What Are Some Examples of Insurance Fraud?

According to the insurance industry, 3% to 10% of all insurance claims could be fraudulent. Many reports also report exaggeration. For example, if someone steals a TV, they will often hide their computer and radio and include it to the report. These are usually people who want to make a quick buck, or have been forced to take the hard road due to financial difficulties such as bankruptcy. We also have the usual criminal offenders as well as organized crime. Many members already have a criminal record and are looking to get insurance frauds on an ongoing basis. These fraudsters are stealing money from people who have insurance and those who pay premiums for extra security.

Auto Insurance Scam

Let’s take a look at an organized scam that involves many con artists. You get up and dress for work. Then you drive through your community to your job. You don’t know who it is, but someone is following you. The car that is following you will pass you at one point and then hit the brakes, causing a rear-end crash. In panic, you may forget about the events and facts that occurred before the crash. The driver you ran onto will quickly approach you and ask you what’s wrong. Is everything fine? Do you need to see a doctor? You can always call me if you wish. No? Let’s look at the situation. We need to call a tow service or a car body shop. I have one in my phone. Also, we should have proper legal arrangements. I will call my lawyer to help us. Perfect! You think, “Hmm that’s the most amazing accident I’ve ever seen!” You don’t realize that the Car Shop paid the driver to run on you. As part of the game, the doctor and lawyer waited for the call. Your insurance or you will pay for the doctor, lawyer and storage fees. You should read all the terms and conditions before signing any papers if you are involved in a car accident. Accept no offers of services from anyone in the collision.

Scam on Insured Documents

Let’s take a look at a fake travel insurance claim. Despite the fact that most airports are now fully automated and computerized, many packages still get lost. The cost of insurance for lost baggage is often lower than that paid when you carry your luggage at airports. These bags can be “lost” by organized criminals to make it easier for them to obtain insurance money. In such cases, there is more likely to be an insider who assists the person about to “lose their package”. The same applies to documents and insured papers. They can get lost on the way.

Fake paper claims

It’s quite simple. This con artist is trying trick the insurance company by convincing them that an event has never occurred, but only on paper.

Fake or bogus insurances

It is a small business. You have a small budget to start. However, if you want your business to succeed, you will need to have insurance for it. To find the perfect deal, you look online, in newspapers and all over the internet. You find a great deal at a very affordable rate. You call the agent, sign the papers and are happy that you found him. You call the agent and sign the papers. Two months later, one of your employees becomes sick. It turns out that you signed false insurance and paid the money to a thief.