Grief and Financial Scams

Immediately following the loss of a loved one, you can feel incredibly vulnerable. Sadly, we live in a world where some people look to take advantage of these vulnerabilities. The reality is that grief can make people susceptible to financial scams.

During times of great pain, people can be less vigilant, more trusting, and overwhelmed by emotions. Many take this as a moment for their kindness to shine brightest, while others are much more sinister. Here are some practical tips for protection.

Type of Financial Scams

It’s easy for your judgment to be clouded during grief, and this can make you an easy target. Here are some of the strategies that scammers can use.

Sympathy Scams

Scammers can pose as friends or even family members by phone, email, or other media. They may request donations for charitable causes or offer to help organize aspects of the funeral, only to steal the money.

Identity Theft 

 During grief, administration of the estate means passing off a lot of personal details to various companies. Scammers try to prey on this by asking for your information under some sort of guise or being using details obtained from an obituary. 

Inheritance Scams 

Scammers may falsely claim the deceased left behind debts that have to be paid immediately. This can pressure those who are grieving into paying for bills that don’t even exist. 

Investment Scams

Your financial future can be up in the air after a loss. Due to this, scammers may offer seemingly lucrative investment opportunities. In truth, they don’t exist, and your money will be taken.

Tips for Financial Protection

If you or a loved one may be vulnerable to financial scams, there are several tips that you can follow.

• Stay Informed – The first step is knowing that scammers could target a grieving person. Armed with that knowledge, there will be much more healthy skepticism in every decision taken. 
• Verify Information – Before making any transaction, verify the identity of any person or organization. If unsure, never be afraid to put the transaction on hold until further proof is given. A legitimate company wouldn’t pressure you for information. 
• Limit Public Information – When writing obituaries or any other relevant form of information, avoid using specific personal details. This includes addresses or birthdates that may be used for identity theft. 
• Use Someone You Can Trust – For those who are vulnerable, it’s best to use someone they can trust to confirm any decisions. For example, children can be consulted by a parent before any financial transactions are made.  
• Monitor Financial Accounts – Regularly check any financial accounts to make sure all transactions are accounted for. Any discrepancies should be immediately reported to the relevant financial institution. 

Key Questions for Financial Protection

We looked at some general advice there, but here are some key questions that should be asked before making any significant transaction following grief.

• Have I verified the identity of the person requesting money?
• Is this a solicited request? (i.e. did you expect this person to be contacting you)
• Is this transaction necessary? (can it be put off until there is more clarity)
• Have I consulted with someone I trust?

If the answer to any of these questions is no, then the transaction shouldn’t be made. It could well be a genuine company with a legitimate reason to call. If so, they will be understanding and allow you more time.

Regaining Clarity

The days following loss can be a blur. Emotional self-care is vital to help cope with the immediate grief, and also get some more clarity in the decisions you make. Seeking support is a great way to do this, such as speaking with loved ones, group support, or counseling.

There is also no replacement for time. While some key financial decisions need to be made right away, such as funeral expenses, many others can be delayed. If the financial decision can be delayed, then it’s often the best course of action to put it aside.

Final Thoughts

Grieving individuals can be seen as an easy target. The first step is to make sure that everyone affected knows that they are at risk of scammers. This will allow you to take the protective measures we’ve looked at above. Accept the kindness of people you trust but be highly skeptical of anyone asking for money.