Well if they do it correctly, we would never know whether they fake deaths or not. It would only be if someone was recognized.
I believe they do. Especially with crimes where a witness or informant would be hunted down relentlessly if criminals thought he was alive.
Or if the criminal in question had powerful ties with the police, politics, or a lot of money - this would make it difficult to simply "hide" someone, so a faked death scneario would be beneficial.
I believe that is what happened to Tupac.