Obituary Pirates - A New Source of Misinformation

^{September 2024}

As life insurance carriers explore ways to manage increasing claims volumes, overcome staff shortages, and improve customer satisfaction, some use online obituaries as evidence of death as part of their claim processes. This can be a helpful step in supporting the settlement of a death claim. But how reliable and trustworthy is this online information? In the US, the former gold standard for death validation, the Death Master File, seems to have fallen behind in the accuracy and timeliness of reporting deaths since the COVID-19 pandemic. More and more, searches of the tool as part of the reported claim validation process return no results. In Canada, confidentiality laws prohibit the release of personally identifying information contained in death registrations required by each province and territory. Insurers are, therefore, turning to the more publicly available and easy-to-obtain online obituaries.

Unfortunately, in this era of digital information being open for exploitation, even the humble online obituary has become a target for fraud in North America. Whether you are processing Individual or Group claims, this special newsletter is dedicated to raising awareness of this new significant concern and providing crucial considerations for claims management. The goal is to equip professionals with the knowledge they need to navigate the use of online obituaries as proof of death, ensuring swift but accurate validation of a death.

 So, what exactly is an Obituary Pirate?   

If you look up 'obituary pirates' in any search engine, you will find a host of stories and articles about the internet being flooded with misinformation about a person's death. This is not just a human-driven scheme, but one increasingly facilitated by Artificial Intelligence (AI). AI might be gathering details online and creating a false report of a person's death altogether, or altering the cause or circumstances of a valid death. Individuals have even reported finding their own obituary online. In any of these cases, details are completely false or, at minimum, inaccurate, and created by these named 'obituary pirates', all as a way to make money. 

While there are multiple activities that could be termed ‘obituary piracy’, in this instance, we are referring to a term used to define an internet marketing scheme in which people create false or altered obituaries either with or without the use of AI. These pages and videos hosted on social media, video, and search engine platforms are linked to advertisements that ultimately generate profits. 

How should claim operations approach this risk? 

There are several claim-handling scenarios where obituaries have become a trusted source of proof of death. For express claims and unclaimed property in particular, obituaries have been a key element in swiftly resolving high caseloads of claims requiring low claim adjudication expertise. While initially this was an efficient, no-cost source of validation for small face amount non-contestable claims, over time carriers have become more reliant on the online obituary. At the same time, policy face amounts have crept up and online obituaries are now sometimes used on contestable and large claims within the industry under the consumer and agent pressures of swiftly resolving a claim. This poses an elevated risk to an insurer if any process accepts only one source of evidence to prove a death, this could result in overlooking an increasing number of fraudulent claims being processed across the United States and Canada if only online obituaries were used. 

In any claim operation, it is crucial to have multiple sources of credible, independent information in place for validating any death. The phenomenon of piracy can be addressed without giving up the need for expediency. Here are a few details to consider as you evaluate those practices, look to streamline claim submissions, and cautiously continue using online information. 

• Include an online obituary search as part of your baseline claim process. Don’t let these pirates scare you away from using the internet. Where online searches are concerned, process consistency is key to ensuring there is no bias in adjudication and that the use of the tool can be supported in cases of litigation or appeal. This should, however, be considered only one point of assessment and is an appropriate step to validate documentation received to confirm if the facts line up with the claim evidence received.  

• Make a decision with more than one source of information. A claim decision should never be based solely on the basis of an online finding. Appropriate validation of a death or illness should be obtained to confirm if the online information is legitimate. Your claim process should include more than one independent source of proof of death, such as calls to funeral homes and searches in reputable databases. 

• Use publicly available information. Information available to the public is appropriate to search under the law. If a login is required to view information, it is off-limits. Never use your personal social media account, a company account, or a made-up login to access private information.  

• Consider the obituary information to support the cause of death and health history. The information that feeds an online scam is the same information that may be relevant to your claim or policy. Obituary details about the onset of illness, manner of death, or other conditions may be appropriate to search further. 

• Approach online articles about accidental deaths with caution. Online articles can be helpful but should equally be approached carefully. Like obituaries, they should be a tool to validate an accident against any policy exclusions or to consider whether a beneficiary is implicated in a death—but not used as one source of the truth. Independent sources—such as police, coroner, or autopsy reports—should be reviewed to validate if the information is accurate. 

• Establish good vendor partnerships. Investigation firms can still be your best friend in times of need. Many are experts in fraud in various realms and countries. Be sure to partner with vendors who are well versed in technology, independent sources of proof of death, fraud, and the law, and that you establish your own internal guidelines and criteria for referring appropriate claims.  

What should you do next?

 There are several activities you can participate in to protect against obituary piracy:

• Educate your team. A healthy dose of skepticism about the evidence on file is an inherent skill set for any claim adjudicator. You can support your team with education, awareness, and regular coaching/review to ensure that your organization's practices support good fraud monitoring activities. 
•  Track your findings. Investing in data initiatives to track fraudulent activities may also serve you well, potentially enabling you to uncover and address fraud schemes and sources. 
•  Work with your reinsurer. Your reinsurer is exposed to your local industry and global business. Don’t be afraid to approach your risk partner to discuss a particular claim, recent trends, or your business needs.  

How can you reach us? 

 We welcome hearing from you! Please continue to connect with us to discuss  how we can support your team in this changing landscape.