The US Government's Federal Bureau of Investigation is cracking down on life insurance fraud. There were 529 cases of financial crime investigated by the organisation in the last year and 209 of those regarded insurance fraud. The FBI releases a yearly report to the public and these revelations were included in the latest instalment.

The report has confirmed that the number of fraudulent claims which are being filed is expected to rise due to a number of natural catastrophes, including hurricane Katrina and the California forest fires. Various types of financial fraud are discussed in the paper but life insurance fraud holds a prominent place. Money laundering and insurance fraud involving arson were also attacked by the agency.

According to the Insurance Journal: “ Katrina generated approximately 1.6 million insurance claims totalling $34.4 billion in insured losses. Of the more than $80 billion in government funds appropriated for reconstruction efforts in the region, it is estimated insurance fraud accounts for between $4 and $6 billion.” The FBI created a special team in the wake of hurricane Katrina to tackle these fraud issues and now the FBI's financial crimes team are taking special care in cracking down on similar fraudsters.