Insurance fraud impacts everyone. As fraudulent activities become more frequent and complex, the cost of insurance swells. Fraud occurs in various ways, with the main offenses being fraudulent claims, application fraud and premium fraud, according to Mercury Insurance. The most common fraud involves offenders filing false or exaggerated claims. "There are several common schemes of which consumers should be aware," Steve Wang, manager, divisional claims and head of special investigations unit at Mercury Insurance, said in a press release. "Staged auto accidents, adding damage to vehicles after a loss and switching drivers on accident reports are a few of the most prevalent scams. Additionally, there are crime rings that specialize in 'slip and fall' schemes, which involve fake injuries and false claims." He noted these more advance techniques include producing fake medical records, duplicate checks and fake identifications and business licenses. "Making our job even more difficult is the fact that today's scammers are technologically savvy and have access to sophisticated equipment," Wang added. The above slideshow reviews the steps consumers can take to prevent becoming a victim of insurance fraud, according to Mercury Insurance. Related:
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