Reviewed by Sep 28, 2020| Updated on
Deceased alerts are notifications sent to credit card companies that will inform them that a person is no more. This alert is usually sent by credit reporting agencies and is reflected on the person’s credit report as well. Credit-lending companies should not sanction any credit for the requests coming from the documents of a deceased person.
Deceased alerts are sent out in order to prevent identity frauds. Fraudsters pose as a genuine person and submit credit applications that are supported by documents of another person. The fraudsters will get the money, and the victim will be held responsible for making repayments; their credit report takes a hit. It is for this reason that individuals are advised to regularly check their credit report so that they can report identity frauds if found.
Understanding Deceased Alert
Alerting banks, credit lenders, and credit rating agencies of the death of an individual is crucial in preventing identity theft. Identity thieves are capable of stalking the identity of a dead person and abuse the same to make personal gains.
If an identity thief manages to get access to the personal information, such as name, identification documents, and so on, they can submit applications for credit cards, loans, or open bank accounts to launder money. Identity thieves are potent enough to use the existing cards of a deceased person and draw money from their accounts. This is possible if the accounts of a deceased person are still left open.
What If Deceased Alert Is Not Sent
Not notifying an individual’s death can lead to financial damages and affect estate left behind by the dead person. In this scenario, the legal heirs may find it complicated to inherit the same. It is, for this reason, that notifying the authorities of the death of a person becomes crucial. In order to prevent identity theft, the heirs of a deceased person should contact the credit reporting bureaus and request them to alert the concerned parties with a deceased alert.