Necro-Phonies: Fake Funerals for Fake People Insurance Scam

Insurance fraud is not new, but this one is unusual: "necro-phonies" Faye Shilling and Jane Crump will be arraigned on charges of staging fake funerals for fake people to defraud insurance companies!

When staging the funerals, Shilling, a phlebotomist, and Crump, an employee at a now-defunct Long Beach mortuary, allegedly filled caskets with various materials to make it appear they contained actual corpses, documents show.

After the funerals, the women and their associates filed bogus documents with the county saying the remains had been cremated and scattered at sea, prosecutors said.

The insurance policies were worth $50,000 to $450,000, and the women had already collected on some as large as $250,000, officials said.

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The problem here appears to be the insurance companies accepting the paperwork at face value. I'd expect large companies to have a compliance department that checks up randomly on things like death certificate numbers. A simple call to the issuing authority to check the details on a handful a month would rout out this sort of fraud fairly easily.
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