Why Scammers Exploit Grief: The Ugly Truth
Grief makes people vulnerable, and scammers know this intimately. When you're navigating loss, your emotional defences are lowered, your attention is divided, and your usual scepticism gives way to trust in anyone offering help. It's a perfect storm that criminals exploit without conscience.
Dale Gilson, CEO of the Australian Funeral Directors Association, describes these scams as targeting families during one of the toughest times in their life. Paul Brooks of Burke and Douglas Funerals calls it a disgusting low act that preys on the vulnerable.
The 9 Biggest Scams Hitting Australian Families in 2026
The scale of the problem is staggering. According to data from Scamwatch, reported losses to scammers equated to $2.03 billion in 2024 alone, with 494,732 scam reports made that year. During that period, 10,355 suspected Facebook scam URLs were referred to Meta for investigation.
What makes these scams particularly devastating is that victims often feel they cannot report what happened for fear of adding further stress to grieving families. But as Consumer and Business Services SA emphasises, you should never be ashamed—being scammed can happen to anyone at any time.
Understanding the red flags and knowing how to protect yourself isn't just about safeguarding finances—it's about preserving your emotional energy for what truly matters: honouring your loved one and supporting your family through loss.
1. Ghosting Scams: Identity Theft of the Deceased
Graham's Story: A Warning We Must Heed
Before we dive into the scams, let me tell you about Graham. His story explains why this guide matters.
Belinda Guy was sifting through her ex-husband's belongings after his death when she discovered more than 100 gift cards worth around $40,000. There were piles of them, valued between $20 and $500, covering a tabletop. Documents revealed a reverse mortgage worth $150,000. A $60,000 redundancy payment had disappeared. Bank statements showed $103,000 leaving his account in just five months.
Graham, 64, had been living alone in Queensland with only his phone and computer for company. Romance scammers had found him. There was "Demi," the girlfriend he never met who promised $800,000 if he invested his money. A female American military sergeant he spoke to over social media. A woman who needed $80,000 for her grandmother's care. "Steve," who told him to transfer money and lie to the bank.
"He was living in squalor," Belinda told news.com.au. "He had no food. He was going to the public toilets and stealing toilet paper because he had no money."
Graham drank himself to death in the end. The scammers took everything and ran.
This is what we're up against.
Understanding the Threat
Imagine grieving a loved one, then receiving calls from debt collectors demanding payment for loans you never applied for. Letters from the ATO saying you owe taxes on incomes never earned. Credit card statements for purchases never made.
This is called a ghosting scam – identity theft targeting the deceased . Scammers steal personal information from obituaries or death announcements, then open new accounts, apply for loans, or file for tax refunds using the deceased's details.
The Devastating Impact
According to cybersecurity experts at Trend Micro, the consequences are severe :
Financial Losses: Unauthorised transactions can drain bank accounts
Damage to Reputation: The deceased person's reputation may be tarnished by fraudulent activities
Emotional Distress: Family members endure immense stress dealing with the fallout
Difficulty Obtaining Benefits: Compromised credit histories can hinder access to life insurance
How to Protect Your Loved One
The Australian Government's health department advises always stopping to check if a person is genuine before clicking links, sharing personal details, or sending money . For ghosting scams specifically, Trend Micro recommends :
Limit obituary details: Avoid sharing full birth dates, addresses, or maiden names
Notify key agencies promptly: Contact the Australian Death Notification Service, ATO, credit bureaus, banks, and insurers
Monitor credit reports: Check for suspicious activity via a free annual credit report from Equifax
Report immediately: Contact Scamwatch if you suspect identity theft
If identity theft occurs, send the death certificate to every credit reporting bureau, register the death with the ADNS, and notify the ATO immediatel.
2. Funeral Livestream Scams
The Rise of Online Farewells
Since the COVID-19 pandemic, live-stream funeral services have increased in popularity, as people can attend regardless of their location. While these services are often legitimate, scammers have been gaining access to relevant information and exploiting mourners with false invitations and links.
Scammers monitor publicly available funeral notices and create fake Facebook profiles posing as family members or friends of the deceased. Sam Morena, whose close friend passed away, told 9News he received multiple friend requests from different fake profiles. After reporting one, he received another two within ten minutes—and so did all his family and friends.
The Mechanics of the Scam
These fraudsters post bogus links to supposed funeral livestreams, often demanding payment to access the service. According to a National Anti-Scam Centre spokesperson, entering credit card details results in attempted charges being made against the card. Some scam streaming sites push you to subscribe with your credit card but don't deliver the content.
