Ghosting scam: exploiting loss for financial gain

Every year, millions of people are affected by identity theft, a problem that has reached enormous proportions. According to the Federal Trade Commission (FTC), in 2023, there were 5.7 million fraud complaints, 1.4 million of which corresponded to these cases.

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n the United States alone, approximately 33% of citizens will experience some form of identity theft at some point in their lives, a rate nearly three times higher than in other countries. However, one of the most insidious and hardest-to-detect types of fraud is known as “ghosting scam” – a scheme that preys on the emotional vulnerability of those in mourning by using the identity of deceased individuals to commit fraud. 

How ghosting fraudsters use stolen information 

Fraudsters use the identity of deceased individuals to obtain confidential information or financial gain, causing both emotional and financial harm to the affected families 

These criminals typically gather the deceased’s information from obituaries published in newspapers, on digital platforms or social media, from public records like death certificates or property records, or even by unauthorised access to the deceased’s or their relatives’ email accounts, social media, and other online services. 

Once they have this information, they use it to open bank accounts, apply for loans, make fraudulent purchases, or even try to claim inheritances by presenting false documentation. 

Different types of ghosting scam 

There are several types of fraud associated with ghosting, including: 

• Credit fraud: This is one of the most common forms. Fraudsters use the deceased’s name, date of birth, social security number, and other personal details to apply for new credit cards, loans, or lines of credit. They may also try to take over existing accounts. 

• Tax fraud: Fraudsters file false tax returns using the deceased’s information. They often do this at the beginning of the tax season, before the family can file the final return. The goal is to receive a fraudulent tax refund. 

• Medical fraud: In this case, criminals use the deceased’s identity to access medical services, obtain prescription drugs, or file fraudulent insurance claims. This not only causes financial losses but can also lead to dangerous situations if the fraudster’s medical information is mixed with the deceased’s genuine medical records. 

• Workplace fraud: If a deceased employee’s accounts aren’t promptly deactivated, fraudsters may use their login credentials to access sensitive company information. 

• Government benefits fraud: Criminals might use the deceased’s information to apply for or continue receiving government benefits, such as social security payments or unemployment benefits. 

• Driver’s licence fraud: Fraudsters might use the deceased’s data to obtain a driver’s licence, which can then be used for various fraudulent activities. 

Each of these types of fraud presents a significant threat to families already coping with the loss of a loved one, exacerbating their pain and adding further complications. 

Consequences of a particularly sensitive form of identity theft 

The consequences of this type of fraud are devastating. Besides the financial losses caused by identity theft and other fraud, families in mourning suffer profound emotional harm, becoming revictimised and feeling extremely vulnerable. They may also face legal difficulties when trying to resolve disputes related to inheritance or identity. 

To protect against this threat, it is essential to verify the identity of anyone requesting personal or financial information, especially if they claim to be an acquaintance or relative of the deceased. Using multiple channels to confirm the requester’s identity is crucial. 

It’s also important to limit access to personal information on social media and adjust privacy settings. Additionally, strong, unique passwords for each online account, enabling two-factor authentication, and remaining vigilant for suspicious activity are all highly recommended. 

In the event of any suspicious situation, reporting it to the relevant authorities and the online platforms involved is essential. As always, prevention and awareness are key to combating this type of fraud and protecting victims. 

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