If death and taxes are inevitable, so too is credit card fraud and identity theft.

Now identity thieves are taking advantage of a person’s death by attaching themselves to a deceased victim’s Social Security number and gaining access to his credit.

Grieving family members often place a low priority on organizing a deceased loved one’s finances, reviewing wills, and contacting financial institutions. In fact, family members often take months or years to alert creditors, banks, and attorneys of someone’s death.To say the least, continuing with normal day-to-day activities is difficult after a loved one dies. Grief and sorrow replace resourcefulness and practicality. And while most people sympathize with the aftermaths of death, identity thieves thrive on this debilitating pain.

“Unfortunately, thieves have easy access to a deceased family member’s personal information,” said Alexis Martin Neely, an estate planning attorney and author of Wear Clean Underwear: A Fast, Fun, Friendly-and Essential-Guide to Legal Planning for Busy Parents.

Identity thieves access their information in a number of places. The United States Social Security Administration keeps a database of death records called the Social Security Death Index. The SSDI can be accessed for free, and it includes the deceased person’s birth date, death date, last place of residence, and, surprisingly, Social Security number. And a deceased person’s application for Social Security card, which includes birth place, father’s name, and mother’s full maiden name, can be ordered from the Social Security Administration.

“Couple this information with newspaper obituaries and wills, which are open to the public, and thieves have more than enough information to impersonate a deceased family member,” said Neely. Aggravating matters, dishonest family members, friends, or coworkers aware of a loved one’s illness or pending death have been known to take advantage by assuming the identity of a loved one who dies.

“Identity theft becomes a big problem during the probate process,” said Neely. “If someone steals a deceased family member’s identity and then racks up credit card charges in the decedent’s name, the courts might allocate a portion of the estate to that creditor. And perhaps more troublesome are the harassing phone calls a widower might receive about post-due bills. And this is the last thing a grieving person wants to deal with.”

To prevent a deceased loved one’s identity from being stolen, be sure that you, your lawyer, or your executor follow these steps:

1. Obtain at least ten copies of the official death certificate, and send one to all creditors with a letter stating that the account should be closed.

2. Contact the three national credit-reporting bureaus listed below and ask them to place a deceased alert on the person’s credit report. Provide the original copy of the death certificate, as well as a letter that includes the name and Social Security number, last known address, the last five years of addresses, date of birth, and date of death.

3. Upon receiving a death certificate, request copies of the deceased family member’s credit report from all three bureaus:

Experian
PO Box 1017
Allen, TX 75013
(888) 397-3742

Equifax
P.O. Box 740250
Atlanta, GA 30374
(800) 525-6285

TransUnion
P.O. Box 6790
Fullerton, CA 92634
(800) 680-7289

Check if any accounts are listed as open.

4. Notify all banks, mortgage companies, credit card companies, stock brokers, loan/lien holders, and any other relevant financial. If required, send a copy of the death certificate. If the account is closed, request that it be listed as: “Closed. Account holder is deceased.” For any jointly held accounts, ask that the decedent’s name be removed from the open account.

5. Notify any other agencies or companies with whom the decedent was involved, such as insurance companies (health, life, and automobile) and membership programs (gyms, libraries, country clubs). Call all utility companies to transfer or cancel services. Contact the Social Security and Veteran’s Administrations, if applicable, as well as the Department of Motor Vehicles.

6. Neely suggests an additional step. By establishing a living trust, a person can make sure his or her estate remains private. Unlike a will, the details of a trust are not open to the public. This establishes a level of security that can safeguard a person’s estate.

To deal with stress and focus on what is truly important-moving through the cycle of grief-family members might want to hire legal counsel to act as executor who handles all notifications.

By making sure these steps are immediately taken after a loved one has passed, a family will reduce a thief’s opportunities.

If you suspect that the decedent’s personal information has been compromised, the spouse or executor should:

1. Cancel all accounts that have been opened using the decedent’s name and Social Security number. Contact each credit card company by phone and follow up with a letter. Request that the account be flagged as: “Closed. Account holder is deceased.”

2. File an Identity Theft Complaint with the Federal Trade Commission (FTC). The FTC can be contacted by phone at (877) 438-4338 or in writing at:

Identity Theft Clearinghouse
Federal Trade Commission
600 Pennsylvania Avenue, N.W.
Washington D.C. 20580

3. Contact the police department and file an Identity Theft Report.

4. Call and report the incident to the three national credit-reporting bureaus: Experian®, Equifax®,, and TransUnion®,. Send copies of the Identity Theft Report, the Identity Theft Complaint, and an original copy of the death certificate to each of the three credit-reporting bureaus with all supporting material. Request that the following alert be placed on each of the three reports: “Deceased. Do not issue credit. If an application for credit is made, contact the following person immediately: [insert name and contact details of the spouse or executor].”

“The number of thieves willing to take advantage of a tragic situation is shocking,” said Neely. “And identity theft only prolongs the grief. But by preparing and buffering against fraudulent activity, a family can begin to heal.”

– Writer Jocelyn Baker contributed to this article

Related posts:

1. Is There Anything Else I Can Steal From You?

Tagged as: Credit, Credit Bureau, credit card, credit report, credit score, equifax, experian, Identity Theft, TransUnion Credit Bureau

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