Fraud Moves to the Suburbs

Fraud Moves to the Suburbs

NU Online News Service, August 12, 2:50 p.m. EDT?Insurance fraud rings long-established in New York City are now targeting that city's suburbs for their scams, according to the Palos Hills, Ill.-based National Insurance Crime Bureau.

For example, in Long Island's Suffolk County, NICB launched an investigation into a series of suspicious auto accident claims, all of which involved drivers from New York City, Robert M. Bryant, NICB's president and CEO, said in a statement.

Using new computer technology and sophisticated databases to review the medical bills generated by the Suffolk County accident claimants, the NICB identified numerous New York City-based medical facilities, physicians, therapists, acupuncturists, transport companies and equipment suppliers.

"Each of the medical providers was under suspicion for fraudulent practices by NICB's New York medical fraud task force," said Mr. Bryant. NICB assembled a detailed chart which outlined the inter-locking relationships between medical providers, billing agents and others involved in the scams.

"The NICB alerted the Suffolk County task force with its findings, uncovering evidence of a scheme to defraud insurers by submitting fraudulent bills for treatment of bogus injuries," Mr. Bryant added. The individuals involved were subsequently charged with insurance fraud.

"Organized insurance crime is no longer simply a New York City phenomenon," Mr. Bryant pointed out. "Insurance criminals are seeking to loot New York's auto insurance system wherever they can. The result is higher insurance premiums for all."