Insurance Fraud Hall of Shame

The Coalition Against Insurance Fraud recently released its annual Insurance Fraud Hall of Shame, highlighting America’s most brazen, klutzy or vicious convicted schemers of the year. A murderous agent, a child-poisoning shakedown artist and a bungling home burner are among the seven swindlers elected to the No-Class of 2009. All were convicted or had other legal closure during the past year. According to the Coalition, insurance fraud is an $80 billion-a-year crime, yet its research shows that consumer tolerance for insurance fraud has risen in recent years. Many view fraud as a harmless prank, but these culprits put a human face on insurance fraud. As the Coalition says: “They remind us that fraud is far more than a victimless prank. People suffer, and sometimes die. Families are broken. Children feel pain and cry. Trusting seniors lose their life savings. Everyone’s insurance premiums rise.† Check out I.I.I. information on insurance fraud.

3 thoughts on “Insurance Fraud Hall of Shame”

  1. The majority of the investigations we conduct are inurance related. $80 billion would seem to me to be an understatement of actual costs of these frauds. The combination of Medicaid and Medicare frauds and Workers Compensation fraud are bankrupting entire states and delaying care for the people who can really benefit from these programs. The people who tolerate these frauds are really unaware of the costs to themselves and their loved ones.

  2. Insurance fraud really affects the industry in a very negative way. What the consumer needs to realise is that it is the honest insurance customers that are subsidising those who commit fraud in the form of increased premiums. Luckily where I live (South Africa) the South African Insurance Association has taken measures against fraudsters. They have a hotline where people can report people who commit insurance fraud.When a tip off is received the industry as a whole is notified, not just the particular insurer.

  3. I concur with the underestimation comment by Nicholas Fici. As an audit premium collection firm, with 30 years in the trenches, I think that “Employer Premium Fraud” alone would calculate to over $80 billion in premium losses. My colleagues on LinkedIn agree, that not enough efforts are allocated to pursue dubious employers.

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