Insurance Fraud - Spotting Insurance Scams

Types of insurance fraud and scams - automobile,accidents are a common form of this type of
home, life and health insurance fraud. How to spotfraud. This is when a scam driver will stop
and report them.suddenly in front of a car deliberately so they
The majority of people who commit insuranceother car rear-ends them. Another popular scam
fraud don't think they're hurting anybody directly.is when there's already an accident, you add
In fact, they think they're hurting majordamage purposely in the hopes to collect more
corporations who have enough money that theymoney. Often times, this works, which is why it's
don't care anyway. This is not the case. In theimportant to take photographs of the damage.
United States, insurance scams cost an estimatedAnother form of insurance fraud is when the
$875 per person anually. It adds up to approx.beneficiary tries to collect the benefits while the
$80 billion per year, and with the rapid growth ofinsured is still alive. This is called life insurance
technology, it's getting harder and harder to catch.fraud. The best thing you can do in this scenario is
There are different types of insurance fraud.to know your insurance broker. When you go in
One of the leading forms of insurance fraud is into pay your premium on the insurance, don't pay
our health care system. Health care fraud resultsin cash. make sure you understand your policy,
in over $30 billion per year in the United States.and if you don't, bring it to someone who does.
There are two kinds of health insurance fraud:And last but not least, I want to talk about fire
member fraud and provider fraud. An example ofinsurance fraud. This form of fraud is very
member fraud is when you deceive yourcommon because it's hard to prove. If you lose
insurance company by purposely not declaringyour house to a fire, who's stopping you from
something, where an example of provider fraud isdeclaring stuff you didn't have in the first place?
if you were to bill for a service that was neverThere is no real way to prevent this kind of
rendered.fraud. This will haunt you in your taxes and that's
One fast-gorwing form of insurance fraud isabout it. The best thing you can do is report it if
automobile insurance fraud. Staged rear-end caryou hear of anyone making false claims.