In every commercial sector, there are those that make money using conventional means while others use very unorthodox ways to acquire the same. Fraudsters and conmen will always be there as long as money and the means to get the money exists. If you do not want ever to be a victim of such cunning characters, you must be knowledgeable on the tricks and the deception that they apply. One of the industries where these fraudsters try to infiltrate is the insurance industry. They try to device fraudulent schemes because they know there is lot money involved in the insurance industry.
In simple terms, insurance schemes can be described as the deceptions involved in insurance processes. Insurance frauds work in both directions between the insurance company and the insured party. It can arise in a situation where the insured entity/person makes a fake claim from the insurer. At the same time, it can also be a situation where the insurance company refuses to pay the claimant despite the legitimacy of the claim. In both scenarios, the common denominator is greed. For instance, where the insurer over-insures a property and later destroy it deliberately to claim the benefits.
The different types of insurance frauds are Life Insurance, Health Insurance, Automobile Insurance, and Property Insurance. The life insurance fraud is an elegant and well-structured type of con game where a person takes the life insurance policy and later fake death when the due amount is reasonable for the beneficiaries to claim. In some instance, they may site memory loss as an excuse. Life insurance fraud involves two fraudulent schemes namely Churning and Twisting. Churning is a situation where an insurance agent tricks the insured into draining the policy fund and use the money to fund a new one with the same insurance firm. Whereas, Twisting is a scenario where the duped policyholder removes the fund and uses the money to fund another policy with a different insurer. To know more ideas on how to select the best insurance, go to https://en.wikipedia.org/wiki/Life_insurance.
Insurance frauds are the reason why Insurance Fraud Investigator is hired. In a nutshell, the job of the insurance fraud investigators is to ascertain or determine if a claim is fake or genuine. It is a job that requires one to be a critical thinker, have inquisitive personality, and not be oblivious to anything despite how neglible it may seem to be.
The Insurance Fraud Investigator possess very high ethics levels combined with a strict code of conduct so that whatever conclusion they come up with can be admissible in a court of law.