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.

Continue reading

Legal Cartoon

Compliments of Mark Anderson of Andertoons

Health Care Fraud Costs U.S. $80 Billion A Year. How Much Does Health Care Fraud Cost You?

000

According to the FBI, Health Care fraud costs U.S. $80 billion a year. Health Care fraud is a crime that involves the filling of a deceitful health care claims in order to receive a profit. Health Care Fraud covers such types of fraud as:

  • General Insurance Fraud001
  • Medicare Fraud
  • Medicaid Fraud
  • Prescription Drug Fraud
  • Medical Identity Theft

Continue reading

Medical Identity Theft: What Are The Reasons For This Fraud Crime? What Are Your Risks?

Medical identity theft is one of the fraud crimes that has increased over the past years in the United States. According to the Ponemon Institute 1.84 million people were victims of medical identity theft in 2013 with an estimated total cost of $28,6 billion.

id

It is illegal to use a person’s identity or personal health information to receive health care services. Some people intentionally commit fraud against “themselves” by allowing uninsured people to use their health insurance to obtain care. This is called “Robin Hood” crimes and it constituted 30% of medical ID theft in 2013.

rh

There are different reasons for stealing someone else’s medical identity:

  • obtain prescription drugs to sell them
  • get free treatment
  • falsify or inflate treatment claims

 

Continue reading