Auto Insurance Fraud in the united state of America is quite alarming and we need to be so watchful to avoid falling a victim. I will discuss this fraud that is going on in the insurance industry with the hope that you spot these frauds and won’t be able to fall, victims, no matter the circumstances.
In today’s world, one of the most popular auto insurance fraud involves actual insurance and auto accidents. where I’m driving to is staged accidents – fakes – rigged. This is staged by a team and its carried out using more than one marked car.
car insurance fraud detection
I’m going to explain in details after gathering our information on how these auto insurance fraud is being carried out.
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- swoop and squat: This usually involves three cars. Two of the cars are usually under the control of the scammers and the 3rd is the unsuspecting victim or “mark”. The driver in the “squat” car puts himself in front of the victim’s car and the “swoop” car pulls in front of the squat car to intentionally cut off the squat vehicle – this action allows the squat car to slam on his breaks which means that usually the victim can’t react fast enough and slams into the squat car. The swoop car continues on – its job complete. As far as the victim is concerned the swoop car caused the accident but since they vanished into thin air the victim is stuck paying for car repairs and injury claims.
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- Sideswipe– The sideswipe scam usually happens at busy intersections that have two left-hand turning lanes. The scammer positions his car in the outer left lane and when the victim’s car enters the outer turn lane the criminal swipes him. In order to have success at this fraud the criminal scouts the intersection out to ensure it’s busy and that drifting can occur.
- Panic Stop: this is very common. This scam involves an old car filled with passengers. The car is driven in front of the mark’s car – one of the passengers will look our the rear window at the victim’s car and will look for any signs of distraction such as answering the cell phone, looking down for a brief moment, turning the radio station or lighting a cigarette. Any possible situation where the drive can take his eyes off the road will work. When his action is spotted the driver of the scam car is notified and the brakes are pressed. The victim will claim they stopped short but it won’t matter and he will have to pay out for car damages and personal injury claims for every person in the car.
These criminals are the scum of the Earth. They figure they are not hurting anyone but a big company. The fact is that they are hurting everyone. Every insurance company is made to pay fraudulent claims and our rates go up due to it.
Unfortunately, the only way to avoid being scammed like this is to be cautious of any vehicle in front of you – obey all traffic laws and if someone in front of you is suspect increase your distance. These scams can only work if you are close enough to make it plausible.
Types of car insurance fraud
- Application fraud happens when you knowingly and intentionally provide false information on an insurance application.
- Illegitimate Denial Fraud is usually committed by insurance companies themselves. This is fraudulent activities on the part of insurers include actions such as denying valid insurance claims, denying coverage to individuals for certain conditions that should be covered, failing to properly investigate claims, and deliberately underpaying claims.”
- False Claims Fraud is related to people who simply invent their claims. This type of fraud when they file an insurance claim under false pretenses.
- Faked Death Fraud is When someone plays dead and tries to file an insurance claim it becomes a felony. Their beneficiary will collect the money and share it with the claimant. At least, that’s the idea. The reality is that it’s a lot harder to get away with faking your own death than most people seem to think.
- Inflation Fraud is the type of fraud that often seems like nothing. It is the simple act of adding a little to the bill when you file your insurance claim.
- False Police Reports are forms of insurance fraud involve filing a false police report.
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