Archive | Insurance Fraud

New Consumer Protection Law Cracks Down on Scammers Targeting Seniors

As parents age, and the circle comes complete, the children become the caregivers. The last thing you want to worry about, as you work to provide comfort and peace of mind for your loved ones or yourself, is untrustworthy persons taking advantage. At the AME Church (the first African-American church in LA), unsuspecting senior community members lost hold of thousands of dollars, preyed on by a supposedly trusted friend, Constance Gail Fortune, age 61, a licensed insurance agent.

Fortune built friendships and gained the trust and affection of elderly members in the church community. She held gatherings centered around her insurance services, selling policies without actually purchasing the coverage. She provided statements on faux-official letterhead, offered bogus business cards—creating an entire theatrical façade for her scam. Continue Reading →

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How To Avoid a Staged Car Accident

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That breathless moment in the second before an automobile collision and the screeching crunch of metal on metal following are not easily forgotten; it is even worse when the other vehicle involved purposely manipulated the accident for monetary gain. As unimaginable as it may be, thousands of insurance claims filed are for fraudulent, staged crashes orchestrated by crooks seeking to take advantage of you and your insurance. Continue Reading →

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Auto Insurance Fraud On the Rise in California

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Think you’re safe from being a victim of a fraud scheme? Well, think again. Fraudulent dealings are becoming increasingly more common, especially in California. Anybody can become a victim. Insurance fraud schemes are becoming a popular sport for criminals.

Auto insurance fraud claims have risen dramatically in the last few years, up to 11-15% of total payments. In fact, a four-year investigation into an organized fraud ring has just come to light in California with other $1 million missing and seventeen suspects. Continue Reading →

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Worker’s Comp, Opioid Abuse and Small Businesses

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You may have heard this following fact and assumed that it was a lie: More than half of drug overdose deaths involve prescription drugs, and opioid-related deaths now exceed deaths involving heroin or cocaine—combined.

It’s not a lie. It’s a fact from the Centers for Disease Control and Prevention, or the CDC, and they say it’s a growing problem. There are close to 40,000 drug overdose deaths each year, and that number has increased over the last 11 consecutive years. There are more drug overdoses than auto accident deaths in the United States each year. Continue Reading →

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California’s Latest Auto Fraud Trend: Rental Car Schemes

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If you thought that people causing fake accidents for the insurance money was the biggest fraud happening in California right now, you’d be wrong. There’s a new game in town and, according to Kraig Palmer, an investigator with the California Highway Patrol (CHP), rental car schemes are the fastest growing auto fraud trend.

Palmer reported on this trend at the Combined Claims Conference in Orange County last week, and emphasized that it was a multi-level crime, usually committed by opportunistic drug addicts and sophisticated street gangs.  Continue Reading →

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Staged Car Crashes Target Innocent Southern California Drivers

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Being in an auto accident isn’t ever a good thing. Not only does it ruin a perfectly good day (or even a not-so-great one), there’s the insurance to deal with, getting your car repaired, and the real big one—possible injury.

Yet there are unsavory characters out there who try to get in car accidents. To them, it’s a way to make a living. To us, it’s more than just a nuisance. Along with the reasons above, it helps raise everyone’s insurance premiums, and that’s just not fair to the good drivers out on the roads. Especially in a place that relies heavily on cars, like Los Angeles, Orange County, Riverside and San Diego. Continue Reading →

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Riverside’s Silver Fire Victims Targeted by Scams

The aftermath of the Silver Fire

The aftermath of the Silver Fire

Having your home or business destroyed in a fire is a devastating experience. And what’s worse is that some unscrupulous people out there are happy to profit off other people’s misery.

It’s hard to believe, but there are a number of individuals that prey on victims of natural disasters. And sadly, it can be easy to do, since the victims are in a state of confusion and possibly depression, and probably not found themselves in this situation before. So who should they believe?

Luckily for the victims of the recent Silver Fire in Riverside County, California, there’s help to be had. Insurance Commissioner Dave Jones has sent both fraud detectives and members of the Investigation Division’s Disaster and Recovery Team (DART) to the area. These individuals will help educate residents about the potential for scams after a natural disaster like a wildfire. Continue Reading →

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Why Is Insurance Fraud Increasing?

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Did you know that insurance companies paid out over $13 BILLION in auto fraud insurance claims—just in 2011? And if you’re wondering why your premiums go up, this is part of the problem.

And the forecast doesn’t look like we’re in for smooth sailing in the future either: The National Insurance Crime Bureau (NICB) reports that suspect claims continue to increase each year. Between the years of 2008 and 2012, these claims increased by 56 percent. Continue Reading →

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Insurance Scam Targets the Elderly…and the Uninformed

Don't get taken in by unscrupulous real estate transactions.

There are countless reasons why the transactions surrounding buying and selling real estate is a lightning rod for various scams and illegal actions. Often insurance is used as a conduit for siphoning money from uninformed homeowners. Quite often elderly individuals get trapped in illegal transactions that end up costing them their entire life’s savings. Continue Reading →

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