The Cyber Wardens program reports that scammers are also setting up fake GoFundMe and memorial sites to prey on the grieving, recommending people always check the legitimacy of sites with family members before donating.
Real Cases: When Scammers Target Mourners
Real Case: The Adelaide Warning
Sam Morena, whose close friend passed away, received multiple friend requests from different fake profiles ahead of the funeral. After reporting one, he received another two within ten minutes. So did all his family and friends.
Dale Gilson, CEO of the Australian Funeral Directors Association, states funeral directors would never send a social media friend request or ask for financial details.
The Callide Dawson Incident
A Queensland funeral home, Callide Dawson Funeral in Biloela, was forced to issue a warning after being caught up in a callous scam. The business was alerted to friend requests being sent from a fake Facebook account displaying the same funeral notice the home had posted on their official page. The fraudulent page contained a fake link to a live stream, which the business stated was sadly for the purpose of defrauding those who are grieving.
The Tamworth Experience
Burke and Douglas Funerals in Tamworth has been targeted by cyber criminals on several occasions over the past 18 months. Paul Brooks told the Canberra Times that as soon as they reported a scammer, it immediately changed to another funeral home down on the Victorian border.
Red Flags: How to Spot a Funeral Scam
Spelling and Grammar Errors
The Cyber Wardens report highlights that scammers' pages often contain misspelt words like "fuleral" and "livestram" and are littered with poor grammar—common cyber security red flags.
Unsolicited Friend Requests
A funeral director will never send you a Facebook friend request asking for personal details or payment.
Requests for Payment
You should never have to pay to view a funeral service. This should be pre-paid by whoever has organised the funeral. If you are asked to provide payment details, it's a major red flag.
Suspicious Links
Live streaming offered by legitimate funeral homes will only ever have the link available on their official website, typically placed at the bottom of the deceased funeral advertisement.
How to Verify a Funeral Livestream Is Legitimate
Contact the Funeral Home Directly
The ACCC advises people to contact the funeral home directly for a live streaming link. Use the funeral home's website or the phonebook to get in contact and gain the correct link to the service.
Check With Family Members
Before clicking any links or donating to any fundraiser, check with the family directly. Use contact information you know belongs to them and ask them the best way to donate. This way, you can verify the page's legitimacy.
Remember the Golden Rule
Paul Brooks of Burke and Douglas Funerals puts it simply: you'll never be charged to watch a live stream for a funeral. If anyone asks for payment, it's a scam.
Protection Strategies
The Department of Health's aged care engagement hub advises :
Always check the person contacting you is legitimate before clicking links or sharing personal details
If you get a suspicious message, don't respond until you verify who they are
Find their contact details online yourself and call to check if they're genuinely trying to reach you
Specifically for funeral scams:
You should never pay to view a funeral service – this is pre-paid by whoever organised the funeral
Live stream links are only available on the funeral home's official website
Contact the funeral home directly using verified contact information
Check with family members before clicking any linksIdentity Theft Risks for Bereaved Families
How Criminals Use Obituaries
Obituaries often list family names and personal details, which criminals use to commit identity theft. According to myGov, if your personal information has been stolen or exposed, you need to take immediate steps to protect yourself.
Protecting the Deceased's Identity
When a loved one passes away, their identity becomes vulnerable. The IDCARE service provides free identity and cyber support, offering tailored advice to help you respond to identity theft.
3. Fake Charity and Donation Requests
How These Scams Work
Scammers pose as nonprofits seeking "funeral expense support" or "memorial donations." These fraudulent fundraisers often appear on social media within days of a death, exploiting the generosity of friends and community members who want to help.
The Consumer and Business Services SA warns that scammers may set up a Go-Fund-Me page with a photo and story about the deceased, asking for money to support their family.
Real Case: The "Lifeline for Levi" Scam
Perth father Mark Tracy lost his father on a Monday and his 19-year-old son Levi on the Tuesday after years of cancer battles. While trying to plan the funeral, the family discovered Facebook pages set up by scammers asking for donations in the days after Levi's death.
"This particular scamming page, they are personally reaching out and messaging people," Mr Tracy told 9News. "They have a PayPal account they are trying to get people to send money to."
The fake pages imitated "Lifeline for Levi," a legitimate Facebook page the family had created to share updates about Levi's journey. Mr Tracy described his feelings as anger and frustration because it brought everything up to the surface again, and people were now questioning the family's integrity.
