Insurance Fraud Indicators
Dexter Morse, Lynne Skajaa · 2020
This chapter outlines some of the points to bear in mind when reviewing property and casualty claims which might indicate that the claim could be fraudulent. Property fraud normally involves the falsification or inflation of a claim for the loss of personal property in order to obtain a larger settlement. A major disaster provides an ideal opportunity for fraudsters to inflate or fabricate claims. Often at this time an insurer’s resources are stretched due to the large number of claims so they are not in a position to evaluate claims as closely as they normally would. Casualty claims normally arise when the claimant either exaggerates his symptoms or totally fabricates the claims. Staged accident fraud occurs when a person intentionally causes or is involved in an accident and then seeks compensation for these false or intentional damages and injuries. The number of staged accident are increasing dramatically in most countries and the rings are very professional and well-developed.