11 Oct Most Common Types of Fraud We Investigate
Find Out The Most Common Types of Fraud Our PI’s Investigate
Our private investigators are often hired to conduct fraud investigations. Fraud happens more often than you think, and anyone, regardless of their education and IQ, can become a victim of a fraudulent scheme. About $40 billion a year are lost in favor of con artists. That’s why it’s better to know a few things about fraud or, at least, turn to experienced private investigators to solve a fraud case.
But what exactly is “fraud”? Fraud is defined as an intentional or deliberate deception for unfair or unlawful gain. As expected, fraud can take numerous shapes and it can be instrumented by almost anyone. Here are the most common types of fraud we investigate.
False insurance claims are usually filed to obtain a benefit from an insurance provider without actually having the right to claim it. It happens quite often, insurance companies having to pay billions of dollars each year to cover the costs of false insurance claims. Private investigators can find out if the claim is justified by following the subjects of an insurance claim and concluding if they’re entitled to the claim. The insurance fraud can go as far as people declaring other persons deceased just to cash in the insurance money.
Workers compensation fraud
Accidents can happen at work and the company has the obligation to cover the costs incurred by the worker’s hospitalization, recovery, therapy etc. However, this obligation often creates the perfect gateway for fraud. There are cases when the workers claim they’ve suffered various injuries, like back, shoulder or neck injuries without this being true. Our private investigators can research the case, follow the subject of the investigation and find out the truth about their claim. One of the most common worker’s compensation fraud? Back injuries!
Rental insurance fraud
Rental insurance fraud usually involves large policies that cover the theft or damages in a home. The individual that tries to con an insurance company will usually sustain their house was broken into and the thieves stole certain amounts of money or valuable items. Private investigators solve this type of “mysteries” fast by talking to the individual’s friends, colleagues, and neighbors and finding people who can confirm the person’s story. They will also verify the legitimacy of the purchases to make sure the individual’s claim is justified.
Transit fraud has as subject transit companies. Passengers of buses, subways or streetcars can injure themselves during transit. This can happen if they aren’t seated properly or don’t hold onto a rail when the vehicle stops. The most common types of injuries are arm or shoulder injuries, as well as foot injuries. Private investigators have as goal finding out if the injury is accidental or intentional. You would be surprised to find out how many people allow a bus to strike them with the mirror or even run over their feet to be able to file a claim.
Online classified and ticket fraud
When it comes to online classified frauds, our private investigators are often conducting skip tracing investigations to identify and locate the person who scammed the buyer. This is usually common for online classifieds for cars. The same goes for ticket fraud. Many of our clients purchase tickets for sports events or various concerts just to find out their ticket is not genuine or has already been used.
Expense claim fraud
Large companies often hire us to see if their employees have a right to the expense claims they’re making. Companies usually pay a certain amount of money per day to their employees who have to travel for work purposes. For example, a company may allocate $300 per night for accommodation. The employee claims the entire amount even though they’ve stayed in a cheap hotel, so they can cash in the rest of the money. This is just one of the many (less serious) examples of corporate fraud.
Due to our vast experience in the field and our access to numerous sources of information, we usually find it easy to detect fraud. Fraud is common but this only means that we know everything about the traces it lefts behind and how to get to the truth.