Essay about Fraud Is The Act Of Committed Any Fraud

1010 Words Nov 23rd, 2015 5 Pages
Insurance fraud is the act of committed any fraud with the intent to obtain a fraudulent, obtained by or involving deception, especially criminal deception, with the outcome of an insurance process. Insurance fraud occurs most often when a person makes a false of exaggerated. Customers can also commit insurance fraud through the sale of unlicensed insurance coverage to clients who are unaware or an insurance broker or agent can take premiums paid by a client.
Typically, police and prosecutors refer to insurance fraud as “hard fraud” or “soft fraud”. More serious than soft fraud, hard fraud involves someone faking an accident, injury, theft, arson, etc., then they collect the money illegally from insurance companies. Often done alone, but organized crime rings staging larger schemes to get millions of dollars is increasing. Soft fraud, also known as opportunistic fraud, is when normal honest people tell “little white lies” to insurance companies to maximize or the purpose of filing a claim. Although many people think that soft fraud is harmless, it is a crime and raises everyone’s cost of insurance.
$80 billion is estimated to be made in fraud claims annually in the United States, also fraud and claim buildup in auto insurance added up to between $4.8 billion and $6.8 billion. Of claim cost in the U.S. and Canadian 5% – 10% are fraud accounts. In New York, as many as 1 out of 3 auto insurance claims fraud is a factor. According to the National Insurance Crime Bureau…

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