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. The schemes that insurance fraudsters create can range from lying about damage or loss of property to deliberately crashing a car or committing arson. These fraudulent activities affect the lives and wallets of innocent people through accidental injury or damage, as well as the crimes that cause insurance premiums to increase. It’s important to learn about the types of insurance fraud, what to look for and how to report fraudulent activities to help stamp out insurance fraud.
Insurance Fraud Categories
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 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 to receive money or other reimbursements. Employers can commit
workers’ compensation insurance fraud by under-reporting employee levels or misstating the type of duties performed by workers.