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Avoiding Posthumous Identity Theft

Avoiding Posthumous Identity Theft

It is said that there are five stages of grief following the death of a family member or close friend: denial, anger, bargaining, depression and acceptance. Dealing with the loss of a loved one is extremely difficult. Tying up the deceased’s loose ends can prolong the grieving process because it keeps the reality of the situation at the forefront of your mind. However, the reality is that there are people who will look to take advantage of a death. Avoiding posthumous identity theft is something that the ones left behind must make  a priority.

What Is Posthumous Identity Theft?

When someone dies, their information doesn’t go away. This information can be stolen and used to apply for credit or loans. Criminals can also use this information to file fraudulent tax returns in order to receive the refund.

How Is The Deceased’s Information Obtained?

Experienced criminals can browse obituaries, hospital records or funeral home schedules to learn of new deaths. Public records often include much of the personal information needed to follow through with posthumous identity theft. You must insure that the deceased person’s information is protected.

Tips To Avoid Posthumous Identity Theft

  • Often the first item of business will be writing the obituary for a loved one. We advise you not to post any personal information, such as the deceased’s birthdate or exact date of death, middle name, maiden names or relatives’ names.
  • Immediately record the death in the National Death Registry.
  • Obtain multiple original death certificates (10-12 is a good starting point) to use in the reporting of the death to the proper outlets.
  • Next, placing a credit freeze on the deceased’s credit file with the three major credit bureaus (TransUnion, Equifax and Experian) is a wise decision. They will be able to flag the file as ‘deceased’.
  • All physical documents should be kept under lock and key.
  • Notify the Social Security Administration, all financial institutions, and insurance companies to report the death.

Losing a loved one is something that no one wants to think about, much less go through. It is important to be prepared when the situation inevitably arises. Avoiding posthumous identity theft will give you the peace of mind to know that your loved one’s information is protected.

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How To Avoid Student Loan Fraud

How To Avoid Student Loan Fraud

Let’s face it, college is expensive. The College Board reports that in 2017-2018, the average cost of tuition and fees at private colleges was $34,740, $9,970 for in-state public colleges, and out-of-state public school attendees averaged $25,620. This is per year (and doesn’t include room and board, books, etc.). Needless to say, most students require at least some financial aid. 70% of students, to be exact. Wouldn’t it be life-changing if your child found out they were unable to obtain student loans because someone had already damaged their credit? It happens all the time, unfortunately. Here are some tips on how to avoid student loan fraud and steps to take should you discover it has already occurred.

What Is Student Loan Fraud?

Specifically, student loan fraud is when someone steals another person’s information and fraudulently applies for and receives student loans. These loans will show up on the credit reports for the individual whos identity was stolen. If this has already happened to a student who is applying for financial aid, the outstanding (and most likely delinquent) loans will show on their credit report (thus preventing them from obtaining aid).

A potential student borrower doesn’t have to have been affected by student loan fraud specifically to have their ability to obtain financial aid impacted. Thieves who apply for credit, standard loans or anything that can show on a credit report will prevent the affected student from being approved for aid.

Tips For Preventing Fraud

Fortunately, there are precautions you can take to prevent, or at least lessen the impact from, identity theft for potential students:

  • Request a credit report for the student from one of the major credit bureaus. Carefully check the report for any fraudulent activity (the report will most likely be very short). In fact, the student may not even have a credit report yet (this is a good thing as it means they most likely have clean credit).
  • When applying for student loans, be very careful with any e-mail regarding student loans, FAFSA or anything related. There are many current scams which offer to find aid or fill out FAFSA forms for you. Do not open any attachments or respond to any e-mails unless you are fully aware of who the sender is.
  • Place a credit report on the student’s credit file to prevent anyone from opening credit using their information. You will also be notified when any attempts to obtain credit are made.

What To Do If Fraud Has Already Occurred

Should you find that the student’s credit report has fraudulent activity, follow these steps:

  • If there were student loans applied for on the student’s account, contact the school the fraudulent loans were opened through and notify them. Also, file a report with the Department of Education. The affected student may be eligible to have these loans removed through a false certification discharge.
  • If a student loan application was denied, contact the school the loans were applied through.
  • If subscribed to an identity theft restoration service, such as ReclaimMyID, contact them immediately. They will get right to work in recovering your identity and the faster they learn of the fraudulent activity the better.

College is an important step in determining the future. No potential student who wishes to further their education should be denied the chance due to student loan fraud. Learning how to avoid student loan fraud will serve you and any potential student well when the time comes to apply for financial aid.