How To Avoid Scams After the Death of a Loved One

When it comes to making money, scammers don’t think about the people they are victimizing. All they focus on is increasing their income by whatever means necessary.

That said, certain groups of people are at a higher risk of being targeted than others, and those who are in mourning are one of the categories of people that scammers go after the most. Scammers are of the opinion that people who are grieving will be more likely to let their guard down, and to be fair, this is not an inaccurate assumption.

When you’re managing your grief, it’s not unheard of to be easily distracted, get confused more often, or find yourself not thinking as clearly as you normally would. Due to being in such a vulnerable state of mind, you'll likely be more willing to trust people, which can result in you giving away money or information — either on purpose or by accident — if folks around you seem to be helping you out. That’s why it is so important to take additional measures to protect yourself in the aftermath of losing a loved one.

Here are some ways to prevent yourself from becoming a victim:

• Be careful about whom you talk to and what you talk about on the phone. Only answer phone calls from people whose names and numbers you trust. Scammers often fake their names and use phone numbers that are not theirs to disguise their identity as well as their location. They might call you and offer to file a claim for life insurance policies, disabilities, or annuities, but you should politely decline. They may try to convince you that they are selling a funeral policy or offering you money so that you can cover funeral and burial expenses, but do not believe them. It's a setup.
• Keep an eye out for tax-related scams. Let’s say someone calls you to say that you need to pay taxes relating to your inheritance or an estate. They’ll likely threaten to pursue legal action if you do not comply. Sometimes, they will even go so far as to say that you are at risk of losing the rights to your inheritance if you don’t pay them right away. Just know that none of this is true. Nobody official — like the IRS — will call you to discuss the tax that you owe. All communication from trustworthy parties will be conducted via physical mail.
• Look out for memorial gifts and associated scams. Don’t let scammers convince you that your loved one left a memorial gift behind. They will lie to you about the memorial gift, which is usually something like a thumbprint pendant, and they will say that all you have to do in order to receive the gift is pay them — but this is not true.
• Maintain a copy of all documents and take notes as you go. If you file an insurance claim on behalf of your loved one, make sure you keep all of the paperwork associated with the claim from the company.
• Write down the names of the people you talk to, and jot down some details to summarize the conversation you had. If you think your family member had a life insurance policy but you're not sure where to find it, you can use the National Association of Insurance Commissioners’ Life Insurance Policy Locator Service.
• Do not give out personal information to just anybody. Don’t include too many personal details when putting together an obituary or posting about your deceased loved one on social media. Scammers will take the details that you put out there to steal your family member’s identity. They will also utilize that insight when pretending to be a debt collector. Instead of trusting anyone who tells you something, take a moment to call the bank, reach out to insurance companies, and inquire with the Social Security Administration.
• Also, make sure you notify all of them about the death of your loved one. You can also ask them about the protections they have in place to shield personal information if you’d like additional peace of mind.
• Double-check the validity of charities before donating to them. If someone calls and asks if you're willing to give money to an organization, fact-check their statements before you even consider sending money. Make sure that their claim of raising funds for someone who has died is accurate in order to prevent yourself from being the victim of a scam.

How to spot a scammer
Scammers will often rush you when you’re answering questions or trying to make a decision. They tend to ask for Social Security numbers as well as the bank routing and checking account numbers of those who have passed away.

It’s not unheard of for scammers to mention inheritances, claim that you owe certain fees, or propose the idea of giving you access to funds that you can use to pay for expenses associated with your loved one's death. They might even outright tell you that they need access to your deceased loved one's accounts while threatening to pursue legal action if you do not grant them the permission they seek.
Scammers will often state they are calling from government agencies or companies that the deceased party did business with when they were still alive. Oftentimes, in doing so, scammers will simultaneously request the credit card information of the person who died.

However, do not under any circumstances give them the information they are requesting. Scammers like these are merely trying to steal the identity or the money of the deceased, if not both.

To protect your loved one’s identity to the best of your ability, report their death to all three credit bureaus immediately. This will prevent scammers from opening new accounts in the dead person’s name.
​
While scams are all too common following the death of a loved one, you don’t have to accept that you'll be scammed no matter what you do. Instead, be proactive and protect yourself by erring on the side of caution. Verify any information you’ve been given or asked to provide, and never give details to people you don't know.

Above all, it’s best to work closely with qualified estate and financial professionals. They can guide you along the way and help you identify scams as soon as they arise.