The theft occurred at a funeral home in Glen Waverley about 3.15pm on November 29.
Officers believe an unknown man attended the parlour of the funeral home while the funeral procession was making their way outside, before walking through to the chapel.
The man placed a mourner’s clutch purse under his jacket, before fleeing the scene, police believe.
The bag belonged to Tracey Tau, who picked her favourite bag out for her mother’s funeral.
“It had been a tough lead up until Mum’s passing, so at the end of the day it was kind of like, what else could go wrong,” she told 9News.
The 63-year-old had been outside the LePine chapel with other family and friends for the procession.
But as she said goodbye to her mother, the opportunistic thief struck, posing as a mourner to avoid suspicion.
“When you’re at a funeral not everyone knows everybody, so nobody twigged that he shouldn’t have been there,” she said.
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“I know times are tough and people are struggling, but this is a funeral.”
Police described the offending as strange, saying the man lingered after swiping the bag.
Investigators suspect the robbery was an isolated incident, but there are concerns the offender could strike again.
LePine said it was reviewing existing security measures.
Police have released images and CCTV of a man who they believe may be able to assist with their enquiries.
He is described as being aged between 25-35 years old and perceived to be of Asian appearance.
He was seen wearing a black hooded jumper, a blue denim jacket, light grey jeans, and white shoes.