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Discover Some Of The Common Insurance Scams Happening In 2022

In fact, since the beginning of 2020, the Federal Trade Commission (FTC) has received over 732,000 consumer complaints about COVID-19 and stimulus payments, with 72.5 percent alleging fraud or identity theft. Consumers have lost $778 million due to these scams, with a median loss of $415. Woah!

One of the biggest examples is insurance scams. I mean, can you believe that hackers can use your insurance to get medicines, prescriptions, and much more? This can result in higher costs for you as well as a risk to your health because the thief’s medical information will now be mixed in with yours.

Want to know more about these ever-growing insurance scams and how to prevent becoming a victim? Keep reading!

Insurance

Study shows that nearly 40% of those who Report Fraud attacks are young adults between ages of 20-29 yrs old

If you want to keep yourself safe from falling victim to internet scams, then you’re definitely at the right place. We can give you the best practices in identifying red flags as well as help you in recovering your stolen money from scammers!

Table of Contents

Insurance Scams - Here’s What You Should Know

Are you wondering why it is important to understand these different insurance scams? According to the FBI, insurance fraud costs over $40 billion per year (apart from health insurance scams).

These scams are extremely expensive, raising the cost of insurance premiums to a large extent. In fact, an average family may have to pay $400 to $700 more per year due to these insurance scams. How devastating!

So before you get caught up in one of these, let’s try to read about them so you can be safe.

Car Insurance

Common Car Insurance Scams

From fake injury claims to fraudulent car repairs and staged accidents, car insurance scams seem to be increasing a lot.

Talking about fake injury claims, imagine you’re in a rush one day, getting late for class, and that is when you get into a collision with another car in the parking lot out of distraction. A few days later, the other driver makes a claim of whiplash or other injuries. Well, this fake injury claim can increase your premium payments. Also, parents are likely to become targets of this scam because a scammer may perceive them as disengaged and willing to deal with the issue.

Moreover, if we talk about fraudulent car repairs, then although most of us drive, unfortunately, not everyone is familiar with what goes on inside a car. Unethical mechanics take advantage of consumers’ ignorance and charge insane amounts of money to install substandard parts. Hence, these fraudulent car repairs can be extremely costly and risky.

Lastly, we have staged car accidents, also known as intricate schemes. It has become extremely common for scammers to carefully choreograph an accident with false testimony and advice from fake witnesses, physicians, and attorneys. Sadly,  the combined efforts of these people make it difficult for the innocent driver to prove what really happened.

life insurance

1. Car Insurance Scams

From fake injury claims to fraudulent car repairs and staged accidents, car insurance scams seem to be increasing a lot.

Talking about fake injury claims, imagine you’re in a rush one day, getting late for class, and that is when you get into a collision with another car in the parking lot out of distraction. A few days later, the other driver makes a claim of whiplash or other injuries. Well, this fake injury claim can increase your premium payments. Also, parents are likely to become targets of this scam because a scammer may perceive them as disengaged and willing to deal with the issue.

Moreover, if we talk about fraudulent car repairs, then although most of us drive, unfortunately, not everyone is familiar with what goes on inside a car. Unethical mechanics take advantage of consumers’ ignorance and charge insane amounts of money to install substandard parts. Hence, these fraudulent car repairs can be extremely costly and risky.

Lastly, we have staged car accidents, also known as intricate schemes. It has become extremely common for scammers to carefully choreograph an accident with false testimony and advice from fake witnesses, physicians, and attorneys. Sadly, the combined efforts of these people make it difficult for the innocent driver to prove what really happened.

Do you suspect that someone had scammed you?

If you have any suspicion of a scam or phishing attack, then you can rely on TheClaimers to help you with protection, mitigation, and fund recovery. You will feel safe knowing that experts with years of experience will be guiding you!

2. Life Insurance Scams

Life insurance provides financial security for their family if they pass away. However, a life insurance scam tells something opposite.

For example, beneficiary scams are the most common way for scammers to regard life insurance fraud. Scammers can claim that even though you were designated as the beneficiary of a recently deceased person’s life insurance policy, they are unable to pay you because of an unpaid premium balance. Watch out for this scam if you’ve recently lost a loved one. Scammers are always on the lookout for potential victims.

Then comes phony contacts. Fraudsters could use your email address, phone number, or text message to get in touch with you and ask for money or personal information. They may say there’s a problem with your current life insurance policy and request for your Social Security number or payment to maintain the policy in force. How pathetic is that!?

health insurance

3. Health Insurance Scams

Do you know that with health insurance scams, you can end up with a so-called “health plan” that covers little to no medical costs rather than the health insurance coverage you and your family were hoping for? Also, it can force you to pay hefty medical expenses.

Moreover, people that steal your information don’t only use it to make expensive purchases. They can also use it to receive medical treatment by using their Social Security number and health insurance account numbers. Hackers can use your insurance to get medicines, prescriptions, and more.

This can result in higher costs for you as well as a risk to your health because the thief’s medical information will now be mixed in with yours. In fact, according to research conducted at Michigan State University, there were nearly 1,800 medical data breaches involving patient information between October 2009 and December 2016. Damn!

Hence, deciding upon health insurance options can be an overwhelming and confusing method. Scammers know this, and they try their best to use it to their advantage.

Protect Yourself from Insurance Scams Now!

Learn to protect yourself from insurance scams with the help of expert advice. The primary reason why insurance scams take place is because an individual’s insurance details have been compromised.

Therefore always ensure that your insurance information is saved in a safe place. If they are on your computer, make sure it is password protected. Moreover, keep physical documents of your insurance details locked away in a safe or a safe spot.

Key Takeaways!

You may be wondering if this happens in the real world. Can anyone genuinely profit from health insurance scams? So, the answer is yes. This is a horrible world we live in.

If you fall for any of these insurance scams mentioned above, share them with your loved ones. They might refer you to a regulatory agency like The Claimers, where you can file a report once you’ve gathered all the necessary information. They will help you reclaim your deposit. Good luck, and stay safe!

do you need help?

A lot of those who contact us have questions and concerns about their personal and business data being compromised. We aim to arm you with the legal and technical know-how in the fight against scams. Also, we will be able to refer you to top scam recovery agencies.

Please fill up the form. Rest assured that our support team will get in touch with you

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