What is insurance fraud and how can a private Investigator help?
Insurance fraud is one of the most costly scams in the US economy, robbing many Americans billions of dollars every year. According to the FBI, It is estimated that the total cost of insurance fraud is more than $40 billion per year. This means that the average household is paying higher premiums for the fraudulent acts done by many. Anyone seeking compensation through fraudulent claims from insurance companies are committing a crime and is subject to legal repercussions in most states.
A large percentage of insurance bills paid to the insurance companies goes towards reimbursing to fight against fraudulent claims. Because of this, many insurance companies are following strict due diligence procedures and acting with extreme caution when paying out claims to insurers. This may result in needing professional help for someone to receive their claim payout.
Types of insurance fraud
There are many types of insurance fraud — including accident fraud, workers’ compensation fraud, life insurance fraud, property fraud, and more. Insurance companies typically consider fraudulent behavior to fall into two categories: Hard insurance fraud, which refers to claims that are completely fabricated. Soft insurance fraud, which is when someone has a legitimate claim, but inflates the value to receive a larger payout.
Ways that Private Investigators detect fraud
Due to this major problem in the United States, there has been a great opportunity for Private Investigators to investigate this matter and cut down on these fraudulent acts. For insurers, fighting insurance fraud is a serious matter, and companies have created many strategies to take on fraudsters.
Here are a few steps a private investigator will take to detect fraud:
- Carefully review insurance documents
- Conduct visual or audio Surveillance on suspect
- Conduct an investigative research into the claim
- Gather and review all evidence found
- Run a background check on the claimant
- Interview claimant and his/her associates
Confidential Investigations, inc. conducts surveillance and investigative research on claim subjects to see if they are committing fraud in their insurance claim. We provide thorough insurance fraud investigations services, by locating and interviewing witnesses, to record all statements and reports. Our clients receive a full, detailed report pertaining to the findings of our investigations, which can be used against the claimant in court.
We are a private investigation company located in Allentown, PA and we are experts in this matter. If you are concerned about fraud occurring in your company and would like to receive expert help, please give us a call at (610) 821-9112 and we will do our best to help with your case.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.