Identity Theft and the Deceased
About 700,000 Americans last year fell victim to identity theft, in which personal information is used by an imposter to obtain goods and services. Particularly disturbing is the theft of a person’s identity after he or she has died.
Identity thieves obtain information about deceased individuals in various ways. They may watch the obituaries, steal death certificates, or even get the information from websites that offer a Social Security Death Index file. These websites are supposed to be used for genealogy research but are sometimes used to steal an identity. Unfortunately, the thief may also be a family member who may be taking advantage of the situation or who has been using that identity for a long time already.
The problem is that financial institutions are not immediately made aware that their customer is deceased. It takes time for the Social Security Administration to transmit the Death Master File to the financial industry. Until the institution receives word that the individual is deceased, the account remains active. As of this writing, that file is not complete. It is based on information provided by consumers and some governmental agencies. Unfortunately many deaths do not appear on the list.
Until you notify the credit reporting agencies (CRAs) and creditors, they do not know of a death and accounts remain open. An active credit file will stay open for up to 10 years without activity. Thieves count on this and may try to attach onto the SSN of a deceased because of the length of time until discovery.
Everyone with a SSN is a potential victim - from a newborn on.
Steps to take when a loved one passes away to decrease identity theft risk
No matter what type of identity theft is involved, the result is a long and sometimes arduous road to recovery. The Identity Theft Resource Center (ITRC) recommends the following steps for all deaths, regardless of age. It is best to notify all entities by telephone and in writing. Send all correspondence certified, return receipt requested. Keep photocopies of all correspondence, including letters that you send.
- Obtain at least 12 copies of the official death certificate when it becomes available. In some cases you will be able to use a photocopy, but some businesses will request an original. Since many death records are public, a death certificate alone may not suffice.
- Immediately notify relevant (?) credit card companies, banks, stockbrokers, loan/lien holders, and mortgage companies of the death. The executor or surviving spouse will need to discuss all outstanding debts and how they will be dealt with. You will probably either transfer the account to another person or close the account. If you close the account, ask them to list it as: "Closed. Account holder is deceased."
- Immediately contact the CRAs and request a "deceased" alert be placed on the report. You may need to do this in writing. Form letters for this process can be found on the Theft Resource Center’s Web site, www.idtheftcenter.org. or www.idtheftcenter.org/vg117.shtml
- If there is a surviving spouse or other joint account holders, make sure to notify the company that the account needs to be listed in that surviving person's name alone. They may require a copy of the death certificate to do this, as well as permission from the survivor.
5. Contact the three credit reporting agencies.
- Equifax: PO Box 105069, Atlanta, GA 30348
- Trans Union: PO Box 6790, Fullerton, CA 92834
- Experian: PO Box 9595, Allen, TX 75013
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