Ghosting Identity Theft: How To Protect Your Dearly Departed

Ghosting identity theft occurs when someone uses a deceased person's information for financial gain. Losing a loved one is hard enough to navigate as is, so having their identity stolen can create a devastating new set of challenges. The Federal Trade Commission (FTC) reports that consumers lost more than $12 billion to fraud in 2024 — the highest losses ever recorded — with identity theft making up a significant portion of that total. 

According to our identity theft statistics, 46% of people know someone in their personal lives who has had their identity stolen. Although consumers have become more diligent in preventing identity theft, fraudsters have also taken measures to steal the identities of the deceased. 

Continue reading to learn more about this form of identity theft and how you can protect your family member's information and data, even after they have passed on.

How does ghosting identity theft occur?

Identity theft occurs when someone steals your information and uses it to open credit accounts or make purchases, often for financial gain. This information usually includes your Social Security number (SSN), birthdate, address, and other personally identifiable information (PII). Unfortunately, criminals have become savvy in stealing the identities of the deceased in a similar manner.

Identity thieves commonly steal deceased identities by scanning obituaries. Obituaries serve as a tribute to your loved ones, but they can also reveal a good deal of PII, such as age, birthdates, parents' names, residential locations, birthplaces, and even information about the deceased's living family.

Thieves will also prey on vulnerable grieving individuals and pose as government officials reaching out to "offer" funeral assistance or answer questions about Medicare/Medicaid plans. Alternatively, criminals target next-of-kin family members by pretending to be debt collectors and fabricating outstanding debt belonging to the deceased.

In today's digital age, criminals search obituary sites, such as legacy.com or tributes.com, for the information they need. They also steal death certificates or search genealogy sites to conduct their activities. In addition, they use websites like findagrave.com to search for cemeteries and individual headstones and gather more information on the deceased.

What identity thieves can do with personal data

Once a thief has a deceased person's SSN and personal details, they can exploit that data in several ways, mainly by 

• Opening new credit accounts
• Taking out loans
• Filing fraudulent tax returns
• Submitting unemployment claims

Because the deceased can't monitor their own accounts or flag suspicious activity, these crimes can go undetected for months or longer. Based on our identity theft research, 45% of identity theft victims found that bad actors used their identity to open new accounts. 

However, ghosting identity theft is harder to detect because family members aren't usually tracking accounts under a deceased loved one's name.

How to address the impacts of ghosting identity theft

Ghosting identity theft can also impact individuals who may be handling the estate of their deceased loved one. Estate holders can lose money through fraudulent credit card charges or loans that bad actors take out without any intention of repayment.

Identity theft costs victims an average of $3,312.66, according to our survey, and the financial fallout from ghosting can be just as damaging, with the added burden of navigating an estate.

Red flags of ghosting identity theft to watch out for

There are several red flags that you can look for if you believe that your deceased loved one's PII has been stolen:

• Businesses or organizations call or send you letters concerning financial accounts related to your deceased loved one.
• Unusual activity on your departed loved one's credit report.
• Charges or financial activity on your loved one's bank or credit card account after they have passed, but before the account is closed or transferred.
• New accounts are being opened in the deceased's name after their passing.
• New credit or debit cards arrive in the mail addressed to the deceased person.
• Debt collectors contact you regarding debts of your deceased family member that you are not aware of, or they have a record of the deceased person holding accounts you don't recognize.
• A tax bill or notice was sent from the IRS for a year in which your relative did not file a tax return, or a refund was issued that you didn't request.

Methods to mitigate ghosting identity theft

If you discover or suspect your loved one's information has been stolen, all hope is not lost. There are several measures that you can take to address and mitigate the damage from ghosting identity theft.

1. Notify the FTC of the identity theft.
2. File a police report with local law enforcement for identity theft. If applicable, you may need to file the police report with the local municipality of the deceased.
3. Get in touch with the credit reporting bureaus and supply them with a legal copy of the death certificate. A deceased alert will be placed on your loved one's credit report once the document is received. This will ensure that if any credit inquiries or new credit requests are made on the file, the report will be flagged.
4. Inform the Social Security Administration (SSA) that the recipient has passed away.
5. Destroy or shred all documents that may include the deceased individual's PII.
6. If a known individual or family member commits the theft, a family law or estate planning lawyer may be able to help mitigate the problem.

Tips to protect your deceased loved ones from ghosting

Protecting your deceased loved ones from ghosting identity theft can seem challenging. The dangers of this form of identity fraud can be more damaging emotionally and time-consuming to rectify if your loved one is targeted.

Being aware of the dangers of ghosting and understanding how to protect yourself and your family members from becoming victims is key. While there are no guarantees for preventing identity theft, you can still take measures to help keep yourself and your departed loved one's information safe.

The following are a few steps you can take to minimize the likelihood of your loved ones' identities being stolen once they have passed away.

1. Leave out more sensitive and identifiable information from the obituary, such as specific dates, birth locations, the mother's maiden name, and extensive family history.
2. Inform credit bureaus (Experian, TransUnion, Equifax) and financial institutions of their passing with a copy of their death certificate, and keep a few copies for your records.
3. Monitor their credit report periodically for any suspicious activity.
4. Request several certified copies of the death certificate from the coroner or mortuary.
5. Close all open and active accounts in your loved one's name as soon as possible. If their bank account has outstanding transactions or activity, ensure the bank has flagged the account and noted that the owner is now deceased.
6. Provide the IRS, government agencies, and mortgage companies with a copy of the death records to ensure there is no fraudulent tax return or activity using their identity.
7. If possible, sign up for identity theft protection with your loved one's information to ensure any suspicious activity is flagged quickly.

Best identity theft protection services to prevent ghosting

Identity theft protection can make a real difference. According to our independent research, 71% of identity theft victims who were subscribed to a monitoring service at the time of their incident were alerted to the theft by that service — compared to just 20% of those without active monitoring.

Bottom line

Ghosting identity theft is a growing concern in today's digitally-driven world. The FTC reports that fraud losses reached more than $12 billion in 2024, and the identities of the deceased are particularly vulnerable targets because they can't monitor their own accounts or recognize warning signs. 

Losing a loved one is difficult enough without the added stress of navigating their stolen identity. However, with the measures outlined above, you can help prevent and mitigate ghosting identity theft from happening to you and your family. 

To learn more about other ways to protect your family from identity theft, check out our guide to the best ID theft protection services.

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