What if Social Security thinks you're dead?

Mark Twain could chuckle that reports of his death were greatly exaggerated. But it's no laughing matter if your name shows up on the Social Security Administration's Death Master File (DMF) prematurely. This compilation of U.S. deaths includes about 2.8 million verified reports a year listing name, Social Security number, date of death, birth date, and ZIP code of last residence. Of those, one-half of 1 percent are listed in error, meaning that some 14,000 people are mistakenly killed off annually.

The file is publicly available because of a 1978 Freedom of Information Act lawsuit. Federal agencies, credit-reporting organizations, financial institutions, and other businesses use it to ensure the correct processing of pension funds, government benefits, insurance claims, and more. But anyone with $7,245 can buy a copy of the full file (all 89 million names), subscribe to weekly updates, and post the information online. For example, some genealogical websites, such as Ancestry.com allow their users to search the DMF.

If your name mistakenly ends up on the list, you could become the victim of identity theft, since the file contains information a scam artist can use to apply for credit in your name. Or you might lose access to your own money. "You go to your bank to cash a check and find out your account is closed," says Steven Weisman, an attorney and professor at Bentley University in Waltham, Mass., who specializes in identity theft and scams. "Or maybe you apply for credit and are told you are dead. You might stop receiving government benefits or disability checks."

The Social Security Administration admits that mistakes happen. "Every day we receive death notices from states, family members, the post office, health-insurance companies, county clerks, and funeral homes," which are entered into the DMF, says Mark Hinkle, a spokesman for the agency. "If a human being inadvertently types in the wrong number, living people can end up on the list."

If you're one of the unlucky few, Hinkle says you should go to your nearest Social Security office (to find it, go to the Social Security Office Locator). "You'll need to meet face-to-face with a staffer and show a photo ID, but we take it from there to remove the death coding," he says. "In some cases, it's an easy fix." Hinkle adds that the agency will make calls or write letters to help you if you're adversely affected by the erroneous listing.

Weisman suggests finding out where the mistake originated, which is usually a county clerk's office. You can use one of the genealogical websites or other free online listings of the DMF to search by Social Security number to find out. If there's a death certificate issued, you'll need to get it amended through the issuing office and send it to all interested parties—banks, credit bureaus, and insurers—to let them know you're still alive and kicking. The nonprofit Identity Theft Resource Center offers a template letter that can be sent to government agencies or businesses to correct an erroneous death report. Call 888-400-5530, or go to the Identity Theft Resource Center and look at the pull-down menu under "Victim Resources."