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Insurance Fraud Prevention

The Crime of Insurance Fraud

Insurance fraud occurs when a person or persons make money or attempt to make money from insurance transactions through deception, lying, cheating or stealing for profit. Schemes that insurance fraudsters create range from lying about damage or loss of property to deliberately crashing a car. Insurance fraud schemes can cause accidental injury to the perpetrator or innocent bystanders, and insurance premiums increase as a result of insurance fraud.

Insurance Fraud Categories

Property Fraud

Property fraud is committed by overstating the amount of damage to one’s home, car or other property. This includes deliberately damaging possessions to gain insurance reimbursement or submitting false claims about loss or theft of property. Both home or renters’ insurance fraud and vehicle-related insurance fraud fall into this category.

Casualty Fraud

Casualty fraud occurs when someone fakes or exaggerates an accident or injury to gain money from insurance providers. This sometimes accompanies property fraud during staged accidents and other types of vehicle-related insurance fraud.

Workers’ Compensation Fraud

Workers’ compensation fraud is committed when a person or persons make claims about a work-related injury that either didn’t happen at all or occurred away from the workplace. Employers can commit workers’ compensation insurance fraud by under-reporting employee levels or misstating the type of duties performed by workers.