How Fraud is Costing Each and Every One of US.

1. What is an insurance policy scam?

When an individual gets benefits which they are not entitled to after deliberately leading on an insurance company then he or she has just created a scam. When someone lies about loss of some property or misrepresents an accident it is a a typical example of a scam. To raise the opportunities of benefiting from an insurance claim, some people can decide not tell the truth on some of the facts presented.

2. Do we truly need to be troubled by scams?

There are numerous cases why you must be worried.We will all pay expensive premiums if insurance business organisations lose funds to misleading actions.The higher the risk of fraudulent activities the more the cash we will pay in our premiums.

If premiums are high-priced, business organisations end up paying increased commercial and health insurance prices.These high costs are then handed on to the customer as high prices for commodities and services. Now, we are all indirectly losing cash to fraud because businesses are straightaway losing thousands of dollars.

Now, another issue is that insurance organisations invest their cash in financial organisations such as the banks.So when the insurance businesses lose funds there will be less funds for investments, and this then lends to a general fall of economic activity to some extend.

When fraudsters arrange fraudulent accidents or sell fraudulent health insurances, they will endanger individuals’ lives and health. Producing a unreal accident may result in people sustaining injuries or worse being killed. Another example is people or pets can be killed if an individuals misrepresents an accidental fire.Assassinating people or killing animals for life insurance cash is another way fraudulent activities could take place.

3. Why are we failing to prevent these activities of fraud?

We can consider several reasons. Insurance fraud activities are interpreted as low risk criminal acts because sometimes it is very difficult to find if it is done only once by the defrauder. Usually the only way dishonest actions may be noticed is when the fraudulent activities is repeated or there is a form in the criminal behaviour.

Interestingly enough fraud is given a lesser importance by the law enforcement agents when compared to crimes related to drug-related substances and terrorism. The complexity of insurance fraud crimes implies that they are difficult to prosecute and therefore are given a lesser precedence.For example, the intricate billing systems, found in some countries, are insecure to con artists who can easily siphon funds through deceitful claims.

Rather than challenging small deceptive claims in courts, insurance firms in some instances prefer to pay off the fraudsters. Insurance business enterprises tend to get tough when large sums are included.

Making everyone aware of fraud is the first vital step. The second point is the ability to find misleading activity. Lastly, people must be encouraged to report fraud to the appropriate law-enforcement agencies.

Leave a Reply

Your email address will not be published. Required fields are marked *