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Common Misconceptions about Fraud

February 28, 2015 by  
Filed under Blog

The supposed “victimless” crime of insurance fraud can cause insurance companies and honest policy holders to sustain financial losses. Fraudulent claimants can come up with different schemes and make inaccurate claims to receive payments for losses that never happened. We at NSIU, help various insurance companies and individuals with the investigation of all types of insurance fraud cases.

In our time in working in the insurance industry, we have learned that many people – companies, professionals and individuals – have some misconceptions about insurance fraud. We will try to clear these misconceptions up by discussing them one by one.

People are Generally Honest

Well, insurance companies don’t really believe that, but there are some organizations that still operate under that assumption, which is fine except for the fact that it can cost them dearly. Workers’ compensation fraud is very common and organizations that don’t mitigate the dishonest practices or take steps to catch the culprits, can suffer financial losses.

Fraud can’t be Predicted

This assumption is completely wrong or we would be out of a job. Looking at patterns and investigating potential fraudsters is part of an investigators job. Organizations that take the proper steps and hire the right investigators can actually predict and prevent insurance fraud claims.

Expecting Help from Law Enforcement

If you are a victim of insurance fraud, you can call in a savvy police detective who will catch the culprit in no time; sounds like a nice fictional plot, but the reality is quite different. Law enforcement agencies don’t have enough personnel to investigate every insurance fraud case; this is why you should invest in a good investigation firm with a SIU (Special Investigation Unit) like NSIU.

Some Fraud is Tolerable

As an insurance company, that is the worst motto you can have. Some companies ignore small insurance fraud cases, the claimants are emboldened as a result and they hatch grander schemes to make larger insurance claims. If a company makes their policy clear about not tolerating insurance fraud and goes after every fraudulent claimant, then they won’t have to deal with as many insurance fraud cases.

Taking a firm stand against insurance fraud is the only way to fight this spreading plague. Call us today (800-960-6748) and learn how we can help you investigate insurance fraud, with the help of our various investigative services.


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