Fraud investigators are on high alert these days for increases in scams driven by the economy and what one industry analyst describes as a growing desperation among policyholders who are just hanging on by their teeth financially.
Some believe insurance fraud tends to spike during a troubled economy as people become anxious to escape their financial plight and resort to insurance crimes to make ends meet, explains James Quiggle, director of communications for the Coalition Against Insurance Fraud. "People are torching their vehicles in growing numbers around the U.S.," he says. "To a lesser extent, they also are torching their homes to try to escape foreclosure. Investigators in workers' compensation are watching for the warning signs of a spike in premium scams and bogus injury claims."
The healthcare industry is no less vigilant whether the stock market is up or down, according to Kyle Cheek, director of enterprise informatics for Health Care Service Corporation (HCSC). "Anecdotally, I think the evidence may lean to suggesting people are more freewheeling when times are good," he says. "People might be more cautious about being watched when times are tough."
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