Table of Contents

 

SECTION 1: AN INTRODUCTION TO INSURANCE FRAUD

1

WHAT IS THE IMPACT OF INSURANCE FRAUD?

3

TOP THREE INDUSTRIES AFFECTED BY INSURANCE FRAUD

5

HEALTHCARE

5

WORKER'S COMPENSATION

6

AUTO INSURANCE

7

SECTION 1— KEY TAKEAWAYS:

8

SECTION 2: TWO MAIN TYPES OF INSURANCE FRAUD

9

HARD FRAUD: DELIBERATE AND DAMAGING

9

SOFT FRAUD: AN OPPORTUNITY TO GET MORE

10

WHO CAN COMMIT INSURANCE FRAUD?

11

SECTION 2— KEY TAKEAWAYS:

13

SECTION 3: REAL-LIFE EXAMPLES OF INSURANCE FRAUD

14

FRAUD PROFILE 1: ANDY HOUSE

15

REVIEW

16

FRAUD PROFILE 2: WANDALE J. FULTON

17

REVIEW

20

FRAUD PROFILE 3: JACQUES ROY

21

REVIEW

25

FRAUD PROFILE 4: SCOTT CHARMOLI

26

REVIEW

29

FRAUD PROFILE 5: JOHN AND ANNE DARWIN

30

REVIEW

33

FRAUD PROFILE 6: LARRY RUDOLPH

34

REVIEW

37

FRAUD PROFILE 7: ALI F. ELMEZAYEN

39

REVIEW

41

SECTION 3— KEY TAKEAWAYS:

42

SECTION 4: A CLOSER LOOK AT INSURANCE FRAUD

43

WHY DO PEOPLE COMMIT INSURANCE FRAUD?

43

THE FRAUD TRIANGLE

44

COMMON TYPES OF INSURANCE FRAUD

48

HEALTHCARE: COMMON INSURANCE FRAUD SCHEMES

48

Billing for Services That Were Not Provided

48

Upcoding

49

Unbundling

50

WORKERS' COMPENSATION: COMMON INSURANCE FRAUD SCHEMES

52

Premium Fraud

53

    Experience Modification

54

Claims Fraud

55

AUTO INSURANCE: COMMON INSURANCE FRAUD SCHEMES

57

Vehicle Dumping, False Registration, Exaggerated Repair Costs After an Accident, Faulty Airbag Replacement, Staged Accidents

58

Swoop & Squat

58

Drive Down

59

Go and Stop

59

SECTION 4— KEY TAKEAWAYS:

60

SECTION 5: FRAUD DETECTION— HOW TO FIGHT AGAINST INSURANCE FRAUD

61

DETECTING AND MANAGING RED FLAGS

62

COOPERATION WITH GOVERNMENT AND LAW ENFORCEMENT AGENCIES

63

USE OF TECHNOLOGY TO FIGHT FRAUD

64

THE STATE OF FAUD TECHNOLOGY STUDY: ANTI-FRAUD TECHNOLOGIES

67

AML & KYC

69

Figure 6.2 Types of Anti-Fraud Techniques

70

SECTION 5— KEY TAKEAWAYS:

72

SECTION 6: PRACTICAL HELP— WAYS TO PROTECT YOURSELF FROM FRAUD

73

4 SIGNS THAT YOU'RE GETTING SCAMMED

73

PRACTICAL STEPS TO PROTECT YOURSELF FROM FRAUD

74

SAFEGUARD YOUR PERSONAL INFORMATION

74

UTILIZE TECHNOLOGY TO YOUR ADVANTAGE

76

USE COMMON SENSE

76

SECTION 6— KEY TAKEAWAYS:

78

SECTION 7: INSURANCE FRAUD: WHO'S REALLY PAYING? LESSON REVIEW

79

SECTION 1: AN INTRODUCTION TO INSURANCE FRAUD

79

SECTION 2: TWO MAIN TYPES OF INSURANCE FRAUD

81

SECTION 3: REAL-LIFE EXAMPLES OF INSURANCE FRAUD

82

SECTION 4: A CLOSER LOOK AT INSURANCE FRAUD

83

SECTION 5: FRAUD DETECTION— HOW TO FIGHT AGAINST INSURANCE FRAUD

84

SECTION 6: PRACTICAL HELP— WAYS TO PROTECT YOURSELF FROM FRAUD

85

ENDNOTES

86