Following a disaster, such as a wildfire, flood, or hurricane, most insurance providers see an increase in fraud-related losses. The global epidemic, COVID-19, has made the adjustment process considerably more difficult this year, compounding fraud-related behavior.
Insurance firms are dealing with a number of fraudulent claims as a result of the dire financial situation of many businesses and homeowners, as well as the scams perpetrated by certain policyholders to profit from the pandemic. Adjusters have had to take a deeper look at insurance claims and investigations to ensure the truth is disclosed, from fake automobile accidents to email phishing schemes to bankrupt small business owners destroying their own property.
This is especially true when it comes to what appears to be a little financial loss but is actually part of a larger, more structured loss. Given our current economic situation, legal and expert experts must be on the watch for all claims as a result of the increase in fraudulent activities. Although hearing about these plans can be depressing, they definitely exist.
Jump-ins are those who make injury claims despite not being in the car at the time of the collision. This offense is undertaken in the expectation of receiving compensation from the liability car insurance of another driver.
2. Phishing, spoofing, and spamming
Unsolicited emails that ask for or steal personal information fall into this category. It’s vital to keep an eye out for emails from firms claiming to have COVID-19 testing kits, masks, ventilators, insurance, or remedies, as these are typical topics in phishing emails. Keep an eye out for intercompany email phishing scams that attempt to steal login passwords and other sensitive information. Cybersecurity concerns are on the rise, thanks to the status of our at-home workforce.
A give-up scam occurs when someone stages a phony theft or burning of their late-model automobile. These situations tend to increase as drivers fall behind on their payments. This is frequent with gas-guzzling SUVs or a second family vehicle that has suddenly become unnecessary.
This was evident when military members returned home after a long deployment. The soldier was given a high-end pricey car with the expectation that he would have around three years before his next deployment. He was suddenly assigned to deploy on short notice, and he had to pay off a substantial monthly payment, and the vehicle was discovered torched in a remote spot.
4. Auto Schemes That Are Well-Ordered
During a pandemic, organized accident rings may launch waves of bogus whiplash claims, putting insurer anti-fraud technologies to the test.
5. Arson in Small Businesses and Private Residences
If their mortgages become unpayable, business owners or homeowners may set fire to their homes. Policy changes that come out of nowhere. Increases in policy limits by owners who do not have the income to pay the coverage could be a warning sign. Businesses or residences may burn down within days or weeks after new policy restrictions take effect or soon before a foreclosure is due, which is a telltale sign of possible arson, according to insurance firms.
COVID-19 in Relation to Fraudulent Activity Hurricane Katrina’s Aftermath
Property owners are faced with an unfathomable number of difficulties to overcome in order to return to a normal state following a tragic disaster. Following a disaster, property insurance is a crucial component of the process of rebuilding and stabilizing damaged lives. When coverage is determined to be appropriate, the adjustment process can be quick and painless.
In circumstances where there is a lack of coverage, such as a hurricane that causes huge floods or under-insured scenarios, unscrupulous owners may seek payment from the insurer in other, potentially fraudulent, ways.
Following a disaster, public perceptions of big money insurers being unjust to consumers might stymie insurers’ efforts to combat fraud. After Hurricane Katrina, fraud became so widespread that the National Center for Disaster Fraud (NCDF) was established to address natural and man-made disaster-related fraud.
Why Should You Pick IGS?
All claims specialists, investigators, and insurance experts must be vigilant and thoroughly evaluate each claim in this trying era of COVID-19 and the apparently endless catastrophe events. As insurance fraud becomes more complex and sophisticated every day, insurers have begun to broaden their anti-fraud technologies in the underwriting process. IGS can be helpful to you in this regard, Because insurance companies are prohibited from sharing information with one another, and IGS knows its duties to secure privacy and all the day to day demands. It is critical to thoroughly investigate all losses, no matter how minor, because what appears to be an unrelated, financially minor loss could be linked to something much larger, spanning far beyond a single insurance company.