What Is Insurance Fraud?

What Is Insurance Fraud?

The cost of insurance fraud in the insurance industry is $80 billion per year. Some forms of insurance fraud, according to the FBI, are Workers' Compensation Fraud, Disaster Fraud, Property Insurance Fraud, and Stage Auto Accidents.

In auto accident fraud, the prosecution will charge that perpetrators stage auto accidents with another party or attempt to maneuver unsuspecting drivers into accidents. Generally, these cases will remain under the radar because the value of the property damage is small. However, it is alleged that the individual will make claims for fake injuries or property damage. Of course, this is a national problem because the rise in premiums will be pushed to all drivers.

This is also closely related to property insurance fraud. These individuals will commit arson, drive their vehicles into lakes, or boat owners sinking (also known as scuttling) their boats for the insurance money. However, the claims will be for more than the value of the property.

If you have been charged with insurance fraud, contact a Plano criminal defense lawyer. Hire our expert attorneys to aggressively defend and represent your rights.