Control Your Privacy Series: Ghosting Fraud, Possibly the Darkest Form of Identity Theft

The truth is that if you don’t make some solid arrangements, your digital identity will outlive you. It’s not a pleasant subject, but if you value your privacy while you’re alive, plan for what happens to your data after you die.

Otherwise, everything you’ve used or stored throughout your life – from online accounts, digital files, photos, videos, music, and documents to subscriptions, memberships, and PayPal accounts – will remain online for anyone to find and use.

To prevent fraudulent use of your digital identity (ghosting fraud), your loved ones will need to close your accounts. This can be difficult and time-consuming, especially if they don’t know how to access your accounts or passwords.

If there are any outstanding payments or subscriptions associated with your accounts, your family will be responsible for settling them. In addition, if your identity is stolen, your family will have to deal with the consequences.

Do you know?

The Federal Trade Commission received a total of 5.7 million fraud and identity theft reports, of which 1.4 million were identity theft incidents
33% of Americans have experienced some form of identity theft at some point in their lives.
Identity theft cases in the U.S. are almost 3 times higher than in other countries.

Source: identitytheft.org

Related: What Happens to Your Data When a Company Is Breached

What is Ghosting Fraud? Types and Impact of This Fraud

Ghosting fraud, also known as dead identity theft, is a form of identity theft in which criminals use the personal information of a deceased person. This type of fraud takes advantage of the fact that it often takes time for financial institutions, government agencies, and credit bureaus to update their records after a person dies. During this time, fraudsters can use the deceased person’s information for a variety of fraudulent activities.

Types of ghosting scams include:

Credit fraud. This is one of the most common types of ghosting scams. Scammers use a deceased person’s name, date of birth, Social Security number, and other personal information to apply for new credit cards, loans, or lines of credit. They may also try to take over existing accounts.
Tax fraud. Criminals file false tax returns using the deceased’s information. They usually do this at the beginning of tax season, before the family files the final tax return for the loved one. The scammer aims to receive a fraudulent tax refund.
Medical fraud. In this scenario, scammers use the identity of a deceased person to obtain medical services and prescription drugs or submit false insurance claims. This not only results in financial losses, but can also lead to dangerous situations if the scammer’s medical information is mistaken for the deceased’s real medical records.
Workplace fraud. If the deceased employee’s accounts are not deactivated promptly, scammers can use their login credentials to access sensitive company information. They can also impersonate the deceased employee to trick coworkers into sharing sensitive information or transferring money to fake accounts.
Government benefits fraud. Criminals can use a deceased person’s information to apply for or continue to receive government benefits, such as Social Security or unemployment benefits.
Driving license fraud. Fraudsters can use a deceased person’s details to obtain a driving licence, which can then be used for other fraudulent activities.

Impact of ghosting scams:

The consequences of ghosting fraud can be serious for the family and estate of the deceased.

Financial losses: Unauthorized transactions, loans, or credit card charges can empty bank accounts and create significant debt that the testator may be responsible for repaying.
Reputation damage:Fraudulent activities undertaken in the name of a deceased person can destroy their memory and legacy, causing emotional distress to their loved ones.
Emotional stress: Dealing with fraud can be extremely difficult for grieving family members, adding stress and anxiety to an already difficult time.
Difficulties in obtaining benefits: If the deceased person’s credit history is damaged, it can complicate or delay the process of obtaining life insurance benefits, pension benefits or other financial entitlements.
Time-consuming solution: Cleaning up the mess left by ghosting fraud can be a long and complex process, requiring extensive communication with various institutions and agencies.
Legal complications: In some cases, the family may need legal assistance to resolve issues arising from the fraud, which increases the emotional and financial burden.
Identity Confusion: If, as a result of fraud, the deceased is marked as “alive” in some systems, this can cause confusion and difficulties in settling the estate.

4 Things You Should Consider to Avoid Falling Victim to Ghosting Scam

Planning ahead for what happens to your data after you die can be the best way to protect yourself from potential complications in the future.

Here are some simple steps you can take:

Make a list of all your digital assets and know where your data lives on the internet.

Start by writing a list that includes the basic details of your online accounts, such as the account name, website, and username or account ID. You can also include login and password information and instructions for what you want your loved ones to do with each account.

