Sunday, November 12

How to Recognize and Prevent an Insurance Fraud

Insurance Fraud

Insurance fraud, contrary to common assumptions, is not a victimless crime. It’s one of the most expensive white-collar crimes worldwide. Having said that, it’s highly important to be adequately insured. You may avoid becoming a victim of insurance fraud by following the advice provided below.

Insurance fraud is versatile

Insurance fraud is a crime that looks different from case to case. For example, a car mechanic and their customer may have a deal to report the cost of damage and share the “profits”. On the other hand, you yourself may be a victim of insurance fraud if your doctor bills your private health insurance company for a procedure that they didn’t provide. Thankfully, there are many things you can do as a consumer to prevent falling victim to insurance fraud. You can also read.

Know your agent

In certain cases, customers are taken advantage of by dishonest insurance agents or brokers, and it is only after filing a claim that they realize they actually have no coverage. If it turns out you have no coverage and your house gets extremely damaged in an accident, you‘ll be solely responsible for covering the costs. Be sure you only do business with brokers and agents who have valid licenses. They must have a copy of their license on file at all times. To be completely sure you’re not buying the so-called junk insurance, ask them to show you their license and go through the contract with you before you sign it. Junk insurance got its name because of the fact it’s not really needed, similarly to junk emails. Check out Claimo’s services to get your money reimbursed if you think you’ve fallen victim to useless insurance policies.

Carefully go through the application

Do not rush through the application process. Blank paperwork and applications should never be signed. It is possible to lose your insurance coverage if you provide misleading information on your application. In this case, you could be the one charged with insurance fraud, even though you provided wrong information accidentally, so always be careful. Doble-check all the forms before finalizing the application. If an agent persuades you to say anything or submit something that is not true, do not do so. Never sign something on a whim, especially not insurance applications and contracts!

Be careful what you pay for

One of the most common insurance frauds is medical insurance fraud in which medical service providers will bill you and your insurance company for the service they haven’t provided. Needless to say, the services you’ve received should be the only thing you pay for. When you get your bill in the mail, make sure to ask for a full list of the services provided and their prices. Make sure to talk to your doctor and understand the names of the procedures and what they mean, just to make sure that everything listed out is a legitimate service you had performed on you. Furthermore, you will get an “Explanation of Benefits” statement if you have had medical or dental treatment that is covered by a health care provider. In order to avoid being charged for services not received or days not treated, properly check your statement. Ensure that you weren’t overcharged for services you didn’t get, a practice known as “upcoding.” Immediately contact your insurance company if you see any inconsistencies. An investigator will get in touch with you to get further information.

Phishing scams

Though the Internet is one of the most helpful inventions of the new era, it’s also one of the ways scammers can get to you. The most common way you may be lured into an insurance scam is through so-called “phishing e-mails”. Fraudsters may introduce themselves as a legitimate company offering you insurance coverage or even some other service you may think you need in order to get your passwords, credit card information, and more. This is why you should never sign up for a service if you hear of it by e-mail first. Some phishing scams may also get your cell phone information and try to reach you via call. For example, many people were scammed during the height of the recent pandemic and were offered fake treatments and health insurance. Be careful when you open those e-mails and never click on the attached links if you find the e-mail to look fishy.

To conclude, fraudulent claims must be dealt with harshly by insurance companies in order to prevent further assaults and schemes. Furthermore, you as a consumer should be well informed before you sign any contracts or apply for insurance. Once you know all the forms insurance fraud can take, you will be a happier consumer and the fraudsters will be discouraged because of the consumers’ capacity to detect and thwart even the most intricate fraud schemes.

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