Insurance Companies and Insurance Fraud

The basic concept of insurance fraud is when a person uses intentional deceptive strategy in order to receive benefits they are not entitled. Clever schemes that have been used to scam insurance companies would eat up more than one 8X10 computer page and include: home burglary about stolen items, medical services that were not provided, collecting workers' compensation while still employed or working at another job. Yes folks, insurance fraud is "big business" to the tune of about $100 billion (that's a B) on an annual basis - Ouch!

Insurance Fraud: Don't Be Fooled

Insurance fraud in its most basic form is the act of knowingly lying for financial benefit. This means lying to gain monetarily when the money was not entitled to you. The insurance fraud can be a result of several different types of claims made to the insurance company, but they are all an attempt to try and gain financially by lying to the insurance company. In addition to repayment of the money and interest, there are also severe penalties put on the person trying to commit this crime.