Insurance fraud is an act which is committed with an intention to do fraud to get payment from an insurance company. There are many types of insurance frauds, they occur in all area of insurance.
Now-a-days, the global insurance industry is facing a threat from fraudulent activities of cheaters. The important thing is to determine the origin and cause of such activities.
There are some factors which contribute to growth of the number of fraud cases. Such as:
- Improper fraud laws: Many of the prosecutors find difficult to manage with legal cases which are associated with insurance frauds across the United States. This kind of things happen in many states, because of the fact that insurance laws are not at all equipped to counter frauds. There are no proper laws to guide the insurers and consumers across the 6 states in the United States.
- Easy victim health care system: The Health-care system of the US is large and influential. Con artists are given chance by this to try out their skills at robbing wealth of the insurance industry. Many eminent doctors and health firms began to cheat the consumers and insurers during recent days.
- Immigrants are an easy target: Generally, many people from Asia and other countries come to US, so, these immigrants are becoming target to the insurance con artists. They do not have proper insurance knowledge and inability to understand the English language, so, these reasons are creating problems for these people.
- Less risk of Fraud: Frauds of insurance seems to be lower risk crimes to con artists while comparing to the other crimes like burglary and drug trafficking. So, it may increase the insurance frauds.
These factors can cause insurance fraud in United States. Now-a-days, global insurance industry is suffering from Insurance fraud.