Types of Insurance Fraud

Most Popular Types of Insurance Fraud 

The will to make big money in a small time-frame often leads people to wrong paths. One of these shortcuts that people tend to take is the way of insurance fraud. Insurance policies are there to reduce risks, and insurance frauds create irony by increasing the risk for society. There are many types of insurance fraud that have been committed in the past and are ongoing. Some insurance frauds are more popular than others. Some common scams are:  

• Disaster fraud: The cost of disaster insurance has been increasing rapidly. As more and more natural disasters such as hurricanes and earthquakes are becoming prevalent, disaster fraud is also gaining importance. However, during natural disasters, it is difficult to cross-verify claims as there are many claims, and the damage is vast. In such tough times, people tend to take advantage of the situation and make false or inflated claims for the damages that might or might not have happened due to natural disasters.  
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• Car insurance fraud: Car insurance fraud can be of false damage fraud, inflated damage fraud, accident fraud, or theft fraud. When an accident has happened, a person might inflate damage estimates to get more claims. Also, staged accidents or theft of vehicles are popular among the types of insurance fraud. A person might sell off the car and call it stolen to get claims.  
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• Life insurance fraud: Most people are aware of life insurance fraud. Life insurance fraud can lead to serious crimes such as murder so that people get their insurance claims after death. Staged deaths can also be a part of life insurance fraud.  People might fake their own death to receive claims and fake their identity to start a new life later on. 

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• Health insurance fraud: Medical professionals are generally involved in this type of fraud. Your doctor might bill you for procedures that are unnecessary or overcharge you for required lab procedures to defraud the insurance companies.   

We must all look out carefully for these types of insurance fraud and take strict actions to put fraudsters behind bars.