Grief and Greed: A Guide to Outsmarting Bereavement Scams
Editorial Approach
For this financial literacy feature, I utilized plain language to demystify the complex "hidden" costs of real estate. My strategy was to move beyond the emotional appeal of the "American Dream" to provide a pragmatic, scannable roadmap for first-time buyers. By organizing dense financial requirements—like closing costs and escrowed property taxes—into actionable categories, I transformed a potentially overwhelming process into a clear and accessible guide.
When you lose a loved one, you are distracted and vulnerable—and con artists know it. Scammers specifically target the bereaved, using the confusion of a recent loss to trick people into paying fake debts or revealing bank information. Protecting yourself starts with knowing their tactics. While we hope you are never a target, being aware of these common frauds can prevent you from becoming a victim when a predator strikes.
Overdue Utilities/Bills: A “professional” may contact you about a loved one’s debt via phone, email, mail or in person. They might show a realistic badge or a fake bill, often including a link to a “secure” payment form. Never give out financial information under pressure. Instead, use an old bill to find the company’s official number and contact them directly to verify the status of the account.
Unpaid Taxes. If you learn about a tax debt out of the blue, be wary. The IRS typically communicates by mail multiple times before taking other actions. Hunt down previous tax returns or consult with a tax professional. Any payments should be made only to the U.S. Treasury and mailed directly to the IRS. Never pay a collection agency claiming to represent the government.
The “Personal Loan.” Funerals often bring people together, including some you may not know well. Be suspicious of anyone claiming the deceased owed them a private loan. If you know the person, ask a trusted friend to help you verify the story. If you feel you are being extorted, contact an attorney immediately.
The "Cadillac" Funeral. While most funeral directors provide excellent care, some may exploit your sorrow to oversell services. If you are being shown caskets or services well above your budget, speak up. Request a full price list, bring a companion for support and stick to a pre-set budget. Always work with a reputable, established funeral home.
Life Insurance Policy Lapse. A scammer may contact you claiming a life insurance policy exists, but only if you pay "final installments" to activate the payout. They often ask for payment via wire transfer, cash or bank withdrawal. Their goal is identity theft or straight-up robbery. If a claim seems legitimate, have a lawyer or a trusted family member look into it after the initial shock of the loss has passed.
Surprise Inheritances. Be wary of messages regarding "unclaimed funds" or surprise inheritances that require you to "verify" your bank account information first. Don't fall for the narrative. Turn to a professional to determine if the funds are real and how to receive them without risking your identity or your bank balance.
Threatened Benefits. Scammers know that the fear of losing health benefits is a powerful motivator. They may demand immediate payment to "reactivate" coverage. Do not provide a credit card number to the caller. Hang up and contact the insurance provider directly using the number on their official website.
Tips for staying protected:
Be guarded. Scammers can be pushy or overly friendly. Never make a financial decision under pressure.
Be "high-maintenance." Ask hard questions and refer callers to your attorney. Con artists usually move on to easier targets when they meet resistance.
Be vague. Keep obituaries simple. Scammers use personal details like maiden names to fake familiarity with your family.
Monitor credit. Contact Equifax, Experian or TransUnion to monitor the credit of the deceased to prevent identity theft.
Do nothing. Let unknown calls go to voicemail. Give yourself the time to process requests when you are in a clearer mindset.