How to Verify Fundraisers
The Australian Government recommends :
Refuse to share personal or financial information with unverified sources
Confirm all legitimate activity by calling official numbers you find yourself
Check with the family directly using contact information you know belongs to them
Never click donation links in unsolicited emails or social media messages
Donate directly via official verified sources
Report any incidents immediately
4. Inheritance and Beneficiary Scams
Understanding the Scheme
Scammers contact you out of the blue claiming you can claim a large inheritance from a distant relative or wealthy benefactor. They pose as lawyers, bankers, or foreign officials, claiming the deceased left no other beneficiaries.
Sometimes they say you're legally entitled to claim the inheritance. Other times, they claim an unrelated wealthy person died without a will and you can inherit their fortune through legal trickery because you share the same last name.
You'll be told the inheritance is difficult to access due to government restrictions or taxes, and you need to pay money and provide personal details to claim it. Scammers may send seemingly legitimate legal documents to sign, including power of attorney documents.
The Golden Rule
If it sounds too good to be true, it is. Legitimate institutions never demand upfront fees to release funds. The Department of Health and Aged Care advises :
If a situation ever feels wrong, stop the transaction or conversation
Contact your bank to confirm the transaction has been cancelled
Ask someone you trust for help before proceeding
5. Romance Scams Targeting the Bereaved
The Loneliness Vulnerability
Graham's story tragically illustrates this category. Scammers target lonely, grieving individuals on dating sites and social media. They build relationships over months or years, then fabricate crises requiring money.
The Consumer Action Law Centre reports that romance scams remain among the most common scams reported to their frontline services.
Warning Signs
Someone you've never met declares love unusually quickly
They make excuses why they can't meet in person or video chat
They request money for emergencies, travel, or medical expenses
They ask you to keep the relationship secret
They pressure you to send money through unconventional methods
Protection Measures
Never send money to someone you haven't met in person
Talk to family or friends about your online relationships
Be suspicious of anyone who asks you to lie to your bank
Stop all contact immediately if you suspect a romance scam
6. Mule Account Recruitment
A Secondary Layer of Exploitation
Scammers use compromised individuals to help launder money. Graham's address received letters from major banks including NAB, Commonwealth Bank, ANZ and AMP in other people's names, indicating he was being used to establish mule accounts.
An AMP Bank spokesperson acknowledged they identified suspicious activity and promptly restricted the account before it could be used.
How to Recognise Recruitment Attempts
Receiving mail in other people's names at your address
Being asked to receive money and forward it elsewhere
Job offers that seem too easy involving money transfers
Requests to open bank accounts for someone else's use
What to Do
Contact your bank immediately if you suspect mule activity . Report to Scamwatch and ReportCyber even if you haven't been scammed .
7. Phishing Emails Disguised as Sympathy Messages
How They Work
Emails claiming to be from friends, co-workers, or religious groups may contain malware. They might claim to contain "photos of the deceased" that require login, or "condolence cards" that need to be opened with a password.
The Department of Health and Aged Care warns to be wary of unexpected contact from organisations asking you to confirm personal information .
Red Flags
Unexpected emails about the deceased
Urgent requests to open attachments or click links
Poor grammar and spelling
Email addresses that don't match the claimed sender
Requests for personal information
Protection Steps
Never click links or open attachments in suspicious emails
Verify with the sender using contact information you already have
Delete the email if you can't verify it
8. Aged Care Scams Targeting Families and Seniors
The Impersonation Threat
The Department of Health and Aged Care has reported suspicious phone calls and visits from people claiming to be from My Aged Care or allied health services .
How to Respond
Aged care assessors will always schedule visits in advance and provide proof of identification
Older people should refuse entry if they are concerned
Never share personal or financial information with unexpected visitors
Confirm all legitimate aged care activity by calling My Aged Care on 1800 200 422
9. The Scams Prevention Framework: Australia's New Protections
What's Changing
Australia's new Scams Prevention Framework creates enforceable obligations for banks, telcos, and certain digital platforms to prevent and disrupt scam activity . According to the Treasury, the framework :
Takes a whole-of-ecosystem approach to reduce gaps scammers exploit
Includes tough penalties for non-compliance up to $50 million
Creates dispute resolution pathways for consumers to seek redress
Minister for Financial Services Daniel Mulino announced in November 2025 that the government will consult on codes for banks, digital platforms, and telecommunications companies, setting out what it means under the legislation for them to act with due care and responsibility .
