Fraud Crimes. Losses Due to Insurance Fraud. Hard Fraud vs. Soft Fraud

Insurance fraud refers to an intent to obtain some benefits or advantages by means of false andimages misleading information filled in in the insurance document and consists of exaggerated damage or losses that never occurred. According to Crime in the US 2012 FBI Report the total cost of insurance fraud is more than $40 billion per year. In 2011 there were 140 pending insurance fraud cases.

There are two types of insurance fraud:

  1. Soft fraud, that consists of “little harmless lies” in order to maximize the claim.
  2. Hard fraud, that involves falsification of an accident or an injury in order to legally collect money from the insurance agencies.

arson-300x225There are common types of insurance fraud that include: exaggerated injuries, false or exaggerated property loss, car accidents, intentional property damage, arson.

If you don’t want to become a victim of insurance fraud, don’t trust people who sell insurance over the telephone or door-to-door. It is also not wise to give your insurance ID number to people or companies you don’t know. Don’t forget, if an accident occurred to you, make sure you get as much evidence as possible.

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Corporate Fraud – How Corporations And Big Companies Lie About Their Financial Condition

frCorporate fraud refers to large organizations that deceive their investors, analysts and auditors about the real financial condition of a corporation. Corporate fraud results not only in financial losses of the investors, but also creates great potential damage to the U.S. economy.

Such fraud may be accomplished through:

  • manipulation of share prices
  • control of financial datafraud
  • artificially inflated financial performance
  • false indicators
  • different valuation measurements

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