Criminals Fudge Aadhaar To Show Lower Age, Claim Insurance Payout After Victims’ Death

An insurance fraud gang was recently busted in Uttar Pradesh, which involved tampering Aadhaar cards of the victims. The fraudsters deviously fudged Aadhaar cards of victims to show that they were under the age of 50 when they applied for life insurance under a government-backed scheme, thereby claiming a payout of around Rs 2 lakh after the death of policyholders.

What is the Scam

The fraud was perpetrated against the government-backed life insurance scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) which is designed to provide financial security to individuals aged 18-50 years. It offers a sum assured of Rs 2 lakh. In the latest scam, this scheme became a tool for exploitation.

How the Insurance Racket Misled Authorities

The police investigation, which began as a routine check in Sambhal district of UP on January 17, 2025, uncovered this large-scale financial fraud operating in different parts of India.

A report by the Indian Express said that a gang of 19 people, including an ASHA worker, fooled the unsuspecting victims, their families, insurance agents, bank officials and several others authorities.

On March 6, 2025, Sambhal Police nabbed 34-year-old Vinod who changed the date of birth of his father in the Aadhaar card to show he was below the age of 50 to claim the benefits of Rs 2 lakh under the PMJJBY scheme.

Reportedly, this gang operates in 12 states, including UP, Rajasthan, Delhi and Jharkhand.

“Until now, we were investigating cases where life insurance policies were taken in the names of those who had died or were about to die. The gang would pay the premium for some time and later claim the insurance amount. But this time we have witnessed a new modus operandi,” an official told the Indian Express.

The Modus Operandi

The modus operandi of this scam was both cunning and callous. The fraudsters would first identify individuals who are either suffering from any terminal illness or have already passed away. Then, they would forge the Aadhaar details of these people by altering their date of birth to show they are below the age of 50, making them eligible for the PMJJBY scheme.

With these falsified documents, the fraudsters procured insurance policies and, upon the death of the insured, claimed the benefits, often without the knowledge of the legitimate beneficiaries.

The accused, Vinod Kumar, was arrested for possessing two Aadhaar cards of his deceased father, Pancham Singh. The first card indicated a birth date of January 1, 1955, while the second showed July 1, 1976. This deliberate alteration reduced his father's age by over two decades, enabling Kumar to fraudulently claim the insurance amount under the PMJJBY scheme.

The investigation further revealed that the scam was not limited to insurance fraud. The culprits exploited the altered identities to purchase vehicles in the names of the deceased, securing loans and subsequently defaulting, leaving financial institutions in jeopardy.

In Vinod's case, he acquired a tractor, a motorcycle, and a scooter under his late father's name, sold them off, and pocketed the proceeds.