Imagine you had a few extra thousand dollars each month to spend on anything you wanted.
You could buy a new car, take care of your mortgage for the year, or even build an extra room onto the house.
Insurance fraud is the act of purposely reporting false information in order to collect money from an insurance company.
Insurance scammers are everywhere – and they can be very convincing.
Learn how to spot a scam before it happens, and how to protect yourself and your family.
Insurance Scams – How to Prevent Fraud & Keep Your Family Safe
Imagine you had a few extra thousand dollars each month to spend on anything you wanted.
You could buy a new car, take care of your mortgage for the year, or even build an extra room onto the house.
Insurance fraud is the act of purposely reporting false information in order to collect money from an insurance company.
Insurance scammers are everywhere – and they can be very convincing.
Learn how to spot a scam before it happens, and how to protect yourself and your family.
What is Insurance Fraud?
Insurance fraud is an act of purposely reporting false information in order to collect money from an insurance company.
Insurance scammers are everywhere and they can be very convincing.
One common scam is staged accidents.
To stage an accident, an uninsured driver will hit your parked car and claim you were at fault for the collision.
The scammer’s car usually has out-of-state plates so if you report the incident to authorities, it’ll take longer for them to find out that the accident was staged.
How Insurance Fraud Happens
There are a number of ways for scammers to collect money from unsuspecting victims.
Auto insurance scams most commonly occur when an individual reports their vehicle stolen and then collects the insurance payout.
The scammer might also make a false claim that the vehicle was damaged in an accident, with the intent of receiving compensation for the damage.
If you’re not sure if someone is committing an insurance scam, look out for these telltale signs:
- – They have little to no knowledge about the type of coverage they are applying for
- – They are paying cash
- – They are hesitant to provide personal information
How to Prevent Insurance Fraud
Insurance fraud is a common practice in today’s society, with scammers lurking around every corner.
The most common type of insurance fraud is staged auto accidents, which may be more difficult to spot than you think.
Insurance scams target drivers on the road by purposefully causing accidents and then reporting them as if they had been in the car that was hit.
Preventing insurance fraud is up to you! Here are some helpful tips:
- – Spotting an accident scam should be easy, but it’s not always that simple.
- If the driver swerving out of control has a sign or logo on their car, it may not be an accident after all.
- – Ask for identification from the driver who caused the accident. You can also ask for their policy number (if they have one) and contact information in case you need to verify their story later on.
- – Ask yourself why this person would want to cause an accident? Is it possible that they’re trying to commit insurance fraud?
- – If you’re suspicious about any events that happened during your accident, call 911 and report the event immediately.
What to Watch Out For
Insurance scammers are becoming increasingly sophisticated, as they take more time to learn about your company and its policies.
That’s why it’s important that you’re not only aware of what to watch out for when you’re dealing with insurance scammers, but also the best way to keep your family safe.
Insurance scammers might offer a product or service that sounds like it could be beneficial for your business, but in reality, is just a ploy for them to collect money from you.
For example, an insurance scammer may call and say they want to offer your company a special deal on insurance.
They’ll charge you a higher premium than what you would normally pay but will give you some sort of “special” benefit in return.
This is called an “advance fee.
” You never get the special deal (which was never real) while the scammer gets paid in advance.
Another common scam is when people disguise themselves as employees of an insurance company, complete with fake business cards and badges.
They’ll ask for personal information such as Social Security numbers and birth dates as if they were conducting an audit or investigation into fraudulent claims.
In reality, they are fishing for any type of personal information that can be used to commit fraud – this includes bank account numbers, credit card numbers, online passwords, etc.
Once they have this information, it’s much easier for them to steal from your family by taking funds or obtaining credit cards with their name on it.
Conclusion
If you’re looking for a way to protect your family from fraud and keep them safe, you’ve come to the right place.
Safety Insurance has been protecting families for generations, and we’re here to help you do the same.
Don’t let frauds and scams make your family vulnerable.
Knowing the most common tricks and how to prevent them will allow you to protect your family and keep them safe.
