Insurance Fraud
Its a dirty business that can all too often result in far more damage than just the increased cost of insurance. This is not a victimless crime; in schemes such as staged auto accidents and arson, innocent people are hurt or even killed.
The NICB has identified the 10 cities with the highest numbers of staged auto accidents, and Philadelphia sits at number five. Staged accidents can take many forms. In one ploy, a driver brakes suddenly in front of an unsuspecting motorist, causing a rear-end crash. In another plot, the driver waves a car into a merge, then intentionally hits the car.
Fighting insurance fraud is serious business, leading insurance companies, consumer advocacy groups and even individual state attorney general's offices and insurance departments to establish task forces that identify, fight and prosecute cases. Prompted by the prevalence of insurance fraud, 44 states have set up fraud bureaus. These agencies are reporting a record number of new investigations and significant increases in referrals (tips about suspected fraud) and cases brought to prosecution.
Fraud may be committed at different points in the insurance transaction by different parties: applicants for insurance, policyholders, third-party claimants, or professionals who provide services to claimants. Common frauds include "padding," or inflating actual claims; misrepresenting facts on an insurance application; submitting claims for injuries or damage that never occurred; and staging accidents.
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