Insurance fraud can take on many forms. Most of the time this occurs when an insured person makes an exaggerated or false claim with the idea of obtaining compensation for losses or injuries that were not suffered.
When it comes to insurance fraud, there are times when the insurance company handles the wrongful act as an internal issue. There are also situations in which this is brought to the attention of law enforcement.
There are two basic types of insurance fraud:
- Soft fraud. This is when a typically honest person tells a lie in order to maximize the value of a claim.
- Hard fraud. This happens when a person fakes a theft, injury or other loss in an attempt to illegally collect from an insurance company.
While soft fraud is not as serious as hard fraud, either one of these crimes can lead to a serious punishment.
Some of the most common forms of insurance fraud include: false disability claims, false slip and fall claims and using another individual’s identity in an attempt to receive health care.
Since there are so many types of insurance fraud and since there is so much gray area associated with each one, it’s possible that a person could commit this crime as an honest mistake. This is particularly true when it comes to matters of soft fraud.
If you find yourself facing an insurance fraud charge, you must learn more about what happened and how your case will move forward. The information you collect will help you understand your situation and how to implement the best defense strategy.
Source: FindLaw, “Insurance Fraud,” accessed Jan. 05, 2017
