Economic downturns tend to bring out the worst in people. This not only applies to the COVID-19 pandemic, but to all previous economic downturns as well. The fact that these periods have been marked with a spike in scams is more than enough proof to justify such a claim. With the majority of people still reeling from the effects of the current pandemic, the financial damage that the lack of economic stimulus is bound to bring just makes matters worse.
While we can all agree that we need to show as much compassion as we can during difficult times, we should also exercise just as much vigilance. Not all insurance claims are fraudulent, which is why it’s important to be able to discern one from the other. The following are some signs of scams that you need to watch out for:
False Vehicle Loss Claims
The incidents of fake thefts and fake burnings of newer vehicle models are likely to skyrocket as more people find themselves in the red. This is especially true considering that we’ve seen a major shift to online work in the past few months. The truth is that it’s surprisingly easy to make vehicles disappear, and they don’t carry the same emotional shock as losing your home. Some people even go as far as to stage collisions, which nets them a big boost from fraudulent injury claims.
When mortgages become unpayable, some people go as far as to torch their own homes to escape their mortgage and claim insurance. A telltale sign of this type of fraudulent claim is when a policyholder applies for a rapid and sudden increase in coverage, even when their income doesn’t support it. This also happens right before a foreclosure is scheduled.
Worker’s Compensation Fraud
Employees who are facing an impending layoff could resort to workers’ compensation fraud by setting up a fake injury. There are many resources on how to spot a workers’ compensation scam, but the best solution to determine whether there was an injury is to have the claimant medically evaluated. You can even opt to hire medical canvass specialists like the ones from the Diligence International Group to verify medical treatment claims.
It’s not wrong to say that most people are afraid of contracting the coronavirus. When there’s fear, there’s a tendency for unscrupulous characters to capitalize on that fear. Healthcare scammers come in many forms, whether it’s those who sell fake testing kits or those who steal Medicare user information. This a particularly difficult sector to monitor considering that the healthcare industry is already thoroughly overwhelmed.
We live in desperate times, and it’s not unlikely that some people are going to attempt a crime out of desperation. Remember to stay vigilant. Keep yourself informed and whenever you’re unsure of something, don’t hesitate to ask a professional for help.