Scammers have devised a lucrative scheme by targeting one of the most vulnerable and isolated groups in the United States: inmates on death row. According to a report by SentiLink, an identity verification company, these criminals are stealing the identities of inmates awaiting execution in Texas to carry out financial frauds known as "bust out" scams. This type of scam involves fraudsters using stolen or fabricated identities to build credit with financial institutions. Over time, they develop a credible financial history only to max out loans or credit card advances suddenly, absconding with the money. Such scams are immensely costly, with TransUnion estimating that they result in a $1 billion loss annually to the banking industry.
The scam, which began in March 2023, takes advantage of the isolation of death row inmates, who are generally disconnected from the outside world. This disconnection minimizes the likelihood of them receiving any correspondence, such as letters or statements, that could alert them to fraudulent activities conducted in their names. Robin Maher, executive director of the Death Penalty Information Center, highlighted that most inmates lack financial resources and access to communication channels that could inform them of such frauds.
Unfortunately, the Texas Department of Public Safety has not commented on the situation. The rising trend of identity theft and fraud is not new; it has been steadily increasing over the years. Complaints to the Federal Trade Commission have consistently risen since 2001, reaching an all-time high of 6.5 million claims in 2024.
David Maimon, head of fraud insight at SentiLink, uncovered this scam when he investigated a tip about an identity fraud case involving a death row inmate. This led him to examine the Texas Department of Criminal Justice's online database of inmates scheduled for execution. Comparing this data with SentiLink's records of identity fraud, he discovered that nearly 10% of the 172 inmates listed had been victims of identity theft.
Maimon explained that while some fraudsters are turning to artificial intelligence to fabricate identities for bust-out scams, impersonating real individuals, such as death row inmates, is more challenging to detect. These individuals have public records and histories that can be exploited by scammers to appear legitimate. Maimon further noted that executing such a scheme requires patience, as scammers must carefully build credit before making off with substantial sums—often $50,000 to $100,000 or more.
The identity of the scammers remains unknown, but Maimon speculates that the Texas fraud is likely orchestrated by a single operation due to its consistent pattern. Bust-out scams can also involve physically entering banks while impersonating a stolen identity. While identity theft involving death row inmates is not entirely new, Maimon's findings predominantly involve inmates from Texas, suggesting that the perpetrators might be based there. Texas, after all, has one of the highest numbers of death row inmates according to the Death Penalty Information Center's statistics.
In most instances, the fraudsters opened bank accounts and credit cards in the names of the inmates. In some cases, they also registered fake businesses under these identities. For example, in June 2023, scammers created a fictitious landscaping business in Arlington, Texas, using the name of Ronald Haskell, an inmate who has been on death row since 2019 for a mass murder committed in 2014. A relative of Haskell mentioned to NBC News that they were unaware of the scam but declined to provide further comment.
Kevin Collier, a reporter specializing in cybersecurity, privacy, and technology policy for NBC News, has been covering this disturbing trend. The exploitation of death row inmates' identities reveals the sophisticated and calculated nature of modern financial fraud, highlighting the need for increased vigilance and improved protective measures against such scams.