Deceased are new credit card fraud targets

By UK CreditCards.com

Credit card scamThe latest credit card scam involves fraudsters who use details of people who have died to open accounts, according to a new report.

A study from fraud prevention firm Halo claims that the personal information of 16% of those people who died in the 12 months to March this year was used in an ID scam.

Fraudsters read local newspapers for obituaries and use the information to conduct the theft, the firm explained.

They intercept mail intended for the deceased and use this to set up credit card accounts, as well as other financial products.

Halo warned that there are a large number of potential victims from the fraud.

Chris Worsley, product director at Halo, commented: "Increased vigilance from UK businesses and organisations is vital, not only in terms of complying with policies such as [the] Financial Services Authority's money laundering regulations, but also of reducing the strain on the economy, protecting your own business and finally reducing the stress of the victims -- bereaved individuals who will eventually be contacted by debt collectors."
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Published: 14 July 2009