How To Deal With Contractor Fraud

Contractor FraudOne of the most popular categories of fraud is the Contractor Fraud (also known as Home Building Fraud or Home Renovation Fraud). This term applies to the illegal practice of renovating, reforming, repairing, rebuilding personal property by misrepresentation of services, inflation of costs and project remuneration. It is usually practiced by small firms, or incredulous individuals that guarantee quick repairs for low prices. Generally, those repairs and upgrades are unnecessary, or even harmful for your property.

Do not forget that not all the contractors are con-artists – most of them are honest workers, but still be careful with all the warning signs that we will mention below and make sure you do everything possible to protect your budget and your property.

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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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Federal And State Crimes – What Are They And How Can You Differentiate Between Them?

Probably everyone has heard about federal and state crimes but the majority of people doesn’t differentiate them. Let’s make it clear and define both of the terms.

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Federal crime is an illegal act that is made against U.S. federal legislation and is prosecuted by federal criminal law. Federal crimes are investigated by:

  • Internal Revenue Service (IRS)
  • Federal Bureau of Investigation (FBI)
  • Drug Enforcement Administration (DEA)

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When federal cases go to trial they are prosecuted by United States Attorney in each judicial district in accordance with already established laws. Federal crimes can range from illegally downloading songs from Internet to RICO, drug trafficking, corruption or immigration crimes.

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How Does The Criminal Justice System Work?

Criminal justice system is meant to control crime and prosecute those who violate laws. Asking yourself how does the criminal system work? Well, a case begins with:

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  • investigation of the crime by the law enforcement officers
  • gathering evidence to identify the perpetrator and use it against them
  • making an arrest
  • examination of the evidences by the court and determining whether the defendant is guilty or not
  • if guilty, the convicted party will go to prison or receive probation.

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Property Crimes – Non-Violent Intent to Deprive the Owner of Their Property

Property crimes have been always a central problem in every society and culture throughout the history. Property crimes consist of taking someone else’s money or property without using force.

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Property crimes include:

  • Burglary
  • Theft
  • Arson
  • Larceny
  • Shoplifting
  • Vandalism

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Robbery is not regarded as a property crime, because it involves the use of force or threat of force, that’s why it is categorized as violent crime.

According to the FBI Crime Statistics there were in 2012,  8,975,438 property crimes with $15,5 billion calculated damages.

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Auto Insurance Fraud Costs Americans $20 to $30 Billion Annually

Auto insurance fraud is becoming a great problem in the United States. Auto insurance agencies are paying billions of dollars each year to cover them, that leads to increased premiums even for those who didn’t commit fraud.

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Auto insurance fraud is committed against an insurance company in order to receive financial gain. According to the National Insurance Crime Prevention bureau auto insurance fraud costs Americans $20 to $30 billion annually.

insuranceAuto insurance fraud can be “hard” if it consists of an intentional set up of a situation such as car theft or an automobile accident. Soft insurance fraud is regarded as a minor offense, when a person takes advantage of a situation that has already occurred by pretending that the injuries were more serious that they actually were.

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