Search
 

Hard Times, Claims Fraud, and Mitigation Technology

These are hard times. A lot of bad things happen in hard times. Businesses cut back, and some fail. People worry about losing their jobs, and some people do.

By Donald Light | Updated on July 31, 2009

These are hard times. A lot of bad things happen in hard times. Businesses cut back, and some fail. People worry about losing their jobs, and some people do. Many people think about where they can cut back on their expenses, and some think about how to get more income. Some of these people may decide one way to get more income is to file additional claims with their insurance company.

Strictly speaking, fraud occurs whenever a policyholder files a claim knowingly making false material representations. If John sells his car to a cousin in another state and then reports it as stolen, that is fraud. If Mary accepts a role as a whiplash victim in a staged accident and then visits a designated physical therapist, that also is fraud. Such actions are easy to label as hard and/or organized fraud–and could be criminally prosecuted with sufficient evidence.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.