Among the most sought-after applications when implementing a Data Quality service is undoubtedly fraud prevention. Fraud is a critical concern for large corporations worldwide. A high-quality database becomes the engine and foundation for creating an impeccable anti-fraud system.
A common and growing fraud globally (in Brazil, data is scarce or unavailable) is the appropriation of deceased identities. According to the ACFE (Association of Certified Fraud Examiners), this type of fraud grows about 12% annually (no Brazilian indicators available).
What does this fraud involve? Simple. Imagine a decent citizen who worked all their life, built a family, and maintained positive records with various institutions and assets. Suddenly, this person dies at age 50. The grieving family and institutions — which barely manage living citizens, let alone the dead — create fertile ground for fraudsters who have an intricate network of informants in hospitals and public offices.
Between the actual death, issuance of the death certificate, its registration, and the family’s administrative steps (notaries, banks, credit cards, social security, inheritance, etc.), there is a crucial window in which companies must be vigilant. Fraudsters exploit the slow pace and inefficiency of the state combined with the family’s shock to their advantage.
Common frauds include issuing credit cards, bank financing, identity cloning, acquiring assets, among others. These can cause significant losses across all sectors and company sizes.
In the U.S., for instance, the SSA (Social Security Administration) maintains the DMF (Death Master File). This file enriches Data Quality by creating a Death Index.
In Brazil, obtaining such data from authorities is difficult. One notable initiative is the CNF — Cadastro Nacional de Falecidos (National Deceased Registry), populated by funeral homes, cemeteries, and even family members. By August 2014, it had over 13.5 million records. Another source is SERASA, though also subject to update delays.
Since CNF data is not real-time, how to protect yourself? Fortunately, Brazilian fraudsters tend to be less sophisticated than those abroad. Using enrichment from CNF and SERASA is sufficient to block most identity theft fraud attempts involving deceased individuals.
But is the Death Index only useful for fraud prevention? No.
Marketing campaigns and sales efforts sent at inappropriate times can severely damage a company’s image. Imagine delivering a marketing package to a recently deceased person’s home — how would their family react? This example barely scratches the surface of many embarrassing situations that can be avoided.
Therefore, marking prospects, customers, suppliers, and other contacts as “deceased” is an excellent practice — applicable to both individuals and companies.
Important caveat: Mark them, do not delete! The person might reappear in the database via web portals or fraud attempts to take services.
Another critical warning: Be careful not to incorrectly mark homonyms. Fine-tune your algorithms for disambiguating individuals.
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