1. Are you mindful what an insurance policy scam is?

An insurance con is produced when benefits are received from an insurance company after submitting fictitious information. A great example is when a person falsifies an accident or loss of items to collect funds illegally form an insurance company. If for example an accident has genuinely taken place, deceiver can exaggerate or twist some of the facts in order to escalate the chances of winning the claim.

2. Do we truly need to worry about fraud?

Yes we could be worried. We will all pay high premiums if insurance business enterprises lose money to misleading actions.Premiums are more costly if the risk of losing funds through fraudulent activities is high.

When premiums are pricey, business organizations end up paying increased commercial and health insurance prices. Consumer commodities and services are sold at increased prices because the higher insurance costs are extended on to the consumer. What this means is that business enterprises are primarily losing hundreds of thousands of dollars annually to fraud and we are all in some manner indirectly losing funds too.

We know that some of the investments in financial organizations like banks comes from insurance companies.So when the insurance organizations lose money there will be less money for investments, and this then lends to a general decline of economic activity to some extend.

When fraudsters stage false accidents or sell unreal health insurance policies, they will endanger people’s lives and health. Staging a fake accident may result in people getting injuries or worse being killed. Similarly, intentional burning may end up in the death of a person or animals.Assassinating people or killing pets for life insurance cash is another way fraudulent activities can occur.

3. So if we are all affected why is it problematic to thwart this insurance scourge?

There also various causes for this. If insurance fraudulent activities happens only once it is difficult to find out, and therefore is usually regarded as low risk crime. Usually the only way dishonest actions could be found is when the fraudulent activities is repeated or there is a form in the criminal behavior.

Compared to crimes related to alcoholic abuse and drug-related substances, it is interesting to acknowledge that a small precedence is given to fraud by law enforcement agencies. The complexity of insurance fraudulent activities crimes means that they are problematic to prosecute and therefore are given a lesser precedence. It is a known fact that fraudsters can gain from puzzling situations since they can exploit failings within the systems.

In some cases insurance firms can find it cost effective to pay off small dishonest claims instead of challenging it out in the courts of law. When large sums are included they tend to get serious and stand rigid.

Now, the initial thing to stop fraudulent activities is to ensure that the public is mindful of it. The second point is the ability to determine fraudulent activity. Lastly, people could be persuaded to report fraud to the relevant government agencies.