Pension Fraud

Any time a financial benefit is due someone and that person dies… there is an opportunity for relatives, next of kin etc., to continue to cash the monthly benefit checks if they continue to be paid. This particular article talks about pension fraud but benefit type fraud is not uncommon in other financial service areas such as disability insurance where monthly checks are sent out to claimants each month as long as they are unable to work. Generally, most financial benefits are supposed to cease upon the death of the payee and no checks should be cashed post death until speaking with the issuing financial institution about the entitlement of the funds. The investigation into these kinds of cases determines whether the individuals cashing the checks post death had intent to defraud or were simply unaware of the terms of the policy and thought these were legitimate “death benefits” payable even though the payee died.