Private Investigator in Cedar Rapids Serving All Eastern Iowa
THE THREE FLAVORS OF FRAUD
April 10, 2015
Insurance fraud is a growth industry today, perpetrated by professional swindlers, attorneys, and dishonest doctors. Also, insurance companies unfortunately appear as fair game for, “honest” people who wouldn't dream of committing a “real” crime. Most of the work that Patriot Investigations performs is directly or indirectly related to insurance fraud. There are three categories of fraud that are investigated:
Falsification of Facts Whether a claim is completely falsified or select facts are exaggerated in favor of the claimant, both constitute attempts to obtain money to which the claimant is not entitled. That’s stealing and the difference is only a matter of degree. The fraud may be perpetrated by just the claimant himself or it may also involve the elaborate collaboration of doctors, lawyers, and auto repairmen. The more people that are involved, the more difficult it is to sustain the fraud.
Allegations of Injury A very common fraud is to file claims against the insurance company for non-existent injuries that are difficult to verify. Everyone has seen the TV scene where the guy gets a little bump from the car behind him and starts whining about his neck or back aching. Then he appears in court with a neck or back brace and claims he can’t work because of the pain. What he doesn’t know is that the insurance company has hired a PI to obtain footage of him playing football with his kids in the yard. Busted!
Third-Party Fraud In this third type of fraud, the claimant is completely innocent and becomes the naïve pawn in the padding of a repairman or doctor’s bill. Insurance companies are seen as big pockets for the unscrupulous repairman or doctor. That’s why insurance companies will ask for several estimates before approving repairs.
Experienced insurance adjusters have seen it all and they can smell a fraudulent claim like yesterday’s garbage. They have a well developed ability to spot the danger signs in fraudulent claims. I could tell you what they are but if you don’t know already, you’re probably an honest person. Let’s keep it that way!