The Gap
Consumer Action Law Centre CEO Stephanie Tonkin states that platforms like email, marketplaces and dating apps are already leading avenues for scams. Graham was targeted on dating sites—platforms that consumer advocates warn wouldn't be covered under current designations.
What to Do If You've Been Scammed: Immediate Action Steps
Step 1: Contact Your Bank Immediately
If you've shared financial information or made payments, contact your bank straight away so you don't lose any more money .
Step 2: Report the Scam
Report the scam to Scamwatch via their website . You can also report to ReportCyber for cyber crimes .
Step 3: Get Free Professional Support
IDCARE can help you plan for free to help fix the damage. Call them on 1800 595 160 or visit their website.
Step 4: Preserve Evidence
Keep records of all emails, screenshots, and phone numbers related to the scam. This information can help authorities investigate and may assist your bank in recovering funds.
Step 5: Seek Emotional Support
Experiencing crime or harm online can be distressing. Reach out to family and friends or contact Lifeline on 13 11 14 or Beyond Blue on 1300 22 4636.
How to Protect Your Family's Digital Legacy from Scammers
The Vulnerability of Scattered Information
The same vulnerabilities that make bereaved families targets for scams—disorganisation, scattered information, and overwhelmed executors—can be addressed through proactive planning. A secure digital platform serves as your family's central repository.
A secure digital vault for family memories consolidates wills, insurance policies, and financial records in one encrypted location, accessible only to those you authorise. The Seniors Online Victoria directory highlights platforms offering lifetime storage for preserving everything that matters.
Set Custom Permissions for Loved Ones
Designated digital next-of-kin can be given specific levels of access within a private family vault. For instance, your estate administrator might need to view critical documents and directives, while relatives are only able to contribute to photo albums or share memories. This tiered approach ensures that confidential matters stay protected from unintended viewers. Modern digital platforms allow for this type of granular control, ensuring the right people have the right access at the right time.
Safeguard Against Fraud
Storing sensitive data in a highly secure environment, paired with strict access controls, significantly lowers the chances of identity fraud affecting you or a family member who has passed. With end-to-end encryption that operates on a zero-knowledge framework, your private files remain visible only to you—even the platform hosts cannot decipher them. For a detailed technical explanation of this concept, you can read about how zero-knowledge encryption works from a leading security provider. The legal and business applications of this technology, including its use in identity management, are also explored by Stanford Law School.
A Protected Space for Family History
Dedicated digital archives offer a safe haven for family heritage. Instead of risking exposure on public social networks, treasured items like photographs, voice recordings, and personal anecdotes are kept intact and private. This ensures future generations can connect with their history without the content being misused or mined. For those wanting to build a family tree and preserve genealogical records, reputable resources are available to guide you in preserving your family's story for years to come.
For those seeking to honor a relative's life story after their passing, these encrypted platforms provide a respectful and secure way to preserve their memory. Many services now offer the ability to create private or public tribute spaces where families can add photos, videos, and stories, ensuring a loved one's legacy lives on in a protected environment.
Prepare with Peace of Mind
Developing a thorough family protection strategy now means your relatives won't be left vulnerable later. A well-organized plan can include everything from final farewell notes to specific burial wishes, ensuring your instructions are honored and preventing malicious actors from taking advantage of uncertainty. New technology-powered platforms are emerging to help families manage this process efficiently, handling the administrative burden of collecting information and documenting wishes for the future.
Resources for Support and Reporting
Where to Report Scams
Organisation | Contact Method |
|---|---|
Online reporting form | |
Online reporting for cyber crimes | |
1800 595 160 | |
Online notification service |
Grief Support Services
Organisation | Contact Method |
|---|---|
13 11 14 | |
1300 22 4636 | |
1800 200 422 |
Government Resources
Organisation | Purpose |
|---|---|
Scams Prevention Framework information | |
Scam alerts and consumer protection | |
Coordinated scam response |
How to Protect Your Family's Digital Legacy
Secure Storage for Essential Documents
When important documents are scattered across different locations, they're vulnerable to loss and harder to protect. A secure digital vault for family memories consolidates wills, insurance policies, and financial records in one encrypted location, accessible only to those you authorise. The Seniors Online Victoria directory highlights platforms that offer lifetime storage and comprehensive categories for preserving everything that matters.
