How to spot a funeral scam

Not even funerals are exempt from scams.

You would like to think humanity has some limits, but apparently scammers are even happy to rip off grieving family and friends when they are at their most vulnerable.

Funerals are expensive, even a basic coffin can cost $1000, add in funeral director costs, cremation, burial costs, the cost of a wake, and you can easily be looking at $15,000.

Of course, those sorts of figures attract scummy scammers like flies, only adding to the family’s misery and financial woes.

And what with the grief and costs, you may not mentally be in your best form, so what do you need to look out for in a funeral scam?

Inflated costs

Sadly, this one isn’t faceless scammers on the end of a phone line, but often funeral providers themselves.

Basically, some shonky funeral directors will inflate service costs to maximise profit.

This isn’t a new phenomenon, writer Jessica Mitford first exposed the practice in the US with her best-selling book The American Way of Death in 1963. It brought to light dodgy practices such as pushing expensive coffins and flowers and unnecessary services to prepare the body.

And just in case you think it only happens overseas, in 2021, the Australian Consumer and Competition Commission (ACCC) had to issue a guide to what was covered by consumer law when it comes to funerals.

It has since successfully prosecuted funeral homes for misleading contract terms.

So what to look for? Experts at Affordable Urns, say some funeral homes will take advantage of the fact that grieving families may not feel comfortable questioning costs.

“Make sure you ask for an itemised cost estimate for all services and products to ensure transparency,” the Affordable Urns team recommends.

“Carefully review all contracts before signing, ensuring that all services, costs, and terms are clearly outlined and understood”.

Affordable Urns also urged family members to not feel rushed to make a decision and advised people to seek secondary advice from friends or family or even legal advice if you feel it’s warranted.

When choosing a funeral provider, the ACCC recommends consumers:

• get recommendations from someone they trust
• research funeral providers in their area
• compare services, products, and pricing information.

Prepaid funerals

There are also cases of financial institutions offering prepaid funeral funds and then not delivering when it comes to the funeral.

If you need any evidence this still happens, a company called Youlpa collapsed in 2022, with thousands out of pocket on funeral expenses. At its peak, it’s estimated it had 25,000 clients.

It was originally called the Aboriginal Community Benefit Fund (ACBF), a name that was designed to evoke the impression it was a benevolent service for the Aboriginal community.

“The payments were not for a purpose: the payments were directly to ACBF as a corporation. There was no fund, no trust fund and no trust,” the Australian Financial Complaints Authority (AFCA) said in a finding against the company.

To protect yourself from this sort of fraud, do a bit of due diligence before you commit to a prepaid funeral.

Check the provider has a proven track record and ask around for recommendations.

Funeral livestreams

With the pandemic came the rise of live-streaming funerals, and with a fresh new scam, it’s called grief harvesting.

Scammers will target the friends and family of the recently deceased sending a request from what looks like a reputable source and ask them to pay to watch the livestream.

Instead, they will take your money, and probably your credit card details and personal data as well.

Usually, the scammers will clone the funeral director’s website or send an email with a similar-looking address and work their scam from there.

“Funeral directors will not request payment or personal details to attend a funeral, either in-person or to watch via live stream,” Dale Gilson, CEO of the Australian Funeral Directors Association told the ABC. 

If you are approached to pay to watch a funeral livestream, you are advised to approach the funeral home directly for the correct link and ignore any requests for money.

Have you heard of a funeral fraud? Why not share your experience in the comments section below?

Also read: Funeral insurance complaint shows older Australians at risk of losing thousands