Protecting a Deceased Person's Identity

At a Glance-

• Thieves target the weeks right after a death, when no one is watching the accounts.
• The first steps cost nothing and need no court order: a careful obituary, a secured home, a protected phone line, and controlled death certificates.
• Credit bureau notices, mail control, and account changes follow as soon as someone has authority.
• Never "close" a retirement account. Notify the custodian and let the beneficiaries handle the transfer.
• Keep a log. If fraud surfaces later, it shows the estate acted promptly.

Why the Weeks After a Death Are Dangerous

Identity theft does not end with death. The weeks after a death are among the most vulnerable for a person's personal and financial information. Criminals read obituaries, scan public records, and exploit the delays that come while a family grieves and an estate is organized. A stolen Social Security number, a redirected piece of mail, or an overlooked online account can be used to open credit, file a false tax return, drain accounts, or even attempt a forged deed.

The reason is simple. The victim can no longer watch the accounts or dispute charges, and the family is overwhelmed. The longer the gap between the death and the lockdown, the bigger the opportunity. Acting early is far easier than unwinding fraudulent accounts, defending collection actions, or recovering stolen funds later.

Who Has Authority, and When

A fiduciary owes the estate reasonable care, loyalty, and confidentiality. In practice, reasonable care includes prompt, sensible steps to keep the decedent's identity and assets out of a thief's hands.

The catch is authority. A power of attorney ends at death, and so does a guardian's authority to act. After a death, the people who can act are the successor trustee, for assets held in a trust, and the executor, administrator, or commissioner appointed by the probate court.   In Ohio, the court may appoint an executor, an administrator, or a commissioner; the paper is Letters of Authority.  In Missouri, the he court may appoint an executor or an administrator; the court paper is the court paper is Letters Testamentary or Letters of Administration.

If there is a trust, the successor trustee should be able to monitor, track, and document activity on the trust's assets right away. If that isn't sufficient, for whatever reason, consider early the appointment of a commissioner, administrator, or executor through the probate court, but seek legal counsel. Common reasons include assets outside the trust, an institution that insists on court papers, and the post office, which forwards a deceased person's mail only for an appointed executor or administrator. 

Until someone is appointed, the family can still do a great deal. The steps below are grouped by timing, starting with the ones that need no authority at all.

The First 72 Hours

These steps need no court order.

• Write a careful obituary. Leave out the full date of birth, the mother's maiden name, the street address, and other details that answer common security questions. Never publish the home address alongside the service times.

• Guard the home during services. Burglars watch for funerals and visitations. Have someone stay at the house.

• Secure the residence. If the home will be vacant, tell the insurer, because many policies limit coverage after a period of vacancy. Remove valuables and papers, change or add locks, use timers and outside lighting, and consider cameras. When the house is listed for sale, avoid lockboxes that hold keys.

• Collect the wallet, checkbooks, and cards. Lock them up. Note who else had access to cards, keys, or passwords, such as caregivers, cleaners, or relatives.

• Keep the phone line active. The decedent's cell number often receives the login codes for bank and email accounts. Keep paying the bill, and ask the carrier for a port-out PIN or number lock to block SIM-swap theft.

• Secure devices, but don't wipe them. Phones, computers, and tablets hold photos, records, authentication apps, and sometimes crypto keys. Wiping them can destroy estate property. Store them safely until the contents are preserved and the fiduciary approves.

• Control the death certificates. Many states print the Social Security number on the certificate. Order only the certified copies you need in a single request, and have them delivered to the funeral home or the fiduciary rather than to an empty house. You should request return of the originals, even if mailed, but in the latter case enclose a self-addressed stamp envelope for return.  Keep track of who has one.  Ohio law says the certificate contains the SSN. In practice, copies issued to the general public omit it for five years unless the requester is eligible and asks for it.

• Confirm that Social Security knows. The funeral home usually reports the death to the Social Security Administration. Benefits are paid a month behind, so the payment that arrives in the month after death must be returned. Don't spend it.

