Insurance scams up in pandemicPosted On: Dec. 10, 2020 12:44 PM CST
While long-distance, socially isolated romance scams and online banking scams are having a heyday during the COVID-19 pandemic, a Reuters news report on busy days for those charged with catching fraud points to that affecting insurance companies as a major issue.
According to BAE Systems Applied Intelligence research, U.S. insurance fraud, mostly where scammers seek to dupe insurers on costs incurred as a result of COVID-19 restrictions, has doubled in 2020, so far costing the industry $100 billion, according to the report.
Dennis Toomey, BAE’s global director for counter fraud analytics, told Reuters there has been a surge in “creative claims,” ranging from car hire firms inflating the costs of sanitizing vehicles to policyholders logging multiple claims with different insurers for the same cancelled trip.
“The conditions are perfect for creating a perfect storm ... high motivation and low protection,” Mr. Toomey told the wire service.
More insurance and workers compensation news on the coronavirus crisis here.