How Fraud Raises The Dead

By Jane Mack | 13 December 2004

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One of Britain's fastest growing crimes involves the theft of a person's identity - particularly impersonating the dead.

It sounds incredible but last year 56,000 families discovered that a fraudster had masqueraded as a loved one after their death in order to take out credit cards and loans. And, according to the UK's Fraud Prevention Service (CIFAS), this distressing crime is increasing at a rate of 60% a year.

So what practical steps can relatives and executors take to protect the identities and reputations of the recently deceased? CIFAS says that until the government agrees to release death records to help them combat identity fraudsters, relatives and executors should take the following action:

• Don't include the age, date of birth or address of the person who's died in adverts announcing the death or funeral - it makes it easier for identity fraudsters to find their target.
• Notify the Inland Revenue, Department for Work and Pensions and finance companies as soon as possible after the death.
• Make sure when sorting out the dead person's belongings that pockets in clothes, handbags and wallets do not contain documents that could be used by identity fraudsters, particularly if sending them to charity shops.
• Shred unwanted paperwork such as bank statements, credit card receipts, council tax and utility bills before throwing them away - identity fraudsters really do go through dustbins looking for details about potential victims.
• If the dead person's home is now empty, redirect all mail to your own address and insist that all viewings of empty properties are accompanied - fraudsters have been known to organise viewings of empty properties with estate agents specifically to steal or collect mail.
• Sign up with the mailing preference service to stop direct mail, including offers of loans and credit cards being sent to the dead person. The Direct Marketing Association estimates 22 million items of direct mail are sent to dead people each year. Identity fraudsters use the details included in this mail to impersonate the dead.

Surveys by CIFAS suggest that about half of 'deceased' fraud is not identified at all and that cases are eventually written off as bad debt. And guess who pays for it? Yes, ultimately, you and me through lenders charging us more to recoup their losses.

And don't forget that you don't have to be dead to become a victim of ID fraud. Check your credit file regularly - at least once a year - to make sure that nothing untoward is taking place with your finances. In particular, look for entries from organisations you don't usually deal with as someone else may have borrowed money in your name. You can do this via the Motley Fool as we have partnered with Experian, one of the two big players in the credit reference market and they're offering a free 30-day trial of CreditExpert.

More:Keep Your Cards Safe and protect yourself from Identity Theft.