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Why Should You Be Worried About Insurance Fraud

January 2, 2016 by  
Filed under Blog

Insurance FraudThere are a plethora of reasons why you should be concerned about insurance fraud, even if you have never been a victim. Being one of the U.S.’s largest crimes (after tax evasion), insurance fraudsters are seeking for ways to pick your pockets to fill their own. It isn’t surprising to know that insurance fraud happens every day, in each state. Regardless of age, gender, race and income, anyone can be victimized by this ruthless offense.

According to the estimations made by the Coalition against Insurance Fraud, the losses account as much as $80 billion per annum.

Here are some reasons why you should be worried of insurance fraud:

Your Hard-earned Money Is Stolen

People who trust such offenders and criminals end up getting swindled by them for more than thousands of dollars. For example, there are a number of dishonest contractors out there who steal your insurance payout and vanish without mending your roof.

Injuries & Death

Home arsons and invasive surgeries are one of the most commonly heard crimes within insurance fraud. Such insurance schemes include causing injury, and can even resort to murder , in some extreme cases.

High Premiums

Typically, automobile insurance and homeowners’ insurance premium prices stay high. This is because the insurance companies pass on the high prices to the policyholders like you.

Prices of Consumer Goods Increases

Since businesses further pass on the high cost of health and business insurance to customers, the prices of goods you purchase from super markets and departmental stores also increases.

Honest Businesses Are Driven Out

As insurance fraud costs are indirectly borne by honest policyholders, honest businesses lose millions of dollars in annual income, and are eventually driven out of business.

Trends to Observe

Despite the encouraging and facilitating measures, such as insurance fraud investigation firms that are being taken to counter insurance frauds, there are a number of trends that everyone should be on the lookout for:

Large Fraud Rings

Organized fraud rings are spreading everywhere like fire. These rings are well aware of the insurer payment systems which allow them to make large volumes of claims in a short span of time. More than anything, staged crashes and health insurance fraud rings are ting active.

Aging Boomers

Since more and more baby boomers are retiring and reaching a phase of their life where they need more healthcare than ever, the senior citizens are likely to be the prime targets of such swindlers and criminals.

Medical Identity Thefts

This is another one of those established schemes that are spreading. The increasing threat of cyber attack over healthcare databases is encouraging medical identity thefts. Hereby, the criminals gain information about people and then make fake treatment claims.

That’s it for insurance fraud. Seeking assistance of insurance fraud investigators? National SIU’s special investigations unit will have you covered for all kinds of fraudulent insurance claims. Learn how to report insurance fraud or contact us for further assistance.

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