This week is International Fraud Awareness Week. Sponsored by the Association of Certified Fraud Examiners (ACFE), the goal of Fraud Week is to promote anti-fraud awareness and educate the public about frauds impacting our community and how to detect them.
In a recent article published in the ACFE newsletter, GLG partner Brian Tenzer and senior attorney Zasha Rodriguez shared the top eight frauds they believe will be most prevalent in 2016. Here are the main frauds we expect to combat at GLG in the New Year.
Straw Ownership
Why it’s Problematic: Many times, “straw” clinics are a front for money laundering or other criminal activities. Since medical clinics typically handle large sums of insurance money, these schemes can be very profitable. This type of sham doesn’t only impact insurance companies though. Unfortunately, these fraudulent clinics can also affect legitimate patients who may not receive proper medical attention.
Disaster Mitigation
Why it’s problematic: Lack of oversight makes it easy for corrupt companies to take advantage of people when a catastrophic event strikes. Some companies use unnecessary equipment, run equipment longer than needed or claim damage is more widespread than it is. Others may inflate estimates. When inflated claims are paid, consumers ultimately pay the price through increased premiums.
Policy Procurement
Why it’s Problematic: Policy procurement fraud has become more prevalent as consumers purchase insurance policies on the Internet. Applications are typically fabricated to get the policy prices and coverage promised. Not only is this scheme highly illegal, but someone who falls victim could end up with no coverage at all.
Staged Auto Accidents and False Auto Theft Claims
Why it’s Problematic: These types of crimes directly impact policyholder rates and could cost insurers billions of dollars each year through increased premiums. In a recent interview with the South Florida Business Journal, GLG’s founding partner, Frank Goldstein revealed the latest trend in staged auto accidents: parents involved in the scam are putting their kids in the cars to collect an extra $10,000 in benefits.
Arson Insurance Fraud
Why it’s Problematic: This type of fraud involves intentionally setting fires to property in order to collect insurance money. However, because fires tend to be unpredictable, neighboring homes or businesses may also be damaged if the fire spreads out of control.
If you believe a fraudulent crime is being committed or think you may be a victim of fraud, report it to the proper authorities immediately.
For more information about International Fraud Awareness Week, visit www.FraudWeek.com.
Leave a Reply