Controlled Access for Executors
Private family sharing rooms allow you to grant different access levels to different people—your executor might see legal documents while other family members access memories and photos. This granular control ensures sensitive information doesn't fall into the wrong hands.
Protection Against Identity Theft
By storing personal information securely and controlling who can access it, you reduce the risk of identity theft targeting either you or your deceased loved one. Zero-knowledge encryption means not even service providers can view your content.
Preserving Memories Securely
A digital platform for family history preservation ensures that precious memories—photos, videos, letters, and stories—are preserved for future generations without being exposed to public platforms where they could be exploited.
If you're looking to preserve a loved one's legacy after they've passed, secure platforms offer the ideal solution for honouring their memory safely.
Planning for the Future
Taking time to create a comprehensive family protection plan ensures your loved ones are protected when you're no longer here to guide them. This includes documenting funeral preferences and messages so your wishes are clear and cannot be exploited by scammers.
Protecting Grief With Awareness
The death of a loved one is difficult enough without scammers exploiting the moment. By recognising red flags in emails, websites, and social media messages, families can protect themselves from fraud.
Minister Daniel Mulino emphasises that at times like Christmas, where people are engaged in so many transactions, it's crucial to be cautious—to stop, check and protect .
Remember these key principles:
Stop: If something feels wrong, pause the transaction or conversation
Check: Verify with the funeral director or family directly using independently sourced contact details
Protect: Never share personal information in response to unsolicited messages
Report: Silence helps scammers, not families—report suspicious activity
Pairing awareness with secure tools ensures that grief is honoured—not manipulated. Start protecting your family's legacy today and give your loved ones the protection they deserve when they need it most.
Frequently Asked Questions About Bereavement Scams
1. Why are bereaved families often targeted by scammers?
Scammers target bereaved families because grief creates emotional vulnerability, divided attention, and reduced scepticism. People grieving are less likely to scrutinise messages carefully and more likely to trust offers of help. The Department of Health and Aged Care notes that if something feels wrong, you should stop and trust that instinct .
2. How can I spot a fake funeral livestream?
Look for misspelt words, poor grammar, and unsolicited friend requests on social media. Funeral directors never send social media friend requests asking for personal details or payment. You should never be charged to attend a funeral, whether in person or via livestream .
3. What details should I avoid putting in obituaries?
Avoid publishing full birth dates, home addresses, or maiden names. Trend Micro warns that identity theft can happen when scammers steal this information .
4. What should I do if I receive a suspicious condolence email?
Do not click on any attachments or links. Verify with the sender directly using contact information you already have. The Department of Health advises being wary about unexpected contact from organisations asking you to confirm personal information .
5. How can I protect a deceased loved one's identity?
Limit personal information in public notices, redirect mail through Australia Post, notify key institutions promptly, and register the death with the Australian Death Notification Service . Consider using a secure digital vault to store sensitive information.
6. Are online funeral fundraisers safe to donate to?
Only donate through official, verified sources. Check with the family directly using contact information you know belongs to them . Never click donation links in unsolicited emails or social media messages.
7. How can I tell if a charity appeal is genuine?
Check with the family directly to confirm they've authorised the fundraiser. Be wary of appeals created within days of a death, especially if you don't know the organiser personally. Report any suspicious pages to Scamwatch .
8. What should I do if I've already fallen for a scam?
Contact your bank immediately to stop any payments . Report the scam to Scamwatch and ReportCyber . Preserve all evidence and seek support from IDCARE on 1800 595 160.
9. How can I protect my family's digital legacy from scammers?
Use a secure digital platform to store important documents, photos, and memories rather than leaving them exposed on public social media. Enable two-factor authentication on all accounts and use a password manager to safely store all your passwords.
10. Where can I report funeral scams or suspicious activity in Australia?
Report to Scamwatch online or through their website . You can also report to ReportCyber for cyber crimes .
11. What support is available for the emotional impact of being scammed?
Being scammed can be very distressing. Contact Lifeline on 13 11 14 or Beyond Blue on 1300 22 4636 for free, confidential support. The Department of Health emphasises that if you've been scammed, you're not alone .
12. How can I help an elderly relative who might be targeted?
Raise the subject sensitively and help them understand the warning signs. The Department of Health and Aged Care advises :
Aged care assessors always schedule visits in advance
Refuse entry if concerned
Never share personal information
Confirm legitimate activity by calling My Aged Care on 1800 200 422
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