Even the Dead Can Be Fraud Victims

Source: AARP.org | April 30, 2007

With so many recent reports of scam artists trying newer and sneakier ways to separate us from our money, all of us must constantly be aware that we are potential victims of fraud.

We've all been warned to watch out for telephone callers who ask for personal financial information, or fast talkers who try to get us to sink our money into some type of quick-cash investment scheme. But while we're on guard for some types of scams, others that we never thought existed could be in the works right under our noses.

One of the ways scammers are working to get our money is by trolling through obituaries, looking for names, addresses and other information they can use to establish a bogus line of credit. They buy Social Security numbers and other personal data—such as credit histories—of the recently departed for as little as $15 on the Internet.

"About 400,000 checking accounts were opened in the names of deceased people in 2004," says Jay Foley of the Identity Theft Resource Center, a consumer advocacy group. The goal is often to open credit accounts in the names of the dead.

Car loans valued in the millions of dollars can also be obtained this way. When the deadbeat scammers default on their payments, their debt appears on the credit histories of the dead. In such cases, surviving family members are unlikely to be held liable for the debt, but they may pay a price—in time and money—to unsnarl the credit and bank records of their relatives.

So how can you prevent yourself from this type of fraud?
According to an article in a recent AARP publication, there are several steps you can take.

For starters, when a member of your family dies (or a friend, if you are the executor) don't give addresses in the obituary. Second, don't give the person's birth date. Giving the year is fine; just don't give the month and day. When you do that, it makes a would-be swindler's job harder.

Third, send copies of the death certificate to all three credit-reporting bureaus (that's Equifax, Experian and TransUnion). Also send copies of it to every bank or other credit card issuer. You should also contact the state Department of Motor Vehicles, requesting that they cancel the person's driver's license or identification card.

Finally, a few weeks later, request credit reports from each of the credit bureaus. That way you can discover whether anyone has managed to steal the dead person's identity despite your measures. And if they have, you should file a criminal complaint and send copies of the death certificate to any bank or other business that has been swindled.

All Wisconsin citizens should feel safe and well protected against all types of fraud. Knowing some of the schemes and the safeguards against them in advance can help keep us all one step ahead of the scammers.

If you are interested in becoming an AARP Wisconsin Fraud Fighter Volunteer, contact Jeanne at the AARP Wisconsin state office. Toll free at 1-866-448-3611.

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