Fraud and Motives of Insurance Fraud

Topics: Insurance fraud, Insurance, Fraud Pages: 4 (1154 words) Published: May 3, 2012
Motives for the cheats
The motives for fraud are clear, it’s a financial crime. People can not pay the bills. They figure stealing from an insurance company which is big and greedy is no great moral wrong and no one will miss the money. However, even if the company is big and greedy it is still wrong. How people get caught by an insurance company

Fraud units at insurance companies are experts. But the reason people get caught are for obvious reason. People make stupid mistakes. However, as a word of warning, I worked in the insurance industry for years, they have very good trick for finding fraud. They are very clever. So please do not consider it. If you want something to think about think about the Auto insurance fraud penalties.

A finding of arson is not necessarily an indicator of insurance fraud as a motive. There are plenty of reasons why a third party may set fire to a business or private residence. Those reasons may include revenge, jealousy/competition, concealing another crime within, or even mental illness or anarchist behavior of the arsonist. Like all crime, motive is an important consideration and oftentimes the evidence at the crime scene will shed light on motive. It’s usually pretty easy to distinguish an accidental fire from an arson. So once the fire is determined to be arson then investigators begin to look for evidence of motive. Obviously, in order to consider insurance fraud the owner has to have insurance (or believe they have insurance). If investigators believe that insurance fraud is the motive they will check the policy to determine the value, beneficiary, and the date of purchase or last update. Most importantly they want to see if the date of purchase or last update corresponds with any stressor in the owners life (loss of job, failed relationship, significant anniversary, bankruptcy, etc.). That may shed light on the “trigger” leading to the decision to commit arson

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