Insurance fraud costs $309 billion annually, equivalent to about $1,000 per American.

what do you do in addition $932.63 in your pocket?

This is the annual cost of insurance fraud per American. $309 billion Overall, according to the survey results, Recent research studies led by meFor a family of four, the total is almost $3,800 – Enough to finance a small family vacation.

This additional cost arises from the increase in premiums that consumers must pay to offset the costs of fraud incurred by the insurance industry. But despite the incredible economic impact on the average consumer, the survey also found that nearly half of Americans felt it was an “acceptable” type of crime. suggests.

This little-known type of scam come in many formsSuch as misrepresenting facts about insurance policies in order to receive a lower premium. This includes not disclosing additional drivers in the household, underestimating annual mileage, and using addresses located in low-risk areas with low insurance premiums.

Another example is when patients try to cover non-motor vehicle injuries by exaggerating their injuries in hopes of getting additional benefits such as better treatment, longer time off from work due to disability, etc. Not only does the bill that others end up paying balloon, but fraudulent charges cause problems. An already busy and stressed healthcare systemcan deprive patients in need of valuable care.

Includes insurance fraud large-scale organized fraud This causes organized international criminal groups and terrorist organizations to launch highly detailed campaigns targeting specific insurance companies. In the past, organized crime groups focused on crimes such as kidnapping, drugs, and extortion as a means of funding the organization. However, my colleagues and I have found that most of these groups have moved on to insurance fraud. This is because the dangers are much lower, the payouts are larger, and the penalties are low or non-existent.

Characteristics of Insurance Fraud

The fact that insurance fraud is high reward and low risk makes it stand out among other types of fraud.

There are dozens of other types of scams involving scammers, all aimed at gaining financial gain or securing valuable personal information for use in other identity theft schemes. From love scams and travel scams to schemes related to jobs and her COVID-19, they all have the same “scam DNA”. psychological tricks to manipulate.

However, due to the nature of the insurance system, there are many gaps in how claims are processed, making them very easy to target and increasing the chances of committing fraud.

It is also a crime to receive Little interest from media and prosecutorsFrom a legal standpoint, fraudsters are highly tempted by this type of crime as insurance fraud cases often move to the bottom of law enforcement and prosecutors’ priority lists.

And given how easily this scam is perpetrated, how acceptable it is to many Americans, and how difficult it is to detect, the level of insurance fraud in the United States is we Only growth is expected.

Michael Skiba I do not work for, consult with, own shares in, or receive funding from any company or organization that benefits from this article.

Leave a Comment