How Insurance Fraud Is Rising At an Alarming Rate

Insurance Frauds are becoming very common these days, not just in India. Cash for crash claims are rising sharp! Most of the people do almost anything to avoid getting into a collision, but for some, a collision is just one of the best ways to fatten their wallets. Today in this fast pacing tech world, insurers are pressurized by various fraudsters who are employing special tactics to alter their claims and acquire access to unauthorized funds.

The year 2013 has witnessed 130,000 fraudulent insurance claims according to The Association of British Insurers (ABI). Why and When Fraud Cases hike?

•As personal debts increases, so do the false insurance claims. When the year 2008 witnessed serious financial crisis and recession, the forged claims augmented to 17%. People become quite very desperate while handling financial pressures that they tend to fake their claims.
•If the year had many disastrous events like hurricanes, then there will be a significant increase in the insurance claims.
•A combination of other factors such as economic climate and lack of effective deterrents are helping the number of cases of insurance fraud to shoot up.

Insurance companies are facing great pressure in cracking the fraud insurance claims. Fraudsters are utilizing well planned tactics to get benefited from forged claims. For instance, they fix damaged panels to their car to show that they he/she has met with an accident. These companies further point out that more than 50% of the insurance claims paid are not investigated by them.

High time to utilize comprehensive approaches of Background Verification Companies.

To combat and prevent such losses, it is necessary that the insurance companies/ organizations employ the services of Background verification companies at the earliest to detect unlawful activity.

Fourth Force is one of India’s best Background Verification Company equipped with RAW, CBI and State officials, it is known for executing comprehensive screening in several distinct sectors. They efficiently help insurers detect and also combat insurance fraud by providing holistic fraud risk management support throughout the claim process. By associating people, events and several other integral elements, Fourth Force detects and prevents insurance frauds that traditional systems cannot predict.