Fraud is an unfortunate reality in business today, particularly for banking, finance, healthcare and insurance companies. Not just commonplace, it is profitable enough to attract organized crime rings.
Executive SummaryAttorney Frank Goldstein believes that many insurance companies are partially to blame for the rise of fraud because the industry simply is not aggressive enough in the battle against fraudulent activity. Here, he lays out some considerations for insurers that are tired of being labeled "soft touches" and want to make a statement against claims fraud.
Nothing demonstrates that better than law enforcement’s findings when they recently busted a staged-crash organization in Florida. Investigators uncovered evidence that offered revealing insights into just how detail-oriented these insurance fraud perpetrators were.
Among the implications, the ring’s leaders knew which insurance companies were perceived as “soft touches” that were willing to pay claims they knew were fraudulent rather than spend any resources fighting obvious criminal activity.