Insurance fraud is on the rise as policy holders struggle during the economic crisis. As reported by the Association of British Insurers (ABI), 24% more of customers have turned to fraudulent claims on their life insurance policies in the past two years.
More previously honest people are now becoming so desperate for money, they are faking their deaths or scamming to cash in on life insurance policies.
Two senior women in the U.S were arrested for defrauding insurance companies out of $750,000. Over the course of three years, the two women bought cemetery plots, held fake funerals and counterfeited death certificates for the imaginary deceased, and then cashed in with the insurers.
Previously another couple of elderly U.S citizens took it one step further and committed various hit-and-runs on their real victims. The women chose to pray on homeless men of migrant Eastern European origins, befriending the men and paying the rent on apartments the women arranged for them. In return, the men were to sign a number of different life policies stating the women were their aunts and last surviving relatives. The women claimed $2.2 million.
A man in the UK apparently died from brain trauma while in Afghanistan as his ex-wife claimed a £300,000 payout to support their three children. The couple were revealed when the man visited his GP six months later!
Michael Jackson's three children might miss out on their entitlement payout of $22.5 million and instead receive only $2.5 million. One of the singer's assistants was in charge of making monthly payments into Jackson's life insurance fund, they have been accused by Jacko's family instead of depositing the payments straight into their own pocket.