Identity Theft After Death: The Hidden Risk of Open Accounts
When someone passes away, their digital footprint doesn't disappear. Unfortunately, criminals know this—and they exploit it.
Most families don't realise that a loved one's identity becomes more vulnerable after death, not less. With accounts left open and personal information still active across dozens of platforms, the deceased can become an easy target for fraud.
It's called "ghosting"—and it's more common than you might think.
What is Ghost Fraud?
Ghost fraud, or "ghosting," is a form of identity theft where criminals steal the identity of someone who has died. They use the deceased person's personal information to open credit cards, apply for loans, file fraudulent tax returns, or make purchases—all before anyone realises what's happening.
The term comes from the fact that the victim is, quite literally, a ghost. They can't check their credit report. They can't dispute charges. They can't report the crime. And often, family members don't discover the fraud until months later when debt collectors come calling.
The Numbers Are Staggering
- 2.5 million deceased identities are stolen each year in the United States alone
- 800,000 of those are used to open credit cards, loans, or phone contracts
- There's typically a 60-day window between death and official records being updated—plenty of time for criminals to act
- Fraud can continue for months or years before it's detected
How Do Criminals Get the Information?
Unfortunately, it's easier than you'd hope. Criminals obtain personal details about deceased individuals through:
- Obituaries — Often include full name, date of birth, suburb, and names of family members
- Social media — Open accounts may contain birth dates, addresses, photos of ID documents, and other personal details
- Data breaches — If the deceased's email was involved in a breach, their passwords and personal data may be circulating on the dark web
- Mail theft — Credit card offers, bank statements, and government correspondence continue arriving at the deceased's address
- Genealogy and public records sites — Death records, marriage certificates, and family trees provide a goldmine of information
In some heartbreaking cases, the perpetrator is someone the family knows—a relative, carer, or acquaintance who had access to personal documents.
Why Open Accounts Are a Risk
Every account left open after death is a potential entry point for fraud:
Email Accounts
Access to email means access to password resets for banking, shopping, and government services. It's the master key to someone's digital life.
Social Media Profiles
Open profiles can be taken over, used to scam friends and family, or mined for personal information used in fraud.
Online Shopping Accounts
Saved payment methods can be used for fraudulent purchases. Amazon, eBay, and retail accounts are common targets.
Subscription Services
Beyond continuing to charge the estate, these accounts may contain saved payment details that can be exploited.
Banking & Financial Accounts
Online banking access, superannuation portals, and investment accounts are high-value targets.
The Consequences Fall on the Family
When a deceased person's identity is stolen, the burden falls on their loved ones. Families may face:
- Debt collection calls for accounts they never knew existed
- Complications with the estate as fraudulent debts cloud the picture
- Emotional distress from seeing their loved one's name misused
- Hours of paperwork disputing fraudulent accounts and clearing the deceased's name
- Potential liability if fraud isn't discovered and disputed in time
All of this comes on top of grief—at a time when families are least equipped to deal with it.
How to Protect Your Loved One
The most effective protection against ghost fraud is to close accounts promptly after death. Here's what that involves:
Steps to Reduce Risk
- Notify credit reporting agencies — Request a "deceased alert" on their credit file with Equifax, Experian, and illion (in Australia). This helps prevent new accounts being opened.
- Close email accounts — Or at minimum, change passwords and enable additional security. Email is the gateway to everything else.
- Secure or memorialise social media — Facebook, Instagram, and other platforms have processes for memorialising or removing accounts.
- Cancel subscriptions and close retail accounts — Remove saved payment methods and close accounts entirely where possible.
- Notify banks and financial institutions — Close accounts or transfer to the estate as appropriate.
- Redirect or hold mail — Prevent sensitive documents from accumulating at an empty address.
- Monitor for suspicious activity — Keep an eye on any accounts that remain open during the estate settlement process.
The challenge, of course, is that most people have dozens—sometimes hundreds—of online accounts. Tracking them all down and closing each one takes significant time and effort, often requiring death certificates, proof of authority, and persistent follow-up.
This Is Why We Built It's Handled
We started It's Handled because we saw families struggling with exactly this problem. After losing someone, the last thing you need is to spend hours on hold with Telstra or navigating Facebook's memorialisation process.
We take care of it for you. We contact the platforms, handle the paperwork, follow up until accounts are closed, and keep you informed along the way. It's one less thing to worry about during an already difficult time—and it protects your loved one from becoming a victim of fraud.
Protect Their Digital Legacy
We'll close their accounts, so you don't have to. From $249.
Get StartedPlanning Ahead
If you're reading this and thinking about your own digital footprint, there are steps you can take now to make things easier for your family:
- Keep a record of your accounts and login details in a secure location your executor can access
- Use a password manager and ensure someone you trust has the master password
- Set up Google's Inactive Account Manager or Apple's Digital Legacy contacts
- Consider our Vault service to document your accounts and wishes now
A little preparation now can save your loved ones significant stress—and protect your identity long after you're gone.
Need Help?
If you've recently lost someone and need help closing their accounts, we're here for you. Start your case or reach out if you have questions. We understand this is hard, and we're here to help.