According to FBI statistics, the insurance industry (non health insurance) in the United States accounts for a trillion dollar industry. The FBI estimates that in the US alone the 7,000+ insurance companies that operate are scammed out of an estimated $40 billion dollars each year. That roughly equates to somewhere between a $400-$700 burden that each family in the country pays out yearly to offset the fraud. Here is a list of the most common types of insurance fraud as compiled by the FBI.
- Premium Diversion
- Fee Churning
- Asset Diversion
- Workers’ Compensation Fraud
- Disaster Based Fraud
Insurance fraud is fairly simple to commit and can generally go undetected because of the large volume of providers and claims. Disability claims alone can cost businesses an estimated $20 billion dollars a year according to a recent article published by Yahoo. In the article they note how there has been a steady increase in the amount of disability claims that are harder to prove or negate, like chronic back pains and mental disorders. The cost of insurance fraud for small businesses can in some cases make or brake a company’s fiscal budget. What would you do if thought someone was perpetrating a fraud against your company? How would you prove your intuitions? Did my employee who is on disability for an injured shoulder, just make a social media post about being tired from building a privacy fence this weekend? How injured could they really be?
We all know that suspicions aren’t enough of a reason to seek legal action against somebody, there has to be concrete proof in the form of facts, especially if you hope to seek restitution for the fraud committed against you. Recently in Kansas City, popular insurance company Blue Cross Blue Shield has faced fraudulent claims valued at over $180,000. The claims were filled on behalf of people trying to take advantage of incentives the company was providing to in courage physical fitness, while ultimately increasing the health and wellness of those the company insures. The incentives were designed to help drive down the cost of premiums since people who are healthy are less likely to need medical care. According to federal records, 383 people have been documented to have perpetrated the fraud involving incentives for working out but only 5 have faced questioning.
This is a great example of case where the skills and experience of a Kansas City Private Investigator could be employed. We spoke with Doug Pearson, a licensed Kansas City private investigator who has uncovered many types of insurance fraud in his 20 years of operating Act Now Investigations. Doug told us that in many cases the resources of the local, state and federal law agencies have been worn thin and investigating fraud is not usually high on their list of priorities. A private investigator however when working on a case, devotes all of their time to getting to the bottom things. Whether it’s sifting through mountains of legal documents, interviewing friends, relatives or coworkers of the potential fraudulent claimer or running surveillance on the suspect, Doug has many means to sorting out facts from fictions. Act Now Investigations prides itself on professionalism and discretion when handling issues that require privacy.
For the small cost of hiring Doug Pearson, you might be able to help your company mitigate any damage that could be caused financially but also to the reputation of your company. For more information or to speak with Doug to find out if you should proceed with an investigation, fee free to call the licensed private investigator at (913) 469-0006 or visit Act Now Investigation’s website for more info. www.actnowinvestigations.com
To see some hilarious attempts collecting auto insurance money check out these crazy Russian dash cam videos.
For more info on how to protect your business stay posted to your Kansas City blog.