What you Need to Know About Insurance Fraud

Billions of dollars are lost each year due to insurance fraud. Insurance fraud is becoming one of the largest crimes in America. Honest hard working individuals and businesses are being taken advantage of by criminals involved in this type of fraudulent activity. Insurance fraud occurs when people deceive an insurance company or agent to collect money under false circumstances. Insurance fraud can be “hard” or “soft.” Hard Fraud is a purposeful action that someone takes to fake a serious matter like theft, injury, etc. to collect money illegally from insurance companies. Soft fraud is normally when policyholders exaggerate their claim to receive more money. For example, a driver might claim more damage in an automobile accident to collect a bigger check or inflate the value of stolen items during a robbery.

It is often said that soft fraud is only telling a “white lie”, but it still a crime. Insurance fraud can occur in all types of insurance such as life, health, automobile, etc. In some circumstances it is difficult to judge and determine if fraud is taking place. Criminals are becoming very smart when creating a scheme to scam insurance agencies. Punishment can be severe if caught in an insurance fraud situation. One of the more popular insurance schemes is customers claiming to fall in a store or restaurant. Many businesses have now installed cameras and taken other security measures to insure customer safety and false claims are not being filed.

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