The Fraud Examiner
Fraud Week Spotlight: The Top 5 Insurance Schemes
Editor's Note: Goldstein Law Group is one of more than 1,000 Official Supporters of International Fraud Awareness Week, November 16-22, 2014. In this article, the author shares his insights on fraud gained from years of experience working with clients in the insurance industry.
By Frank Goldstein
Insurance fraud is a year-round threat. While we must remain vigilant at all times, the celebration of International Fraud Awareness Week should serve as a reminder that the battle is far from over.
Goldstein Law Group works diligently on behalf of insurance companies doing business in South Florida – a hot-spot for fraud over the years. To help others recognize potential schemes, our firm has compiled a list of the top five insurance frauds we regularly encounter, and why it’s important to combat them.
1) Staged auto accidents have become so prevalent, they often aren’t news. While the details vary, there’s a classic pattern to the cast of characters running these scams, including accident organizers, illegally solicited patients and unscrupulous professionals willing to file false insurance claims. It takes patience and perseverance to uncover the ring leaders, recover misappropriated funds and reduce the incidence of these schemes.
Sometime car accidents aren’t really accidents, making consumers unwitting victims or innocent bystanders. By actively combating staged accident schemes, insurance companies and law enforcement can begin making a dent in a crime that impacts consumers everywhere, who are paying higher insurance premiums to cover the cost of staged accidents.
2) False auto theft claims are one of the most popular fraud schemes among non-professional crooks. Although most perpetrators aren’t professionals, they can be incredibly creative. Individuals might create fake vehicle titles or registrations for nonexistent antiques or luxury cars, report them stolen and file a claim. These scams cost the public billions of dollars annually and, unfortunately, they’ve become more commonplace as people resort to desperate measures to raise cash.
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