Identity theft and the dead

Coping with the loss of a loved is undoubtedly one of life’s most painful experiences. The last thing a bereaved family needs to deal with whilst mourning their loss, is to find that an identity thief has taken advantage of their loss and has used their loved one’s information to drain the estate of its assets. Fraudsters will try to take advantage of a family in mourning, distracted at a trying time to cause harm in this way. Here are some of the steps that you can take to protect the identity of a deceased loved one, and the sooner after their death, the better.

The deceased can be particularly vulnerable to identity theft because it can take much longer for any fraudulent activity to be detected than if they were alive. Try to refrain from including too much identifying information when you write the obituary. What might seem like innocuous details, such as such mother’s maiden name, residential address, ancestry, birth date, death date are just the kind of leads that can be used fraudulently for a range of ills from setting up new accounts in the deceased person’s name to absconding with property. Whilst it is important to honor the deceased and announce the death to the public, try to avoid giving away all their personal information.

Secure sensitive documents quickly. Death certificates are very sensitive documents; make several copies of the original and keep all securely. Because of issues of security you will find that, many organizations, including banks and other financial institutions will insist upon sighting the original whilst they will retain certified copies to update their records.

There are many personal and financial documents that must be found and secured immediately after a loved ones demise. Their home should be quickly secured to ensure that important documents such as bank statements, title documents, cheque books, ID cards and other valuables are not left easily accessible. There have been cases where thieves have broken into a deceased person’s home whilst everyone is attending the funeral. It is also important to limit the number of people who have access to the deceased’s personal papers.

Be proactive about notifying various entities with which the deceased was involved during his or lifetime of their passing; financial institutions sometimes aren’t aware of a death for several months simply because they have not been officially notified by the family. In that time criminals can have a free reign to open accounts, get identification cards, and do much damage using a dead person’s identity.

Put together a list of all the deceased person’s accounts and without delay, notify all the companies where the deceased had a financial relationship. This might include banks, stockbrokers, investment companies, their pension fund administrator and other financial institutions where the deceased had a relationship. In some cases an original death certificate may be required. The “account holder is deceased” will be clearly stated as the reason of closure so the accounts cannot be reopened and used by identity thieves.

All outstanding debts will have to be resolved by the executor before the account can be closed or the deceased person’s name removed from the account. Joint accounts should be closed and the balance transferred to the surviving account holder’s name. Other accounts that the deceased operated may also need to be closed, balances transferred to beneficiaries or newly created estate account. Your lawyer will be able to advise exactly how all this should be handled and what documents are required.

Sadly, there are numerous cases of identity theft committed by members of the deceased’s family as they often have ready access to personal and financial information necessary to commit identity fraud; this might be a relative who is in financial difficulty, or a child that has sense of entitlement and feels that they were treated unfairly in the will or estate planning. For that reason, and particularly with families with complicated situations it is important that the critical identifying information of a deceased is available to only a handful of people. Ideally one trusted member of the family should be the point-person for closing accounts, collecting documents, and so on and who is immediately available to start dealing with estate matters.

Whilst it is indeed a difficult time to have to deal with a deceased person’s finances or personal information so soon after their death, the current reality is that the identities of deceased individuals are increasingly vulnerable to fraudulent attack. Unfortunately, in a world where identity theft is a fast growing crime, it is important to do all you can to protect your loved ones identity.

Nimi Akinkugbe has extensive experience in private wealth management. She seeks to empower people regarding their finances and offers frank, practical insights to create a greater awareness and understanding of personal finance.