DEFINITION of Insurance Fraud (Insurance fraud Recovery process)
Insurance fraud is an illegal act on the part of either the buyer or seller of an insurance contract. Insurance fraud from the issuer (seller) includes selling policies from non-existent companies, failing to submit premiums and churning policies to create more commissions. Buyer fraud can include exaggerated claims, falsified medical history, post-dated policies, viatical fraud, faked death or kidnapping, and murder.
BREAKING DOWN Insurance Fraud
Insurance fraud is an attempt to exploit an insurance contract. Insurance is meant to protect against risks, not to serve as a vehicle to enrich the insurers. Although insurance fraud by the policy issuer does occur, the majority of cases have to do with the policyholder attempting to receive more money by exaggerating a claim. More sensational instances, such as faking one’s death or committing murder for the insurance money, are comparatively rare.
Types of Insurance Fraud Schemes
Attempts to illegally reap funds from insurance policies can take on a variety of forms and methods. Insurance fraud with automobiles, for instance, may include disposing of a vehicle and then claiming it was stolen in order to receive a settlement payment or a replacement vehicle. The original vehicle could be secretly sold to a third party, abandoned in a remote location, intentionally destroyed by fire, or pushed into a river or lake in order to dispose of it. In particular, if the owner sells the vehicle, they would seek to profit by pocketing the cash, and then claim the vehicle was stolen in order to receive further compensation. Insurance fraud Recovery process
The owner of a vehicle might attempt to cut the costs of insurance premiums by using a false registration. If the vehicle owner lives in an area designated with a high rate on premiums, because of recurring car theft in the neighborhood or other reasons, they might try to register the vehicle in a different area in order to lower their premiums.
Repair work on a vehicle could also become a source of insurance fraud. For example, a repair shop that is expecting payment from the insurer might charge for extensive work, but then use cheap or even fake replacements. They might also overcharge the insurer by overstating the extent of the repairs that are needed.
One of the downsides of insurance fraud is that the heightened cost of dealing with such problems is passed along by insurers to their customers. According to the Federal Bureau of Investigation, more than $40 billion annually is lost to non-health insurance fraud.
Cybersphere Security provides digital security and forensics for insurance fraud cases where digital information can be key. We can assist with scraping the web of data and sensitive information, or protecting social media accounts and scraping others for information or corroborating evidence. Also, we can provide reconnaissance and digital download of other accounts, websites and data centers. Both business insurance, real estate fraud, home insurance, arson and other complicating legal issues are within our expertise.
One of the most important facets of any insurance fraud battle in court can be corroborating data and important evidence that can be used to aid in a legal defense or protect against unlawful or illegal or incorrect testimony and legal maneuvers. Cybersphere Security can help protect and recover sensitive data, and can also search for important related information to any legal case. Jury trials and bench trials can both be helped drastically with digital reconnaissance and cyber security of business and accounting that can help protect or discover valuable information to any case.
Cybersphere Security in Raleigh, Durham, Cary, and the Chapel Hill area works with Apple software such as OS, iOS, iPads and iPhones, Android-Google software such as Chrome OS and Android, Microsoft personal computers and Windows Phones, and other manufacturers like LG, Samsung, Motorola and others, as well as software like Linux, Windows, Mac OS, Java, WordPress, Microsoft Office, Microsoft Word, Powerpoint, Excel and more. We also work with custom business accounting and other custom hardware software and more.