The First Two Weeks

• Notify the credit bureaus. Write to Equifax, Experian, and TransUnion. Include a copy of the death certificate and proof of your authority. Ask that the file be marked "Deceased – Do Not Issue Credit," and request a copy of the decedent's credit report. Each bureau says it passes the notice to the others. Write to all three anyway, and confirm. Bureaus accept a spouse or an executor; ask whether they will accept a successor trustee.

• Don't forget the fourth bureau. Innovis will add a deceased statement on request.

• Ask about a freeze. The deceased notice is the main tool. Some bureaus will also place a security freeze on a decedent's file. Ask.

• Flag the specialty agencies. ChexSystems and Early Warning Services track checking and savings accounts. NCTUE tracks phone, cable, and utility accounts. Send each a death certificate and proof of authority, and ask for a deceased notation or a freeze.

• Review the credit reports. Look for unfamiliar accounts and recent inquiries. They may show that fraud is already under way.

• Take control of the mail. This step needs an appointed executor or administrator. The Postal Service redirects a deceased person's mail only in person, and only with proof of appointment; a death certificate alone is not enough (USPS). Ask the post office about any holds or forwarding orders the family did not request.

• Stop the junk mail. Register the decedent on the DMAchoice Deceased Do Not Contact list to cut off pre-approved credit offers.

• Sign up for property fraud alerts. Many Ohio counties will email you when any document is recorded under a name you enroll, including Franklin, Summit, and Stark. Enroll both the decedent's name and the trust's name. Check with your county recorder or fiscal officer.

• Cancel the driver's license and passport. Surrender the license or state ID to the BMV so a duplicate can't be issued. Mail the passport to the State Department with a copy of the death certificate to cancel it.

• Cancel automatic payments. Stop subscriptions, automatic payments, and recurring transfers that are no longer needed.

The First 90 Days

Most of these steps need formal authority.

• Get an EIN/TIN. The estate needs its own Employer Identification Number (EIN) or Taxpayer Identification Number (TIN). So does a trust that became irrevocable at death. Open estate or trust accounts under the new number and move assets promptly. This shortens the time assets can be reached through the decedent's old information.  For help, see our articles: "Sorting the confusion between SSNs,TINs, ITINs, and EINs" and  "Retain an Attorney or Accountant to Seek and Obtain a Taxpayer Identification Number for a Trust,"

• File Form 56. IRS Form 56 tells the IRS who the fiduciary is.

• Handle joint accounts correctly. A joint account with survivorship belongs to the survivor. Retitle it in the survivor's name; it does not go to the estate.

• Retitle estate and trust accounts. Individual accounts with no beneficiary designation move to the estate or the trust. Ask each institution to mark the decedent's records "Deceased."

• Do not close retirement accounts. IRAs, 401(k)s, and annuities pass to the named beneficiaries. Cashing one out can trigger all the income tax at once and wipe out the beneficiaries' options. Notify the custodian, and let the beneficiaries handle the transfer. Investment accounts should generally be transferred, not sold in a hurry.

• Close the credit cards. Close individual credit cards, ask that each be marked "Deceased," and destroy the cards.

• Notify insurers, pension plans, and annuity companies.

• Notify other agencies as needed. These include the Department of Veterans Affairs, professional licensing boards, and, where relevant, U.S. Citizenship and Immigration Services. Voter rolls are usually updated from death records; contact the board of elections if they aren't.

• Secure the online accounts. Email is the gateway to password resets. Keep the main email account open only as long as it is needed for login codes, then close it. Change passwords and turn on two-factor authentication for any account that must stay open during administration, and close the rest. Memorialize or remove social media profiles; public profiles supply personal details and photos thieves use. For more, see my articles on digital assets in your estate plan and the digital assets inventory instructions.

Through the First Year

• File the final return promptly. A filed return is the best defense against a fraudulent refund claim. If the IRS rejects an e-filed return because the Social Security number was already used, file on paper with Form 14039, the Identity Theft Affidavit.

