Spreading Awareness Around Insurance Fraud A Review Of Scams & Fake Claims In The Realm Of Insurance
Fake Claims On The Rise
Insurance companies are always at risk of being cheated and spammed with fake claims. It has been estimated that companies lose billions of dollars mainly because of fake claims, which is why top firms are deploying anti-fraud prevention tools and AI technologies to tackle the problem. In the upcoming slides, we will quickly review and walk you through the most common ways insurance firms get defrauded by their clients.
Auto Insurance Fraud
This has become a lucrative business model for fraudsters. Given the surge in people signing up for “new for old” insurance policies (wherein a new item of the equivalent cost of your old item is used to replace it in case of theft and damage), many scammers are using it to their advantage. For instance, fraudsters may knowingly dispose of a car and then claim insurance on it. The second type of auto insurance fraud is lying that your car has been stolen to claim cash/a new car.
Staged Accidents
Many scammers also stage car collisions for insurance money. This can involve two people knowingly causing an accident and claiming money for whiplash injuries. Given how common this has become, firms have now started to ask for medical tests to know the severity of the condition.
Home Fires
In the past few months, we have reviewed and come across cases wherein people cause fires in their own homes for large claims. Intricately planned, they do away with their most expensive items and then stake a insurance claim for them. Thankfully, if insurers investigate carefully, they may get to know what caused the fire in the first place. This way, they can reject the fake claim.
Fake Commercial Liability Claims
As reviewed by experts, this involves employees making fraudulent, spammy claims on their employer’s liability insurance. They may fake disease or injuries for their own financial gains by making up stories of getting hurt or blowing small workplace accidents out of proportion.
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Presented & Reviewed By:
Yash Dogra, Manager, Money 2.0 Conference, https://www.money2conf.com/