How Much Does Insurance Fraud Cost?


Insurance fraud costs this country around $80,000,000,000 dollars annually. there’s a kind of insurance fraud for each sort of insurance that exists: life assurance fraud, auto insurance fraud, insurance fraud, and so on. The stories of the schemes people try, and therefore the lengths some people will attend steal money evoke a gamut of emotions from despicable, to ridiculous, to down-right hilarious. Some fraud schemes are clearly premeditated, while others are apparent crimes of opportunity, and sometimes crimes that began with the straightforward motivation of a pay day evolve into horrific and murderous cover-ups.

A man collected $1,200,000 after an unfortunate “injury” left him mostly confined to a wheelchair. An investigation began when, a while later, a lover saw him at a store walking freely without his wheelchair. The acquaintance asked him about it, to which the person insisted that he was the injured man’s twin brother. the person was found by the investigators to possess no twin brother.

There was a story of a person who was trying to scale the roof of a shop with intent to burgle it, but fell and broke his back. His accomplice then drove him some 40 agonizing miles home, where they fabricated evidence of a faulty step and a spill down a flight of stairs. the person sued and ruined the landlords additionally to accepting the insurance payout, and raked in $850,000 for himself. He quickly blew through his ill-gotten fortune and have become destitute once more . Shortly thereafter, his accomplice came clean, and every one was made right with the landlords and insurance firm .

One famous case of life assurance fraud involved an ex-school teacher who faked his own death by “disappearing” on a canoeing trip. This pseudocide tricked the life assurance company into paying his wife almost $300,000! He stayed during a flat nearby to his own house, and moved abroad a touch before returning home to ascertain his sons, who, for five long years, thought that their father was really dead. His wife was in on the scheme, and that they each did 6 years in prison. This life assurance fraud story was so remarkable that it had been even made into a dramatized TV series.

There are countless stories of arson, auto theft, false insurance and even brutal murder all committed for the sake of filing an claim for a fast buck. By “quick buck,” I mean many thousands of quick bucks. there’s also a topic among those that are caught committing insurance fraud having spent all of the cash , and completing back where they started, but without their car, or loved one , and ultimately without their freedom. Insurance fraud affects us beat that it keeps all of our auto insurance, life assurance , and each other insurance premiums high, to not mention that crime never pays, a minimum of not within the end of the day .