• Watch the IRS mail. Look for notices about returns no one in the family filed.

• Review medical statements. Check Medicare Summary Notices and supplemental-plan statements for services billed after the date of death. Report them to Medicare at 1-800-MEDICARE.

• Recheck the credit reports. Pull them periodically for at least a year.

• Report fraud quickly. If fraud surfaces, report it at IdentityTheft.gov and to local police. Send the creditor a written dispute with a copy of the death certificate.

• Keep a log. Record every institution notified, the date, the method, and the confirmation number. If fraud surfaces later, the log shows the estate acted diligently.

The free notices above block most new accounts. The tools below add an early warning. Some are free; some are paid subscriptions.

Tools That Watch for Fraud After a Death

Tool	What it watches or blocks	Cost	Who can use it	Watch out for
Equifax, Experian, TransUnion	“Deceased” notice on the credit file blocks new credit; you can request the decedent’s report	Free	Spouse or executor; send a death certificate and proof of authority by mail	Each bureau says it shares the notice with the others. Write to all three anyway, and confirm.
Innovis	Fourth national credit bureau; adds a deceased statement to the file	Free	Spouse or legal representative; court papers if not named on the death certificate	Often overlooked because it isn’t one of the “big three”
ChexSystems and Early Warning Services	Checking and savings account applications and history	Free	Fiduciary with a death certificate and proof of authority	No published process for decedents; call or write and ask for a deceased notation or a security freeze
NCTUE	New phone, cable, and utility accounts	Free	Fiduciary with a death certificate and proof of authority	No published process for decedents; ask for a freeze
County property fraud alerts (for example, Franklin, Summit, Stark)	Emails you when any document is recorded under a name you enroll	Generally free	Anyone; enroll the decedent’s name and the trust’s name	Covers one county only; people with the same name trigger false alerts
Home Title Lock	Monitors title and mortgage records; offers help restoring title after fraud	$19.95 a month, or $227.40 a year	Homeowners; ask whether it will enroll a property held by an estate or trust	Despite the name, it does not lock the title. It alerts. A free county alert may cover the same ground.
EverSafe	Flags unusual activity across bank, investment, and credit card accounts, credit files, and real estate	Monthly subscription	Marketed to older adults, families, and fiduciaries	Built for monitoring during life. Confirm it can be used during estate administration before you subscribe.
Bank and brokerage alerts	Texts or emails for withdrawals, transfers, address changes, and new payees	Free	The fiduciary, once the accounts are in the estate’s or trust’s name	Turn on every alert type offered, not just the defaults
DMAchoice Deceased Do Not Contact	Removes the name from marketing lists, including pre-approved credit offers	Free online; $1 by mail	Family member or fiduciary	Can take up to three months to take effect

Most commercial monitoring services were designed for living customers. Before paying for one, confirm that it will enroll a deceased person's name, an estate, or a trust. Prices and terms are as posted by each provider and may change.

Bottom Line

Families already dealing with grief should not have to become full-time fraud investigators. You don't need to do everything on the first day. Start with the free steps that need no authority: the obituary, the house, the phone, and the death certificates. Then the credit bureaus and the mail. Then the accounts. If the trust can't reach everything, seek a court appointment early rather than late, BUT CONSULT WITH AN ATTORNEY; there are many estates that benefit from waiting six months from the date of death to open.  That's a whole different article.

A focused effort in the first days and weeks prevents the far larger problems that come when identity theft is discovered months later. It protects both the decedent's dignity and the estate's finances, and it leaves a clear record that the fiduciary acted with care.

Identity Theft: Credit Monitoring and Freezes (With Links to Credit Agencies)

While you can never definitively protect yourself from identity theft, there are steps you can take that make it harder for criminals to access and use your sensitive information. One such step is placing credit freeze requests with all three credit bureaus.

Credit Freeze vs. Monitoring

Credit monitoring involves scrutinizing your credit report for changes. These changes could include legitimate and/or fraudulent credit inquiries, new credit accounts, a new reported address or an account that has been turned over to collections.

