Insurance Fraud is a billion dollar problem.
According to the FBI, the estimated loss for life and casualty insurers is $40 billion dollars a year. The cost to health insurers can be as much as $259 billion.
Companies large and small find themselves at risk. But the costs for large companies are the greatest, significantly trimming their bottom lines. An investigator can help insurers keep what’s theirs, so they can do what’s right for those who do have legitimate claims.
Let’s explore 5 high-cost reasons you’ll need to hire an insurance fraud investigator.
Stolen Cars
As you know when one of your insured has a car stolen, there’s actually a significant chance that the insured is involved.
According to the National Insurance Crime Bureau (NICB) 2 common stolen car scams you need to be concerned about are:
Owner Give-Ups
The owner lies about the theft and has the car destroyed in order to collect insurance money.
30 Day Specials
The owner hides the car and reports it stolen. After the claim is settled, the car is “miraculously” found. This scam is often used when the car needs major repairs.
These schemes can be hard to spot. And insurance fraud investigator will use technology and an analytical mind to help you scour claims. Through this, they can identify suspicious patterns to identify fraudulent activity.
Car Accidents
The lengths that people will go to stage accidents likely astounds you. These crimes are often sophisticated, making them difficult to prove. Sentences for this type of fraud has been historically low, as little as community service. This makes it a very lucratlow-risk risk crime.
Not only are insurers forced to pay out, but innocent bystanders and those in other vehicles are often put at risk during this crime. Innocent drivers may see their premiums go up when they are blamed for the accident.
In a “swoop and squat”, for example, a driver pulls in front of another driver suddenly and then slams on his/her brakes. The driver rams into the scammer and is considered at fault.
But an insurance fraud investigator can help identify these fraudsters and gather the proof needed to dispute the claim.
Fake Home Fires
Those involved in fake home fires are often well-organized and calculating. They do their research and execute a smart plan.
Recently, in Richmond, VA, thanks to an insurance fraud investigator, 6 people were arrested for an alleged multiple home fire scam through which they had been collecting money for 16 years. Thus far, they had collected nearly $1 million.
Thankfully, this alleged crime was finally stopped through insurance fraud investigation.
Health Insurance Billing
Health insurance fraud often takes years and millions of dollars in false claims to confirm. Medical professionals, who are often seen as pillars in the community, betray that community’s trust.
A fraud investigator can help you get to the bottom of this criminal activity to stop the crime and see justice served.
Organized Crime
The NICB reports that insurance fraud is big business for organized crime groups who have the resources, the people and the know-how to pull off large scale insurance schemes.
They can make their crimes appear to be unrelated as the insured individuals may have no inherent red flags. The schemes may encompass several countries.
Working through these intricate schemes, an investigator puts the pieces together to get a big picture of the operation. This requires in depth knowledge of how these enterprises work.
Hire An Insurance Fraud Investigator
When billions are at stake you need a company with international resources and connections. This company should be able to put the pieces together to identify that fraud is taking place.
At Worldwide Resources Inc., we’ll help you win against insurance fraud. Start an investigation today.