With Memorial Day coming up, we can be reminded that insurance fraud schemes impact everyone, including Veterans.
Military veterans and retirees reported $66 million in fraud losses in 2020, according to Federal Trade Commission (FTC) data. Fraud is the second-most costly white-collar crime in America. These crimes add up to billions of dollars in fraudulent insurance claims every year. Even if you haven’t suffered a direct loss, you are still a victim of insurance fraud. Not only does fraud cause higher insurance premiums, but it also raises taxes and inflates prices for consumer goods.
The National Insurance Crime Bureau (NICB) urges Veterans to safeguard themselves against fraud. To prevent becoming a victim, know the signs of the following schemes.
STAGED AUTO ACCIDENTS
Sometimes auto accidents aren’t really accidents at all. They are staged, deliberate crashes designed to make it look like it’s your fault, when you’re actually the victim.
While insurers pay out roughly a billion dollars a year to cover losses, sometimes those payments end up in the pockets of unscrupulous contractors.
The NICB is warning and educating consumers about unethical and illegal practices among some rogue towing and storage operators and repair shops around the nation.
AUTO GLASS FRAUD
There have been questionable practices by the vehicle glass repair and replacement industry where they advertise that a windshield replacement is “free.” Unfortunately, what they are asking you to be part of may be insurance fraud. These too-good-to-be-true offers drive up your auto insurance rates and raise the overall costs of auto glass repair services.
WORKERS COMPENSATION SLIP & FALLS
Here’s how a typical slip and fall scenario plays out: a small shopkeeper is alone at work when a customer arrives and roams the aisles looking at merchandise. Moments later, the customer starts calling out for help. The shopkeeper responds to find the person on the floor, moaning and groaning from an injury they claim was caused when they slipped on something on the floor.
Here are more resources for Veterans to learn about and combat fraud:
Content courtesy of the National Insurance Crime Bureau.
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