There are credit monitoring services that will automatically notify you of changes to your report for a fee, or you can monitor your credit for free by requesting and reviewing your reports regularly. However, the disadvantage is that both these approaches are purely reactive. Monitoring only notifies you that you have already fallen victim to identity theft.

Preventive measures, such as a credit freeze, provide much better protection. Also known as a security freeze, this measure blocks access to your credit report and other information, thereby preventing new account fraud, which occurs when someone applies for new credit using your identity.

When someone submits a tenant application or credit application (for a loan or credit card), the creditor will request a copy of the applicant's credit report. If the credit report is blocked, then the creditor is unable to review it and will typically deny the application. Therefore, a credit freeze is a method of stopping fraudulent activity before it occurs.

Who Should Freeze Their Credit?

Data breaches are increasingly common and the likelihood that a person’s credit report and other sensitive information have already been exposed is high. Regardless, it is best be proactive about preventing identity theft, especially if you rarely need to grant a new creditor access to your credit activity and history. I strongly recommend that all consumers consider placing security freezes on their credit since recovering from identity theft can be a long and difficult process, and though there may be little expense resulting from a breach, whatever expense there is is almost certainly greater than the time expense necessary to implement a freeze.

When it comes to seniors and their family caregivers, extra protection is crucial. Seniors may suffer periodic long or short term incapacity or illness, during which they are unable to monitor their own credit report.  Seniors may be more distracted by grief and loss and are more susceptible to periodic or sustained cognitive impairment. Caregivers, too, deserve attention.  A busy family caregiver may not have the time or energy to monitor their own credit report, let alone their loved one’s credit activity. A credit freeze provides invaluable peace of mind.

A certain group of vulnerable consumers, regardless of age,  which includes incapacitated individuals and those who have been appointed a guardian, should absolutely be protected by a credit freeze. Since these consumers are unable to monitor their own credit or protect themselves from fraud, caregivers with durable financial power of attorney (POA) or court-appointed guardianship can request security freezes for their on their behalf.

How to Freeze Your Credit

The three nationwide credit reporting companies are Experian, Equifax and TransUnion. You must contact each of these bureaus to request separate freezes. Freezing security freeze with one of them is not sufficient, since creditors do not report to all three.

Each credit bureau permits consumers to request a security freeze online, by phone or by mail. You may also temporarily lift a freeze (aka “thaw” your credit) and permanently remove a freeze via these methods using the account and/or personal identification number (PIN) you have established with each bureau. To help you get started, the webpages and contact information for the three bureaus are listed below.

__________________________________________________________________

Experian Credit Freeze

1-888-EXPERIAN (1-888-397-3742)

Experian Security Freeze

 P.O. Box 9554 Allen, TX 75013

 Experian Credit Freeze Application

You can find a complete list of information/documentation that must be submitted with your written request at Experian.com.

__________________________________________________________________

Equifax Credit Freeze

1-888-EQUIFAX (1-888-378-4329)

1-800-349-9960 (automated line)

Equifax Information Services LLC

P.O. Box 105788

Atlanta, GA 30348-5788

Equifax Credit Freeze Application

When submitting a request by mail, you’ll need to fill out an Equifax Security Freeze Request Form and include copies of proof of identity and proof of address documentation.

__________________________________________________________________

TransUnion Credit Freeze

1-888-909-8872

TransUnion

P.O. Box 160

Woodlyn, PA 19094

Transunion Credit Freeze Application

Written requests should include your name, address and Social Security number as well as a six-digit PIN to associate with your TransUnion freeze.

