A Mississippi man says he sent $620 after a woman claiming to handle his late sister’s life insurance told him money was needed before the insurer would pay her funeral home.
Corinthian Funeral Home later told him it had received no payment.
Tim Williams, of Booneville, Mississippi, described the request in an October 27 interview with WTVA after his sister, Stephanie Jeanine Williams Machado, died on October 18. Her obituary names Corinthian Funeral Home as the provider handling her services.
Caller Said $1,375 Was Needed Before Insurance Could Pay
Williams told WTVA that the woman wanted $1,375 before the insurance company would release funds to Corinthian Funeral Home. She also gave him what she presented as account and policy numbers.
Williams participated in what he described as a three-way telephone call involving the woman and the funeral provider. He said the conversation seemed authentic, making him believe he was following the proper steps to arrange payment for his sister’s funeral.
When he explained that he had only $620 available, the caller accepted that amount. She told him he could deliver the money to the insurance office or send it through Cash App, whichever was more convenient. Williams chose to send the money to his nephew, who then forwarded the payment through the app.
Funeral Home Said the Expected Payment Never Arrived
Williams began questioning the arrangement after learning that Corinthian Funeral Home had not received the promised insurance payment. He searched the telephone number used by the woman and found information associating it with a man living in Selma, Alabama.
That name did not match the woman who had spoken to him or the name displayed on the Cash App account, he told WTVA.
Williams described the experience as particularly painful because of the sudden loss of his sister. He called the person responsible a “pretty low individual” and urged families arranging funerals to double-check financial requests before sending money.
How Legitimate Life Insurance Benefits Are Claimed
The National Association of Insurance Commissioners explains that life insurance policies pay death benefits to designated beneficiaries when the policy is in effect. Beneficiaries need to identify the insurance company, policy details and available benefit before arranging payment through the insurer’s claims process.
Someone quoting a policy number during an unexpected telephone call has not necessarily established that they represent the insurance company. Families can verify the insurer through their existing policy documents and independently contact the company’s claims department before agreeing to any requested payment.
The Federal Trade Commission has warned about related scams in which impostors claim to represent funeral homes and demand additional money from grieving relatives. In those cases, callers sometimes threaten to cancel services unless payment is made immediately. The scheme Williams described instead involved someone claiming to represent a life insurance company.
How to Verify an Insurance Agent and Report a Cash App Payment
Mississippi residents can use the Mississippi Insurance Department’s licensing search to check whether an individual or company is authorized to sell insurance in the state. The department also accepts reports of suspected insurance fraud through its consumer protection service at 800-562-2957.
For suspected fraud involving Cash App, the person whose account sent the payment should open the app’s activity feed, select the transaction and choose the reporting option. Cash App advises reporting suspected scams promptly, although authorized transfers can be difficult to recover and reimbursement is not guaranteed.
Families should preserve payment confirmations, recipient account names, telephone numbers and messages connected to the transaction. Suspected impersonation fraud can also be reported to the FTC through ReportFraud.ftc.gov.