From car accidents and worker’s compensation claims, to natural disasters, insurance companies are there to help their customers in a time of need.
Unfortunately, there are many people who attempt to defraud insurance companies for their own personal financial gain. It is estimated that $80 billion in fraudulent insurance claims are filed in the United States every year. These criminals make false claims that allow them to collect insurance payouts or lower their premiums.
Fraud Investigations for Insurance Companies
From faking a death to falsely claiming they were injured in an accident at work or otherwise, there are plenty of ways for individuals to gain illegal payouts from insurance companies.. Another common tactic is for scammers to give insurance companies false information in an effort to lower their premiums. Some immoral drivers in urban areas with high premiums, for example, might tell their insurance company that their vehicle is registered somewhere else.
These frauds cost insurance companies and honest insurance policy holders lots of money every year. In fact, the FBI reports insurance fraud costs an average U.S. family and business between $400 and $700 every year due to increased premiums from false insurance claims. Rising insurance premiums due to fraudulent activities have resulted in an increase in fraud investigations for insurance companies and their policyholders.
How Fraud Investigations for Insurance Companies Help
A fraud investigation is the perfect way for any organization to get to the cause of possible fraudulent activities, but it is important that these investigations are conducted the right way. Some of the investigative tools used to uncover and determine the extent of malfeasance include the following:
- Talk to witnesses that were around when the incident occurred. This is a great way to get an unbiased account of what actually took place during an incident including those accidents involving worker’s compensation claims.
- Research the people and the companies that are involved in the claim to see if they have any suspicious incidents from their past. For example, several instances of crimes related to fraud on a person’s criminal report may cause insurance companies to take a closer look at any claims that they make, to ensure that they are valid
- Compiling the evidence gathered in a way that will be presentable in the courtroom, which is important to make sure that the case can be proved and the company as well as any victims involved can be properly compensated for being wronged financially
Fraudulent claims are a serious problem for insurance companies. Fortunately, with some attention to their investigation techniques and the right kind of people on the job it is possible for insurance companies to detect fraud before it becomes a serious problem. Fraud investigations are an important defense against a costly crime that has a wide-reaching effect on many different people and organizations.
Veriti Consulting LLC provides professional insurance fraud investigation services across the U.S.
Learn more about our business services by calling 855.232.4410 or contact us via email.
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