Insurance fraud is a crime that we all pay for in the form of higher premiums for our home, auto and business insurance. However, 10% of the population still thinks that “insurance fraud doesn’t hurt anyone.” Nothing could be further from the truth! According to the Coalition Against Insurance Fraud, fraud steals about $80 billion a year across all lines of insurance. Yikes. And for some people, the cost is much higher than dollars and cents – if you are unlucky enough to be one of the victims of these criminals, you could lose your identity, your good credit, your life savings, or even your life.
Every year, the Coalition Against Insurance Fraud issues lists a rogue’s gallery of the worst, most egregious insurance criminals from the prior year. Recently, they named 8 criminals to the 2016 Insurance Fraud Hall of Shame. One of the purposes in publicizing the list is to educate and alert you, the consumer, about the scope and type of fraud crimes that are out there.
Here’s a sneak preview of some of their crimes to give you an idea of the severity – you can read the full stories of their crimes from the Coalition Against Insurance Fraud site.
- Neighborhood blows up in botched insurance arson
- Epic crash ring braked after $279-million whiplash spree
- Lawless libido traps cheater in partner-swap comp romp
- Oh deer! Mob associate uses deer parts to stage car wrecks
- Samaritan scammer shotguns legs to steal disability insurance
- Dad murders infant for $750,000 of life-insurance money
- Bedridden girl starves to death while nurse shops
- Doctor peddles $60 million of unneeded drugs to poor people
Reporting insurance fraud
One way to combat this type of crime is to report it. Here are some ways to do that.
- Report it to your insurance company or your insurance agent
- Report it to your state insurance regulators
- Report it to the National Insurance Crime Bureau (800) 835-6422
- More fraud reporting resources