Each year, approximately 2.5 million Americans have their identity stolen... after their deaths. These stolen identities are used to borrow money, purchase cell phones, fraudulently open credit cards, etc., all of which can dramatically impact the liability exposure of the decedent's estate. Criminals may even file tax returns under the name of the decedent and collect refunds (totaling $5.2 billion in 2011) that rightly belong to someone you.
Welcome to the world of "ghosting": the theft of a deceased individual's identity.
How does "ghosting" happen?
Your identity as a deceased individual is perhaps more vulnerable to theft than your identity as a living individual. Suppose you pass away today. It can take six months or more for credit-reporting agencies, financial institutions, and the Social Security Administration to register your death records and share information that lets other governmental agencies and financial institutions know you are deceased. During that time, you aren't regularly checking your credit score or other financial information because, you know, you're dead.