You may want to include the following:

email accounts
social media profiles
financial accounts (e.g. Paypal, cryptocurrency, online banking)
loyalty programs
gambling accounts
buying and selling accounts (e.g. eBay, Etsy)
online storage providers (e.g. Dropbox, Microsoft OneDrive)
application logins (e.g. banking, email, file storage)
Apple ID (Apple users).

Don’t remember all the accounts you’ve opened? No one does. But the good news is that Bitdefender Digital Identity Protection can do this for you. Once set up, it will show you your digital footprint.

Bitdefender Digital Identity Protection monitors your most sensitive data, starting with your email address and phone number. Automatically finds your private information in legal and illegal online datasets, and even checks if your personal information has been exposed on the Dark Web. Plus, you get instant alerts on new breaches and privacy threats (including social media impersonation), so you can act quickly to limit their impact.

You may also want to give your loved ones access to your devices by saving a PIN/password for each device you own. Many accounts now use two-factor authentication, which may require access to your devices. Once you have this information, save it in an encrypted folder and share the password with your closest relatives.

2. Add older contacts on Apple, Google and social media

Some tech giants allow users to designate an approved person to access their accounts if they die. This feature only takes a few minutes to activate, but it can save your family members a lot of trouble after your death.

Apple

On your iOS device, go to Settings → tap your name at the top → Password & Security → Older Contacts. On Mac, it’s also under Settings → Password & Security → Older Contacts.

Microsoft

Microsoft accounts (including Outlook, OneDrive, etc.) have a “Next of Kin” process. While not a direct legacy contact feature, it allows family members to request data from a deceased person’s account.

Google

If you’re an Android user or you use Google products, you can set up something called an inactive account manager. You can set it to automatically contact your people after a certain period of time—between three and 18 months—after it detects that you’re no longer using Google products.

Facebook

To set up a legacy contact on Facebook, go to Settings & Privacy → Settings → General → Memorial Settings. There’s also an option for Facebook to delete your account if you die, but someone will have to notify the company of your passing.

Instagram

Instagram also offers a legacy contact feature. Go to Settings → Account → Memorialization Settings to set it up.

Twitter

While Twitter doesn’t have a legacy contact feature, it does allow family members to request that a deceased user’s account be deactivated. They don’t provide access to the account, but they will work with someone authorized to act on behalf of the estate.

LinkedIn

LinkedIn allows family members or colleagues to request the deletion of a deceased member’s profile. They don’t offer a legacy connections feature, but they do have a process for memorializing accounts.

3. Download and organize your important files.

If your important content is stored on third-party websites, such as email servers, social media accounts, or cloud services, one way to ensure that you have access to it after your death is to download it to your device or hard drive and organize it into folders.

4. Select a digital artist.

You can appoint a digital executor to be responsible for closing, memorializing, or managing your accounts, and sharing or deleting digital assets like photos and videos. You can appoint this person informally (for example, by entrusting them with a list of your login details) or formally through a written will. This person can also help you keep your list of assets, accounts, and login details up to date while you’re alive.

How to prevent dead person impersonation scams

To protect the identity of a deceased person, it is worth taking the following steps:

Avoid oversharing information in obituaries: Avoid including too much personal information in obituaries, such as full names, dates of birth, addresses, or Social Security numbers.
Send instant notifications: Send copies of his death certificate to the three major credit bureaus to ensure that his credit reports have an alert on them and are frozen. Also contact the appropriate agricultural agencies immediately after the death:

Regular monitoring: Monitor your loved one’s credit report and financial accounts for suspicious activity. Use Bitdefender Digital Identity Protection and request free annual credit reports at www.annualcreditreport.com. Make sure your loved one’s financial information and other documents are safe and secure from prying eyes.

Related: Make it harder for scammers to get to you! Use these seven important tips

How to Report Identity Theft of a Deceased Person

The first step in reporting the identity theft of a deceased person is to file an Identity Theft Report with the Federal Trade Commission. When filing a report, there is a section where you can file a report on behalf of someone else.

Then, depending on the type of ghosting scam, follow the recommended steps: Action Plan: Solving the Problem of Financial Identity Theft, Roadmap: Solving Government Identity Theft, Action Plan: Clearing Your Name from Identity TheftOr Action Plan: Correcting Medical Records Due to Identity Theft.