Beware of the funeral cover scammers
Nothing is free from criminal activity anymore...
The reality is that there are a lot of chancers out there, constantly looking at ways to make a quick buck - and they are targeting insurance policies.
However, what these chancers don't always realise is that each funeral or life insurance organisation needs to do their own investigation in order for the policy to be paid out.
During the investigation period, there have been reports that a lot of criminals, family members, and “money schemers” have tried to falsify evidence in order to submit a claim.
According to Megan Govender, convenor of the Forensics Standing Committee at the Association of Savings and Investment South Africa (ASISA), there have been many opportunists who have tried to work in groups or syndicates to exploit the system.
Syndicates, particularly in the Eastern Cape, look for every opportunity to exploit and there has been an upward trend with unnatural deaths in the last few years.
READ: Funeral association hits out at undertakers
Not only that, but 68 of the 3,268 causes of fraud involved funeral polices in 2021 alone. It’s not only syndicates or criminals that are trying to take a chance, but even family members are in on it.
ASISA have revealed they are on the lookout for various high profile cases involving murders and people who look to claim the life insurance of those deceased.
Here are some tips from ASISA on things to be wary of when it comes to these situations that need to be investigated:
1.
Look out for the ones who are vulnerable. These can be family members who abuse alcohol or drugs. These people are most likely to be taken advantage of, especially when they are at their weakest.
2.
Funeral policies are favoured because of the cover it brings. These are the same policies that are quick to pay out, rather than taking weeks or months.
3.
Being dishonest and fraudulent is a serious crime. Should you be involved in such activity, there is a high chance you could go to jail. So make sure you're honest should you see fraud happening. Report it to the life cover/insurance organisation, the police or even report it to the South African Insurance Crime Bureau.
4.
Make sure that all your personal documents like your ID or passport are always kept with you. Those can be replicated and be used by other individuals looking to score on your behalf.
There's a growing trend of syndicates taking out funeral policies for people they subsequently kill. Investigations identified over 60 cases of fraud involving funeral policies in the past year. ASISA's Megan Govender speaks to @XoliMngambi.
— Newzroom Afrika (@Newzroom405) May 12, 2022
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