of by savvy identity thieves if he or she isn’t careful. There are primarily eight things you can do to help protect the identity of a deceased loved one. The sooner these identity theft protection steps are taken, the more likely it is that your loved one will not become a victim.

1. Make sure you do not disclose extra information when you place an obituary. There is no need to publish the birth date and place nor the address. This makes it easier for identity thieves to steal a person’s identity and there are even cases where other thieves have used the address to break into a person’s house while everyone is attending the funeral.

2. Make copies of the death certificate immediately after you get the original. Most banks and other financial institutions require a copy to keep their records up to date.

3. Without delay, you must contact all banks, credit card companies, credit unions, mortgage companies, loan holders, stock brokers and other financial institutions where the deceased had an account. If you decide to close these accounts, make sure that they put "Account holder is deceased" as the reason of closure so the accounts cannot be reopened and used by identity thieves.

4. Report the death at once to the three main credit reporting agencies and mail them a copy of the death certificate by certified mail asking them to put a "deceased" alert on your loved one’s credit report. Their addresses and phone numbers are :

Equifax:
Equifax Information Services LLC
Office of Consumer Affairs
P.O. Box 105169,
Atlanta, GA 30348
Phone No. : 888-766-0008

Experian:
PO Box 9701
Allen, TX 75013.
Phone No. : 888-397-3742

TransUnion:
PO Box 6790
Fullerton, CA 92834.
Phone No. : 800-680-7289

5. Immediately inform the Social Security Administration about the death by calling 800-772-1213 anytime between 7 a.m. to 7 p.m. on weekdays. Those hard of hearing may call 800-325-0778.

6. Inform the Department of Motor Vehicles of the death. Take the deceased’s driver’s license and a copy of the death certificate to the office to cancel it from the state’s system.

7. Make sure that documents like credit card and bank statements and water or electricity bills are shredded before throwing them in the garbage can.

8. Several weeks after a loved one’s death, visit www.annualcreditreport.com to obtain a free copy of his or her credit report to make sure no fraudulent activity has been taking place. Being proactive could save you a lot of time and energy in the end.

Unfortunately, in a world where identity theft is the fastest growing crime in America even the dead remain vulnerable to becoming victims. Make sure you do your part to protect your loved ones, and to prepare those you will leave behind to protect you once you are gone.