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life insurance fraud

The Top Risks of Life Insurance Fraud

Many people today have life insurance. It’s a good way to protect family and loved ones from money troubles if something should happen to the policy holder.

Unfortunately, life insurance fraud is a real and unsettlingly common occurrence. So we’ve put together some of the signs that you might be at risk for different types of fraud.

Take a look and make sure that you aren’t ignoring signs of insurance fraud.

Signs Of Life Insurance Fraud By Forgery

Faked deaths or murders may be the most intriguing cases of fraud, but they aren’t the most common. Most life insurance fraud will deal with some type of forgery or unauthorized changes in a life insurance plan.

For example, if someone else gains access to your life insurance policy and personal information, they could change the beneficiaries on your policy. That can lead to legal trouble when it comes time for the policy to pay out. Even worse, your intended beneficiaries might not get the payment from your policy.

Check your policy at regular intervals to make sure everything is as it should be. Have you received a notification of a change you don’t remember making? That’s a sign that some type of forgery may be going on.

Signs Of Fraud By Agents

Fraud by life insurance agents usually takes a couple forms. One type is when the agent diverts premium payments into their own pocket. A sign of fraud risk is an agent asking you to put their name on the check, instead of the company’s.

Ask questions and contact the insurance company if an agent asks you to make a check out to them, rather than the company. And don’t ignore any unexplained cancellation notices in the mail. If you’ve been making payments, that’s a sign that something is wrong and needs your attention.

Agents can also engage in the unethical selling of “upgraded” plans that really don’t offer any better benefits. The higher cost allows them to collect a commission on the plan.

Again, ask questions, do your own research, and request all of your documents. If your agent seems evasive or pressures you, those are signs that you may be at risk.

If you’re using a new agent that you don’t know, check them out on your state’s insurance department website.

Faked Deaths and “Double Indemnity” Schemes

These are the life insurance fraud schemes that you see on TV and in movies. Faked deaths involve claiming life insurance payouts for a person who is still alive, or never actually existed.

Double indemnity plots get their name from the classic 1944 film by the same name. The movie revolves around a murder committed in order to obtain a life insurance payout on a spouse.

Violent plots like this are rare. However, it might be suspicious if a spouse or beneficiary begins pushing you to buy more life insurance without good cause.

Unfortunately, insurance fraud can happen to anyone if they aren’t careful. If you need a fraud investigator, then give us a call today at WorldWide Resources.

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insurance fraud investigator

5 Billion $ Reasons To Hire an Insurance Fraud Investigator

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.

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