Understanding and navigating the world of insurance fraud can be complicated. In almost every instance where insurance claims are a central focus, some kind of fraud is present. Although the economy is on the upswing, measuring those gains against the advantages fraudsters anticipate is difficult. The good news is that there are organizations in place that work to combat insurance fraud.
Working with a licensed fraud consulting service or Special Investigative Unit (SIU) that helps to spot the characteristics of fraudsters can save your organization a lot of money. There are some common traits of insurance fraudsters to be on the lookout for. We’ve put together the top 5 strategies that fraudsters use in insurance fraud:
They Closely Follow Global Trends.
Fraudsters follow the trends, wherever they may be. From cars to credit cards, whatever is hot in the pipeline, you can expect to see fraudulent activity.
They Play on Vulnerabilities.
Fraudsters often wait until tragedy strikes to come in and play the victim or pretend they can save the day. This may entail staging accidents or pretending to be an adjuster or contractor after a natural disaster.
They Make the Paperwork Look Real.
Fraudsters are very slick and conniving, and can conjure up the documents needed to support their claim. With technology being so sophisticated, documents based on false witness statements or medical records with logos can be created quickly.
They Manipulate the Loopholes.
Fraudsters know how to manipulate systems, especially those in the healthcare industry. Medical claims and billing are some of the highest fraud areas and have resulted in millions of dollars being lost each year.
Experienced Fraudsters Go Big.
Although there are many instances of insurance fraud on small scales, the experienced fraudsters plan out for large-scale scores. From cars to pharmaceuticals, the fraudsters who exploit on a regular basis are always looking for the next big take.
Turn to the Fraud Experts
Knowing what to look for when attempting to combat insurance fraud can be beneficial to your organization and other stakeholders who have a lot to lose. Utilizing the expertise of the Brumell Group helps your company limit the amount of fraud you are subject to. As a full service fraud consulting, SIU compliance and investigations agency, we understand the mindset of fraudsters and provide insight into their activities and possible next steps.
For more information on how we can help expose fraudsters who are attempting to defraud your organization, call the team at the Brumell Group today.