Fraud Could Include Identity Theft, Credit Card Theft, and Fraudulent Loan Applications

Scammers Rely on Emotional Manipulation to Convince Grieving Family Members to Quickly Send Money or Personal Information

Scammers May Create Donation Websites to Steal Money from Surviving Family and Friends

Secretary Mosley said: “It could be overwhelming for family members to plan the details or costs of a funeral, which is why the Division of Consumer Protection offers some tips to manage end-of-life responsibilities and avoid scammers who seek to exploit. Keeping certain precautions in mind can prepare you and your loved ones to avoid fraud while navigating end of life concerns.”

The New York Department of State’s Division of Consumer Protection is warning consumers of funeral fraud and end-of-life identity theft, sometimes called “ghosting” or obituary scams. This type of fraud encompasses a wide range of deceptive practices, including theft of a deceased individual’s personal information to wrongfully open credit cards, apply for loans, commit crimes, and take other fraudulent actions; overcharging or upselling services; and impersonating funeral businesses or donation websites to steal money from surviving friends and family.

“Grieving families and friends should never have their time, money, or personal information stolen by fraud.” said Secretary of State Walter T. Mosley. “It can be overwhelming for family members to plan the details or costs of a funeral, which is why the Division of Consumer Protection offers some tips to manage end-of-life responsibilities and avoid scammers who seek to exploit. Keeping certain precautions in mind can prepare you and your loved ones to avoid fraud while navigating end of life concerns.”

York State Office for the Aging (NYSOFA) Director Greg Olsen said, "According to the Consumer Federation of America, scams and fraud cost consumers $119 billion annually. The tragic and shocking reality is that scammers will take advantage of every opportunity, including the recent death of a loved one, when a would-be victim may be vulnerable or susceptible to deceptive practices. While scammers are sophisticated, preventing scams is relatively easy if you know what to do. Protect yourself by utilizing the services of only trusted organizations, and watch for the warning signs of a scam, especially when a business or individual pressures you to act quickly when your guard may be down. NYSOFA has developed tools and resources to help you protect yourself and to understand the common scams that are out there. In addition, Governor Hochul has charged NYSOFA in this year’s budget with developing training and outreach material on scams and how to prevent them as well as what to do if you are a victim of a scam. Those resources will be available very soon."

AVOID FUNERAL SCAMS AND END-OF-LIFE IDENTITY THEFT:

Funeral Fraud Red Flags:

• Fake websites: Scammers create realistic-looking fake websites that look identical to a real funeral home or other real businesses. Some may also steal or create fake obituaries to get grieving loved ones to send scammers money for flowers, donations, or memorial items which don’t exist. Always carefully check website URLs and instructions from those planning the funeral services. Watch out for suspicious pop-ups and advertisements.
• Lack of price transparency: Under the Federal Trade Commission’s (FTC) Funeral Rule and New York State Law, funeral homes are required to provide price information. By law, every funeral home is required to keep a General Price List updated and available to consumers. Avoid funeral homes that don’t answer your questions or don’t provide an itemized price list. For more information about your consumer rights under the FTC Funeral Rule, please click here. For more information on your rights under New York State law or to file a complaint with the New York State Attorney General’s Office, please click here.
• Pressure on family members to act immediately: Scammers often rely on emotional manipulation to convince grieving family members to quickly send money or personal information. Never work with any business that guilts or pressures you into a decision. When in doubt, ask a trusted friend or family member for their thoughts on the situation.
• No license information: Funeral directors must be licensed by the New York state Department of Health (DOH). Check this list of licensed funeral directors with active registrations on the DOH website.
• Aggressive or deceptive sales tactics: Funeral homes should not try to force you to buy services or products you don’t want. Watch out for additional fees when considering package deals. A funeral home cannot require you to buy a casket from them, so you can consider buying a casket or urn from a local store or online. For more information on what to expect from a funeral home, please see the NYS Department of Health’s Consumer Guide for planning a funeral.

Protect Your Loved Ones’ Identity:

• Keep obituaries brief: Scammers can pull information and context clues from obituaries coupled with information on the dark web to steal identities. Be mindful about including personal information in obituaries, such as addresses, birth dates, maiden names, or family members’ full names which can be used to fuel identity theft.
• Watch out for unexpected bills or debt collections: Unexpected bills or collection notices may be signs of identity theft, so always make sure that any debt owed by a deceased loved one was really theirs. Make sure you are in contact with all parties involved and financial institutions to know the full details of any debt.
• Notify the credit bureaus, government, and banks of your loved one’s passing: Funeral homes are only required to notify the Social Security Administration of a death. You will need to notify other entities, including the state Department of Motor Vehicles, the credit bureaus (Experian, Equifax, and Transunion), and the IRS along with any banks or financial institutions. These agencies can all close an individual’s file upon learning of their death, protecting their identity from fraud.
• Monitor your loved one’s credit report: Many steal the identities of deceased individuals under the assumption that nobody will be monitoring their credit report after death. Keep an eye on your loved one’s credit report for any new debts or collections as signs of identity theft.

NYS Office for Aging’s scams-prevention webpage has resources and tips to stop scams, including a video series on some of the most common scams. There you can also learn about trusted scam-prevention tools that have been vetted and endorsed by NYSOFA, including SilverShield, EverSafe, and Lifespan of Greater Rochester's Fraud Awareness Network. These resources provide peer-to-peer support for scam victims and help you detect any suspicious transactions or digital communications.

 About the New York State Division of Consumer Protection

Follow the New York Department of State on Facebook, X and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection. The Division can also be reached via X at @NYSConsumer or Facebook.