The private companies engaged to assess claims for sickness and disability benefits are paid by the number of claims that they reject and by the number of existing claimants that they force off the books.
So it is no surprise that it rejects a large number of claims while forcing a large number of existing claimants off the books.
As for people who withdraw their claims, they do so because has made them too ill to carry on.
It is hard to get Incapacity Benefit, and almost impossible to get something like DLA.
The question is not why so many people are making "fraudulent" claims, but why so many people really are that ill. What has changed in Britain since the Seventies?
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