While insurance is a tool mainly used to help people navigate their way out of difficult situations or recover from disasters, there is no denying that insurance is a major target for fraud and other schemes. These perpetrations can cause great financial losses and other types of damage to both the insured person and their insurance companies.
Without being careful and knowledgeable about the world of insurance fraud, it is possible to become a victim of this sort of crime without even knowing. Here is what you need to know about the different types of insurance fraud and how to keep your private information safe.
What is Insurance Fraud?
Insurance fraud is the intentional act of deceiving, lying, or misrepresenting to obtain an undeserved payment from an insurance policy. This fraud can be perpetuated by both individuals and businesses and is often done for personal gain or financial benefit.
There are many types of Insurance fraud which can include false claims, inflated damage assessments, falsified beneficiary claims, false or inflated theft repair claims, and working while collecting workers’ compensation benefits.
5 Types of Dangerous Insurance Fraud
1. False or Inflated Property Damage Claims
These types of schemes involve making fraudulent reports about property damages to collect money from insurance companies. The perpetrator might make exaggerated claims about the extent of the damage or about additional items that were damaged beyond what was actually affected.
2. Billing for Services Not Provided
This type of fraud involves billing an insurance company for services that were not provided. The perpetrator may also charge inflated prices or bill unnecessary services to boost profits.
3. Falsified Beneficiary Claims
In this type of scam, someone might make a false claim about being the beneficiary on a policy belonging to another person to cash in on the benefits of the policy.
4. False or Inflated Theft Repair Claim
This kind of fraud involves making a claim to an insurance company for items that were never stolen or damaged so that the perpetrator can collect money from the insurer. The perpetrator might also exaggerate the cost of repairs on items that were damaged so that they can collect more from the insurance policy.
5. Working While Collecting Workers’ Compensation Benefits
This form of fraud is when an individual collects disability or workers’ compensation benefits while at the same time working a job or engaging in activities that are not allowed under their policy.
How Can I Keep My Information Safe?
The best way to protect yourself from insurance fraud is to be proactive about protecting your private information and assets. Here are some things to be aware of to avoid different types of insurance fraud:
- Make sure that all of your passwords and accounts are secure
- Never share any personal information with anyone you don’t trust
- Regularly check your credit reports for unauthorized activity
- Additionally, always make sure that you are dealing with a reputable and trustworthy insurer that has a proven track record of providing fair and honest coverage
How Bethany Insurance Can Help
At Bethany Insurance we take pride in our commitment to prevent different types of insurance fraud through careful screening processes and thorough investigations into suspicious claims or activities. Our team also provides expert advice on how to spot fraudulent activity and how to protect your information from being stolen. Contact our experts today so that we can help you take care of yourself and your loved ones.
