Not many people realize the severity of insurance fraud and how it adversely affects the rest of society and the government. Insurance fraud is a very serious crime that inflicts a heavy burden on everyone, not just the insurance company and individual committing the fraudulent crime. Insurance fraud goes beyond swindling money; it can lead to violent crimes such as property damage and even murder. It can even result in depression, bankruptcy and job termination.
Due to insurance swindlers, the fraud results in a higher premium to be paid by you and other policyholders. Insurance companies unfortunately must defer the costs of false claims onto its policyholders resulting in spiked insurance coverage that is often unattainable by the middle class. Two examples are false auto-insurance and workers’ compensation claims.
Some states, such as Florida and New Jersey have astronomical insurance premiums due to false injury from staged auto accidents. Another example of high insurance premiums results from fraudulent workers’ compensation claims. These particular claims are increasing at a rapid rate which include false claims of injury while on the job and are sometimes hard to prove otherwise.
Fraudulent insurance claims also deter resources distributed by the government. Federal and state governments take on a good portion of the expenses caused by insurance fraud. As a result, many of the anti-crime enforcers suffer due to limited expenses.
If you think fraud is being committed within your company, with the help of Specialty Private Investigators Incorporated, we can help catch those who try to take advantage of your business. Our private detective services can assist in providing information that will help during the investigation.