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SHAME ON YOU
By Paul Gonzalez
Here in America, we’d like to think that most people are good hearted, and there is only a small collective that have bad intentions on their mind. Dishonest people will always find a way to scam innocent people or scam legitimate businesses. Fraud is a crime that is so prevalent, and one form that is out of control is auto insurance fraud.
What exactly is insurance fraud? Fraud occurs when someone knowingly lies to obtain some benefit or advantage to which they are not otherwise entitled or someone knowingly denies some benefit that is due and to which someone is entitled. Depending on the specific issues involved, an alleged wrongful act may be handled as an administrative action by the Department or the Fraud Division may handle it as a criminal matter.
Auto insurance fraud has evolved so much that it could very well be a business on its own. Hundreds of millions of dollars are lost every year to fraudulent claims as well as man hours to investigate the legitimacy of such claims. It has to be very frustrating to insurance companies to know that these thieves are out there, preying on their policy holders and their own companies as well.
There are so many techniques used to commit auto insurance fraud. One of the most popular is the “Swoop and Squat”. This is a technique used where a driver (A) will get in front of an unsuspecting driver (B), while another shady driver (C) will get beside the same unsuspecting driver (B). Driver (C) will get right beside driver (B), and driver (A) will slam on his brakes. With nowhere to veer, driver (B) will rear-end driver (A), thus completing the fraudulent act. Driver (A) can now take advantage of the $10,000 of Personal Injury Protection or PIP to pay for X-rays, MRI’s and any other physical therapy.
Another scheme that often takes the stage is when a passenger van will purposely get into an accident in a suburban type of neighborhood. Strategically placed, are five or six accomplices, so that when the van stops after the accident, the accomplices are instantly on the accident sight as if they were passengers in the van, so that when the police come, there isn’t just one accident victim, but six or seven. That is now six or seven potential patients to take advantage of the PIP.
Often times, the insurance fraud has many players in the ring of deception including lawyers, doctors and personal injury clinic owners. Each one takes their piece of the booty when the fraud is complete, and they typically will pay the accomplices a measly $100 - $200. The accomplices are so desperate for money to feed their family or support a drug habit that they are a dime a dozen and readily available.
Until legislature can crack down on the regulations of the Personal Injury Protection, it’s unfortunate but auto insurance fraud will continue to evolve and thrive. If you are ever in an auto accident, first make sure that there are no life threatening injuries, then call the police and finally… take pictures. Almost every cell phone now comes with a camera, so take as many pictures as possible. Another helpful thing to do is document the time with as much as possible.
Like most crimes, the best way to deter them or to prevent yourself from becoming a victim is to try to prepare as much as possible, and have a plan of action in the event that something does happen. For those shady thieves committing auto insurance fraud… I say shame on you!
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