Now and then IE likes to scour the internet for fraud and scam stories, as it can offer insurers clues on latest techniques, common factors, or just the odd #fail as fraud is busted. Here’s some recent stories;
CALIFORNIA DREAMIN’
The Insurance Dept of California has allegedly busted a crash-for-cash type arrangement, bringing criminal charges. This case will be familiar to many UK motor insurers.
An alleged “family and friend” organized auto insurance fraud ring was thwarted by the Urban Automobile Insurance Fraud Task Force. Seven individuals were arrested in connection to this case. In total, 23 individuals face felony counts of insurance fraud and conspiracy. Alleged ring leader, Gerson Castro Martinez, 34, of San Jose, was arrested July 29 on eight felony counts. Castro allegedly involved family and friends in a fraud scheme that netted defendants more than $174,000.
An investigation uncovered 33 claims that contained a similar modus operandi, where repeat damage claims were made, insurance policies purchased either with fictitious identities or involved parties that knew each other but reported claims as though they were strangers and had been involved in a loss. The ring used at least 40 different vehicles, some purchased with damages on them, and some sustained damages in staged collisions. They ran the scheme for four years. More details here by the way.
FAKE DOCUMENTS AND ADMIN CHARGES
One ancient scam involves telling someone they have money gifted by a relative, or a Life policy which has matured, compensation payment due etc. All you need to do is fill in this form and pay an admin charge and the cash is yours. The Times of India reports on a priest who was duped over a fake insurance policy maturing, then he paid various fees to the scammer to release the policy sum.
More background here.
SENTENCING EXPECTED LATER THIS YEAR IN SWANSEA PPI SCAMS
The long running saga of Swansea based HES, who misled consumers regarding PPI compo is expected to wrap up in October, when those found guilty will face sentencing. The scam involved automated calls to people offering a chance to claim PPI compensation, so long as they paid some cash upfront. The local news site has the details.
PUBLIC SECTOR SLOTH
One detail that is often overlooked in any insurance fraud, or dubous claim investigation, is how long it can take to obtain original documents from the public sector. Maybe it is working from home, poor management, or weak data storage and retrieval practices. But the case cited in the Law Gazette involving the Land Registry, which has dragged on for over a year, raises the issue nicely. More here.
CHARITY BEGINS AT HOME. WITH A TREADMILL
There are so many cases of dubious charity activities it’s hard to know where to start. But this case reported by Horse and Hound, involving the false fundraising for horses affected by Australian bushfires, highlights the easy pickings to be had. Especially when something topical is all over the news, like say a veteran walking about to raise funds for the NHS perhaps, although that’s an different matter for another time.
Kerry Palin raised about £34,000 using Facebook, and donated 5 Australian dollars to the actual charities, while spending cash on herself, including beauty treatments and a new treadmill. She received one year and four months jail time, which is highly unusual in charity fraud cases in the UK. Most get away with suspended sentences, even when the amounts involved are above 100K.
More details here.
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