An auto insurance fraud primer and more

Auto insurance fraud is a global fraud phenomenon with billions in losses. This primer will cover the basics plus an innovative way to combat it: social network analysis (SNA). SNA tracks claims patterns among individuals, vehicles, and locations involved in accidents, as well as supports entities such as repair shops, law firms and medical clinics. The result? Evidence discovery.

Here's one way to make money. Members of a California auto insurance ring would drive into each other's cars and then submit false claims. The fraudsters received settlements ranging from $5,000 to $52,000 by claiming that they'd lost control of their vehicles because they spilled hot coffee on themselves. They used the same vehicles, addresses and phone numbers, and sometimes the same names. Most made their claims shortly after buying new auto insurance policies. Pretty good scam, for a while — until the Santa Clara County caught up with them in July of 2015 and arrested 33 ring members. (See 33 Arrested in Major South Bay Insurance Fraud Ring, by Alan Wang, KGO-TV, ABC, July 16, 2015.)