FTC Report to Congress Details Fraud Reports from Older Consumers

The Federal Trade Commission (FTC) recently sent a report to Congress, Protecting Older Consumers 2018-2019: A Report of the Federal Trade Commission. The FTC "conducts research and analysis, publishes information about patterns and trends, and engages in coordinated efforts to protect older adults from financial loss and assist them with other consumer issues such as identity theft protection." The agency identifies "patterns and trends" and "works closely with stakeholders to learn about the top issues concerning older adults. According to the report, nearly 3.1 million consumers reported some form of financial scheme, 1.5 million reporting fraud, 444,383 reporting identity theft, and all others totaling 1.2 million. Consumers reported losing nearly $1.6 billion to fraud. About 45 percent of fraud reports filed in 2018 included consumer age information. Consumers who said they were 60 and older (older adults) filed 256,404 fraud reports with reported losses of nearly $400 million. 

Key findings from the 2018 data include:

• In 2018, older adults were still the least likely of any age group to report losing money to fraud, but their individual median dollar losses remained higher than for younger adults;
• Compared to 2017 numbers, reported median individual losses among consumers 60 and over increased, and the increase was particularly large for people 80 and over;
• Older adults were much more likely than younger consumers to report losing money on tech support scams, prize, sweepstakes and lottery scams, and family/friend impersonation;
• Phone scams were the most lucrative against older consumers in terms of aggregate losses, and online scams were a distant second;
• Gift cards became the payment of choice for scammers, but wire transfers persisted in the top spot for total dollars paid. 

There was good news in the report; the overwhelming majority of  fraud reports filed in 2018 by consumers 60 or older did not indicate any monetary loss.  Older adults filed "no-loss" reports about fraud they had spotted or encountered at nearly twice the rate of consumers ages 20-59.  Moreover, it remained true through 2018 that older adults were less likely than younger consumers (ages 20-59) to report losing any money to fraud.  This suggests that older adults may be more likely to avoid losing money when exposed to fraud, more inclined to report fraud when no loss has occurred, or a combination of these or other factors. The FTC fraud survey  found that the rates of victimization for the various categories of frauds included in the survey were generally lower for those 65 and older than for younger consumers. 

On the more bleak side of the data, older consumers who did report losing money, reported much higher individual losses. In addition, the median individual losses reported by older consumers rose significantly in 2018. In 2018, median reported losses were fairly stable for younger adults as compared to 2017, but increased for older adults. Consumers ages 80 and older reported the largest median losses of $1,700 as well as the largest increase as compared to 2017. The median dollar loss for this 80 and over age group was more than four times the median loss amount reported by consumers in their 20s and 30s and more than two to three times that of other age groups. This striking growth for people 80 and older was driven in large part by increases in reported median dollar losses on prize, sweepstakes and lottery scams, and family and friend imposter scams (often called the “grandparent scam”). For people ages 60-79, a surge in reports of losses to imposters posing as the Social Security Administration during the second half of 2018 contributed to the upward trend in median losses.

As the nation’s primary consumer protection agency, the FTC has a broad mandate to protect consumers from unfair, deceptive, or fraudulent practices in the marketplace.  It does this by, among other things, filing law enforcement actions to stop unlawful practices and, when possible, returning money to consumers. The FTC also protects the public through education and outreach on consumer protection issues. Through research and collaboration with federal, state, international, and private sector partners, the FTC strategically targets its efforts to achieve the maximum benefits for consumers, including older adults. Protecting older consumers in the marketplace is one of the FTC’s top priorities. Unfortunately, in numerous FTC cases, older  adults have been targeted or disproportionately affected by fraud. For example, the FTC has brought numerous enforcement actions in federal court to stop deceptive technical support schemes that affected older consumers. As the population of older adults grows,the FTC’s aggressive efforts to bring law enforcement action against scams that affect them, as well as provide useful consumer advice, become increasingly important.

The FTC submits an annual report to the Committees on the Judiciary of the United States Senate and the United States House of Representatives to fulfill the reporting requirements of Section 101(c)(2) of the Elder Abuse Prevention and Prosecution Act of 2017. The law requires the FTC Chairman to file a report listing the FTC’s enforcement actions “over the preceding year in each case in which not less than one victim was an elder or that involved a financial scheme or scam that was either targeted directly toward or largely affected elders.” Given the large number of consumers affected in FTC actions, this list includes every administrative and federal district court action filed in the one-year period. Appendix A to this report lists all of the FTC’s enforcement actions over the preceding year. In addition to the list, the FTC files this report to provide detail on the agency’s efforts to protect older consumers, including its research and strategic initiatives, its law enforcement actions that noted an impact on older adults, and its targeted consumer education and outreach.

