Insurance Fraud Knows No Boundaries

Agencies of all kinds have been cracking down on insurance fraud, and it’s time for this trend to continue to expand through national and international channels to fight fraud at all levels. Insurance fraud doesn’t just siphon money away from faceless corporations: the pinch will be felt even by everyday consumers as their premiums rise to compensate. September’s issue of Claims Magazine elaborates on some of the extensive fraud rings that have been busted recently in “From Pasha to Prisoner: The Story of Mikhail Zemlyansky”.

Insurance fraud often grows to encompass multiple different areas of theft and false claims. In Zemlyansky’s case, his New York crime ring included doctors, lawyers, auto repair shops, and more, all pushing false claims related to staged crashes, workers’ compensation bills, private healthcare, and Medicare-Medicaid benefits. As the largest no-fault auto scheme ever charged, it represents a growing trend in insurance fraud: a shift from small, mainly ethnic fraud rings to larger, more organized multinational outfits capable of stealing outrageous sums of insurance money.

Naturally, auto insurance, private health, workers’ comp, and Medicare have shared interest in disrupting these schemes. One new alliance, the Healthcare Fraud Prevention Partnership (HFPP), is helping to fight fraud rings by encouraging its members to collaborate and share intelligence and successful strategies. By working together, members including the Department of Justice and various anti-fraud organizations can help catch crime rings earlier in their operations, cutting off their access to more fraudulent funds. Federal courts are also taking fraud cases very seriously, handing out stiff penalties and jail terms to convicted fraudsters. By working together, law enforcement, private insurers, and other agencies can take an effective stand against would-be fraud rings, protecting themselves as well as, ultimately, the everyday people who are their clients.

Kompani Risk & Insurance Solutions, Inc. takes fraud very seriously. Our CEO, R. Glenn Matsen, is a seasoned insurance broker who keeps a sharp eye out for any fraudulent activity and is committed to fighting fraud right at the source to protect his reputable clients. He works with clients directly and can be reached at 415.692.3464, ext 103. Give us a call or fill out our online contact form today to make sure your insurance services are being handled by a trustworthy broker.