29 Jan Top 10 Types of Insurance Fraud
Minor Car Damage Scheme
The most common type of auto insurance fraud is when an individual reports minor damages to their vehicle, collects the money, and then never has any work performed on the car.
Engineered Home Fires
A homeowner will remove all priceless items from the home (like photo albums, collections, etc..) and then stage a home fire in order to collect some quick cash.
Reporting False Thefts
In most cases of theft fraud, the owner exaggerates as to the value of the items that were stolen. However, some people go as far as to report stolen items that were not really stolen.
Fraudulent Stolen Car Claims
Faking a stolen car is a popular form of fraud that can be carried out in a number of different ways. Some individuals will simply dump the car somewhere and hope that it’s never found. Others go as far as to sell the car to a chop shop and have it disassembled and sold for parts.
Car Accident Scam
An individual uses a current accident to claim damage that happened in the past. Sometimes several people will conspire to stage an accident just to get a claim.
Natural Disaster Damage Fraud
In the wake of a natural disaster like a major storm, tornado, or earthquake, insurance companies get overrun with claims. Some people will take advantage of this and enhance the damage to their property in order to get a bigger payday.
Health Insurance Fraud
There are times when a health care provider will bill an insurance company extremely high fees for low cost procedures.
Unnecessary Medical Procedures
Doctors will sometimes force patients to go through unnecessary testing just to increase the amount they can bill an insurance company.
Renter’s Insurance Fraud
Renter’s often take out a renter’s insurance policy because it’s so cheap. When they decide to move, they will sell their stuff and then report it stolen.
Criminals sometimes take out life insurance claims and then fake their own death. They need an accomplice to carry out this type of insurance fraud.