You are Here > Home > My Insurance > Funeral policy fraud on the increase

Funeral policy fraud on the increase

Sep 20, 2021

Funeral policy fraud on the increaseWhen fraudsters access your personal information, they can use this information to take out a funeral policy in your name, and then claim benefits on the policy using a fake death certificate and other supporting documentation.

“Finding out you are the victim of a fraudster can be distressing, both financially and psychologically,” says Rose Khutlang, Old Mutual Provincial Manager.

“Old Mutual has put various measures in place to protect customers, however, it’s important that every customer takes responsibility for ensuring their personal information is protected to prevent it from being used to open policies fraudulently.

“This type of funeral policy fraud is widespread across the industry. In most instances victims are not aware they have been compromised and only realise it when it is too late. We urge all customers to take the necessary steps to safeguard their information.”

These safety steps include:

  • Check your bank statements regularly and look out for suspicious debit orders linked to policies you did not authorise. If you spot something irregular, notify your bank and the concerned service provider immediately.
  • Check your payslip regularly, and if there are any deductions you did not sign up for, report this to your employer or HR department for further investigation.
  • Report any suspected fraud both to the police and your financial services provider.

“We view all cases of insurance fraud as serious crimes and are committed to stamping it out wherever possible,” adds Khutlang.

How is the fraud usually carried out?

Fraudsters fabricate an identity using stolen personal information and falsify documents to register a non-existent death.

They then use the death certificate issued by the Department of Home Affairs to lodge a claim using their victim’s policy.

Alternatively, fraudsters steal their victim’s personal information to take out a policy. Later, they register the ‘death’ of their victim and submit a claim against the policy.

“Investigators at Old Mutual routinely examine transactions to uncover fraud and, where necessary, seek the assistance of the SAPS to investigate and prosecute fraud. Our working relationship with the police also involves assisting officers with investigations,” says Khutlang.

“We are committed to ensuring that those who make financial sacrifices to provide loved ones with dignified funerals are not subjected to the additional stress and misery caused by people who prey on others,” says Khutlang.

“By being vigilant, our customers can help us stamp out this criminal activity.”

This post was based on a press release issued on behalf of Old Mutual.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Maya Fisher-French author of Money Questions Answered

Previous Articles

Video: Five ways to trick yourself into saving

Behavioural scientists have found that we feel loss far more greatly than gain, which is why the idea of cutting back on our lifestyle makes us very unhappy. We feel the sacrifice immediately but only reap the benefits in the future. While it may be a tough ask to...

When debt review works

Going into debt review is like going on a diet: it’s difficult to stick to and the results won’t be immediate, but it can be life changing. While there are serious issues around the way some debt counsellors conduct themselves, for Grace Bekwa, debt review gave her...

Listen: Creating Generational Wealth

Generational wealth is passed down from one generation to the next. But ultimately it has different context for different people. Generational wealth doesn’t have to be the Oppenheimer’s legacy. It could be leaving your children enough money to buy a home, or the...

What should you expect from a financial adviser?

I have worked in the financial industry for over 25 years and there is very little I don’t know about investing and managing money, yet I use a financial adviser. About 15 years ago I realised that while I knew about investing and money, I needed to have the input of...

SARS issues audit requests upon ceasing tax residency

The experts at Tax Consulting SA warn of the dangers of simply assuming you no longer have tax residency status in South Africa. There is an alarming number of South African expatriates relying on the 'tick-box' approach to cease their tax residency, while some simply...

How tax works on your retirement fund

One of the most common complaints I receive from pensioners is that they pay tax on their retirement benefits. While one can sympathise with the plight of pensioners who often struggle to come out on their retirement income, one needs to understand the tax structure...

Don’t rush into debt review

While debt review can be a lifeline for an over-indebted consumer, it should not be entered into lightly. You need to be aware that once you enter debt review, you cannot apply for new credit, and you cannot exit debt review until all your debts are settled. There is...

It’s time to spring clean your finances

“When you don’t know where your money is, when you have no filing system for your important documents, when you dive into your pocketbook to pull out crumpled bills, when your car looks like a garbage can, when your closets are filled with junk and clutter you cannot...

SARS issues guidance on crypto assets

On 27 August 2021, SARS provided further guidance on the correct tax treatment of crypto assets and how this must be declared in people’s tax returns. SARS published a document on its website entitled Crypto Assets & Tax. The publication should perhaps best be...

Self-service facility for GEPF members

Technology is making it easier for GEPF members and pensioners to keep track of their pension information and claims process. By downloading the new GEPF self-service mobile app onto your device, you can remove the frustration of standing in long queues at GEPF...

Pin It on Pinterest

Share This