New fraud prevention scheme launched to protect assets of deceased : Credit Card Guide

New fraud prevention scheme launched to protect assets of deceased

According to a recent report a new ID fraud protection scheme has been launched to reduce the chances of fraudsters posing as people that have passed away and then trying to take money from their banks or credit cards.

Fraudsters have managed to get away with this type of fraud by finding out who has recently died through obituaries, researching the person to get as much information as possible, and then attempting to impersonate them to get money from their bank or credit card account.

Some fraudsters have used the details of the deceased to open new accounts or order goods. The new scheme should help banks, credit reference agencies, and other agencies to more quickly identify any attempted fraud using this method. As from April these agencies, including law enforcement agencies, will be able to apply for official death registration information, which can then be used to update records and prevent this type of fraud.

The requested information will be released by the Registrars General for England and Wales, Northern Ireland and Scotland. An intensive security process will be used in order to vet the applicant before any data is given out. There will be fees charged to agencies that want access to this information, with a £5000 application fee and annual fees of £57,000.

One official from the Registrars General stated: 'We anticipate there will be quite a bit of interest from the financial sector from organisations such as credit reference agencies and commercial organisations who have fraud committed against them.'

Those that join the scheme will be sent an encrypted and securely delivered list of deaths that have been registered on a weekly basis so that records can be updated.

Tom Smith
29th January 2008

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