How Banks and Insurance Companies Defraud Their Deceased Customers

 

 

Defrauding the account of a deceased customer is illegal and unethical. Banks and Insurance companies are typically subject to strict regulations and internal policies designed to prevent such activities. However, one of the ways a lot financial institutions officials enrich themselves is through the account of a deceased customer. In most cases, individuals within these institutions may attempt to defraud the estate of a deceased customer. Here are some potential ways this could happen:
 
Unauthorized withdrawals or transfers: A dishonest bank employee might attempt to withdraw funds from a deceased customer's account without proper authorization, using forged signatures or other deceptive means.

Falsifying documents: Employees might create fake documents or alter legitimate ones to gain access to the deceased customer's accounts or assets.

Delaying access to funds: Some institutions may intentionally delay the release of funds to the deceased customer's beneficiaries or heirs, causing financial hardship or allowing the bank to earn interest on the assets.

Misappropriation of insurance proceeds: In the case of insurance policies, a dishonest agent or company employee could divert the payout intended for the beneficiary to their own account or a third party.

Identity theft: If the deceased customer had a joint account holder or beneficiary, a dishonest individual may attempt to impersonate the deceased to access the account or insurance benefits.

Beneficiary fraud: In cases where the deceased customer did not update their beneficiary information or the beneficiary designation is disputed, someone may attempt to claim benefits to which they are not entitled.
 
To protect against these risks and ensure the fair distribution of a deceased person's assets, it's essential to take the following steps:
 

1. Promptly report the death to the relevant financial institutions and insurance companies to freeze accounts and prevent unauthorized access.

2. Obtain multiple copies of the death certificate as it is typically required for various financial transactions. 

3. Work with an attorney or executor of the deceased's estate to navigate the legal process of settling the estate, including verifying beneficiaries and distributing assets according to the will or state laws.

4. Keep detailed records of all financial transactions and communications with banks, insurance companies, and other institutions involved in the estate settlement.

5. Be cautious of anyone pressuring you or making unsolicited offers related to the deceased's finances or insurance policies. 

6. Familiarize yourself with the relevant laws and regulations governing the distribution of assets in your jurisdiction to ensure that your rights and those of the deceased's beneficiaries are protected.

 
If you suspect any fraudulent activity related to a deceased customer's accounts or insurance policies, it is crucial to report it to the appropriate authorities and seek legal assistance to rectify the situation.

While you are alive learn the common ways you can set up your account to make things as simple as possible after your passing;

 
KEY TAKEAWAYS

•  Adding transfer-on-death (TOD) or payable-on-death (POD) beneficiaries to your account is the easiest way to ensure your heirs have easy access to your account after passing.

•  Setting up a Will or Trust can help your heirs access money after your passing, but your account can still be part of the probate process.

•  Adding joint account holders with rights of survivorship makes things simpler after you pass but can also lead to complications while you live.

•  Doing nothing will make things more complicated and stressful for your survivors; ensure you have something in place for their sake.