Beware Social Security Scam

The Social Security Administration posted  a warning on its blog about a scam involving phishing.  According to the post, the scam begins with an email misrepresenting itself as a government-sponsored program "protecting" consumers from identity theft and financial fraud. 

According to the blog:

The subject line says 'Get Protected,' and the email talks about new features from the Social Security Administration (SSA) that can help taxpayers monitor their credit reports, and know about unauthorized use of their Social Security number. It even cites the IRS and the official-sounding 'S.A.F.E Act 2015.' It sounds real, but it’s all made up.

The blog post offers a couple of tips to identify communications a scam. If the email ended up in your junk folder, it could be a scam. Also, the post suggests you mouse over the URL and see if it is really from SSA, or from a .com site instead.

Always remember-if in doubt, don't click on the link and don't provide personal information.

Protecting Your Deceased Loved Ones From Identity Theft

We've all been warned about protecting ourselves from identity theft, but one group of victims can't take action to protect themselves—the dead. Identity thieves steal the identities of more than 2 million deceased Americans a year, according to fraud prevention firm ID Analytics. Fortunately, there are steps that you can take to discourage identity thieves from targeting a deceased loved one.

 

Part of the reason the deceased make prime targets for scam artists is that it can take up to six months for credit agencies to be notified about a death. As soon as possible, you should send copies of your loved one's death certificate through certified mail to the three major credit reporting agencies—Equifax, Experian, and TransUnion. Along with a certified copy of the death certificate, you should include papers certifying that you are the executor or person representing the deceased; the decedent's full name, date of birth, and Social Security number; the decedent's most recent address; and the date of death. You should also request that the credit bureaus put a "deceased -- do not issue credit" alert on the decedent's credit files.

In addition, you should send copies of the death certificate to any banks, insurers, credit card companies, or other financial institutions where the deceased had accounts. You should also cancel the decedent's driver's license by notifying the state motor vehicles department.

One way that identity thieves find victims is by looking through obituaries. When writing your loved one's obituary, try to avoid information that might be useful to identity thieves such as date of birth, mother's maiden name, or the decedent's address. Think about what information someone would need to open a bank account and avoid including that in the obituary.

Once the proper agencies and institutions have been notified, you should continue to monitor the decedent's credit report for a year to make sure there are no problems.  A free copy of the three credit agencies’ reports is available annually to executors or trustees.  Go to: www.annualcreditreport.com.

For more information from Bankrate about protecting a deceased relative from identity theft, click here.

CNA's Face Prison for Stealing Nursing Home Residents' Identities and Defrauding Government

Three former nursing home aides face prison time for stealing residents' identities and conning the government. The Georgia women obtained residents' personal identification information from the nursing home where they worked as certified nursing assistants, and they used the information to file fraudulent tax returns, according to court papers and evidence introduced at trial. The DOJ did not name the facility where the women worked.

One of the defendants, Kimberly Banks, was convicted after a one-week trial in January. She received a 192-month prison sentence on Thursday, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.

The other two defendants, Donalene Mosely and Arneshia Austin, entered guilty pleas to conspiracy prior to trial, according to the prosecutors. They received 37-month and 21-month prison sentences, respectively. The three former CNAs also have been ordered to pay about $275,000 in restitution.

Of course, repayment may not be forthcpming. The women used refunds from the fraudulent returns to make car and mortgage payments, buy products online, and throw a “red carpet party,” the Department of Justice stated in a news release. They raised more than $600,000 by filing nearly 200 false returns.

This is the second nursing home identification theft case to come out of Georgia recently. In January, Yolando Blount received a 27-year prison sentence for her role in a similar but unrelated scheme.