What Is Insurance Fraud?

Fraud is a term that describes deliberate deception which is made for personal gain. In layman's terms, this means a lie told in order to get something you want. It is both a crime and a violation of civil law. Fraud is often committed for financial gain, and it is very frequently committed against insurance organizations.

Because they tend to be large and impersonal in nature, and because some people find it easier to take money from a large organization than from an individual, insurance agencies are frequent targets of fraud. However, this is just as illegal as committing fraud against an individual. Medicare estimates that fraud committed against the organization accounts for approximately $180 billion annually. Insurance fraud costs about $875 per each US citizen, and when insurance fraud is committed, it is tantamount to stealing from everyone else who uses that insurance agency.

Recognizing Insurance Fraud

There are several types of common insurance claims frauds, including:

• Health insurance fraud. Common types of health insurance fraud include listing ineligible dependents, lying about pre-existing conditions, lying to obtain prescription drugs, and exaggerating medical claims.
• Auto insurance fraud. This often includes the staging of accidents, either between multiple vehicles or pedestrians and vehicles, and exaggerating the damage caused by accidents.
• Homeowner fraud. This type of fraud includes lying about damages to your house or exaggerating the costs of actual damage.

Contact Us

If you have been accused of committing insurance fraud, contact the Denton criminal lawyers of Alexander & Associates by calling 972-420-6560 for the representation you need.