This post appears as part of Goldstein Law Group’s blog series for International Fraud Awareness Week (November 16-22). This week, GLG attorneys address five types of insurance fraud the firm encounters on a regular basis.
Staged auto accidents have been featured in the news so often they’re hardly news anymore.
Five Arrested in South Florida PIP Fraud Ring. Florida Man Jailed in Staged Auto Crash Ring. Chiropractors and Attorneys Accused in Accident Fraud Ring. Staged Car Scams Target Elderly.
The headlines vary. So do the names, numbers and locations of suspected fraud. But there is a classic pattern to the cast of characters who invariably play a role in each scam, including accident organizers, illegally solicited patients and unscrupulous professionals who file false claims with insurance companies.
Insurance companies are our clients and we work diligently to uncover ring leaders, recover misappropriated funds and reduce the incidence of fraud. The good news – Florida recently has seen a decrease in PIP Fraud. Projected 2013-14 numbers show a potential 16% decrease since 2011-12, the highest period of PIP fraud referrals.
Despite the decrease, all South Floridians continue paying a price. According to a recent study, the Miami metro area is the third most expensive city for auto insurance rates, behind New York and Detroit. Miami area motorists pay an astounding 34% more than the national average.
Are you outraged? You should be. While the job of reducing fraud falls to state and federal agencies, along with legal teams who specialize in fraud, such as Goldstein Law Group, there are opportunities for the public to help.
Sometimes a car accident is not really an accident and consumers can be unwitting victims or innocent bystanders. According to FraudWeek.com, fraud is most likely to be detected by a tip. And a consumer tip can be the crucial link that unravels the whole fraudulent operation.
As we celebrate International Fraud Awareness Week, November 16-22, let’s come together to increase public awareness in the hope that we can reduce the incidence of fraud and start lowering the rates South Florida motorists must pay for auto insurance.
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