Each year, approximately 2.4 million funerals take place. Despite any preparations you might have undertaken, losing a loved one can be a profound emotional and financial burden. The process of arranging a funeral can be overwhelming, especially with the myriad of decisions one must confront and the typical cost, which can reach around $8,300.

During such tumultuous times, individuals may let their guard down, making them prime targets for unscrupulous scammers. The emotional toll of grieving, coupled with the pressure of handling numerous details related to a loved one’s affairs, creates vulnerability that criminals exploit, viewing personal loss as an opportunity to deceive and rob.

Below are four prevalent “funeral scams” to be wary of while navigating this challenging period.

Imposter Service Providers

Among the more common funeral scams is simple impersonation. Scammers will pose as reputable figures to coax money from you. A few typical scenarios include:

• Funeral Home Impersonation: Fraudsters may pose as representatives from a funeral home, contacting you or other grieving relatives claiming that immediate payment is needed for unpaid bills or additional costs to ensure services are not canceled. Often, they demand payment via money transfer apps like Zelle. Remember, official funeral homes do not conduct business this way—if you receive such a call, simply hang up and reach out to the genuine funeral home.
• IRS Scams: Scammers occasionally reach out to the family of the deceased, insisting that the individual owed back taxes and that the relatives are now liable for immediate payment to avoid further complications. It’s important to note that the IRS will never initiate contact by phone; they will always use traditional mail.
• Life Insurance Fraud: In this scam, individuals claim to be the insurance agent for the deceased, stating that their last premium payment was missed and that the family can secure a substantial payout by catching up on payments. This tactic falls under inheritance scams, preying on the financial distress often experienced by the grieving.

Ensure that your loved one’s death is reported to the appropriate government authorities, and remember that no legitimate debt should require immediate payment over the phone.

Posthumous Identity Theft (“Ghosting”)

This form of identity theft targets individuals soon after their passing. Scammers seek to acquire sensitive personal and financial information before the deceased’s death is reported to relevant institutions. Accessing the deceased’s accounts allows them to siphon funds or engage in identity theft to create fraudulent credit, ultimately harming the estate. It is beneficial to monitor your loved one’s financial accounts in the days following their loss.

Fraudulent Funeral Livestreams

A more recent and alarming scam involves fake funeral livestreams. Scammers set up false social media accounts claiming to celebrate the life of the deceased, promoting a livestream of the funeral proceedings at the correct time and date. They then request a fee for access to the nonexistent event, effectively stealing credit card information from unsuspecting mourners.

To defend against this scam, it is essential to inform friends and family that no such livestream is happening. Work together to report and remove fraudulent pages across social media platforms.

Fake Obituaries

An additional scam involves fictitious obituaries, targeting individuals with a prominent social media footprint. Scammers create false obituary pages that shock friends and family, linking the pages to advertising networks to profit from each view. These actions can generate significant revenue due to the extensive networks of those targeted.

While there’s little that can be done to prevent the creation of fake obituaries—given the vast amount of personal information accessible online— victims typically suffer no financial loss, unless their employers wrongly presume they are deceased, confusing their employment status.