Life insurance fraud can occur in many different forms. For example, it could be when an individual fakes his or her own death in order to gain the amount equal to their life insurance policy (Sheridan, Terry). Sometimes the individual may even be a made up person. Many insurance companies also provide a substantial amount in their life insurance policies if someone is disabled so some people decide to fake a disability. Although this may sound a bit exaggerated it actually occurs frequently nowadays. This is the most common type of scenario when dealing with life insurance fraud. Life insurance fraud usually will involve more than one person. This is because one person usually will receive the payout from the individual’s death. It is difficult for someone to fake their own death and alone be able to receive the life insurance policy. One red flag that should rise to insurance companies in these cases are if the individual’s life insurance coverage increases by a substantial amount prior to their disappearance.
Insurance agents often commit involved life insuran...
... middle of paper ...
Although insurance fraud is raising it should be known that any type of fraud no matter how big or small is unacceptable. One frequent type of insurance fraud that occurs in the US today is life insurance fraud. Life insurance fraud can occur in many different forms such as a person faking their own death in order to gain a large amount of money off their insurance policy. Life insurance fraud is often schemed up and performed by more than one individual. According to statistics life insurance frauds do not occur as frequently as others but when they do they tend to be a significant amount of money. To prevent life insurance fraud companies are beginning to use data clearinghouses to authenticate the identity of the applicants. In conclusion, life insurance fraud is a significant problem in the world and we must continue to take steps to prevent it from happening.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- The early warning signs of fraud are, usually, always ignored. There are warning signs for every type of fraud out there. To understand the warning signs of fraud, we must first know what fraud is. Fraud is the intent to trick someone or lie to someone in order to receive financial gain. This definition varies depending of the type of fraud used, but the person committing the fraud is always looking for financial gain. There are many types of fraud out there. You have Medicare fraud, internet fraud, mortgage fraud, loan fraud, tax fraud, embezzlement, forgery, insurance fraud, and marriage fraud.... [tags: Legal Issues, Corporate Fraud]
2464 words (7 pages)
- Insurance Fraud Insurance Fraud is becoming one of the top forms of fraud in America. Martin Frankel owned several mansions, luxury cars, and diamonds. He lived a life of complete luxury. A life of luxury that was paid for with money stolen through insurance fraud. Martin Frankel is one of the major contributors to insurance fraud. He constructed a scheme to embezzle over 200 million dollars from insurance companies in several states across the U.S. He began his first minor case of insurance fraud in 1986 and was not convicted until 2002 for insurance fraud, racketeering, and money laundering.... [tags: essays research papers fc]
595 words (1.7 pages)
- In 2013, over $21 billion was lost to fraud nationwide, it is considered the fastest growing crime and is perpetrated in nearly every country in the world. Fraud can come in many different forms, from identity theft to the thousands of different scamming tactics used. In its essence, fraud simply refers to deceiving or cheating someone in order to make money or get personal gain. Last year 11,571,900 people became victims of fraud. Fraud is by far the most devastating and expensive crime in the world, and it continues to surge on in full force.... [tags: fastest growing crime]
1409 words (4 pages)
- Introduction “Whoever commits a fraud is guilty not only of the particular injury to him who he deceives, but of the diminution of that confidence which constitutes not only the ease but the existence of society” -Samuel Johnson In our ever changing world, technological advances over the past twenty years have paved the way for and deepened our reliance on the digital and computerized lifestyle; electronic mailing, online social networking, computer gaming, e-book reading, mobile phoning, etc...... [tags: Crime ]
1621 words (4.6 pages)
- Prestigious lawyer and two term Harvard University president, Derek Bok, once said “If you think education is expensive, try ignorance.” (Johnson&Acquaviva, 2014.). This saying is as true, now, as it has ever been. In fact, according to the U.S census bureau (Johnson & Acquaviva , 2012), the average person who has attained higher education will make approximately a million dollars more within their lifetime than someone who chose the career route following high school. Although college seems to be the obvious path, many youth do not pursue college in attempt to avoid the debt tagged to a diploma.... [tags: ncaa, student athletes, college scholarships]
1083 words (3.1 pages)
- Fraud is common among many aspects of society, one of the most prevalent types of fraud is insurance fraud. The fraud occurs on both ends from the insurer, to the people who use insurance including the physicians and the patients. A frauds usually cost Americans about thirty billion each year, which is a high cost for the amount of the money that those involved in the fraud often get from insurance (O'Rourke, 2003). For example, In 1995 alone one trillion were spent on health care, and 10-15 percent of that payment was comprised of health insurance fraud (Skeen, 2003).... [tags: Ethical Issues]
1456 words (4.2 pages)
- As human beings, we all have basic needs that include both physical and economic security, food, shelter, and clothing. According to the Society of Actuaries, risk is the possibility of losing economic security. We encounter many economic risks throughout our day to day activities; whether the risk is a car accident, sickness, house fire, or even death. For such reasons, insurance was created to eliminate risk or substitute certainty for uncertainty. The concept of insurance dates back to at least 3000 B.C.... [tags: Insurance ]
932 words (2.7 pages)
- Banking fraud covers a wide range of areas that include cheque, credit card and online banking fraud. All areas are susceptible to fraudsters; some more likely than others for example online fraud is more popular than phone banking fraud due to technology advancements in the last decade. Card In 2013, £450.4 million was lost to credit card fraud which is an increase from 2012 by 16 per cent which totalled £388.3 million (UK Card Association, 2014). 2011 saw a total loss of £341 million (MoneySuperMarket, 2011).... [tags: Fraud, Credit card, Credit card fraud]
1395 words (4 pages)
- LITERATURE REVIEW Fraud in insurance companies As According to Verma and Mani (2002) analytics can contribute in accompanying your enterprise technologies into a social networking era, Big Data and CRM to crack down on financial offenders. Verma and Mani (2002) highlighted that the increasing number of mobile devices and social media platforms are bringing significant transformations in the world of business including the insurance sector. The opportunities offered by this landscape for insurers are vast.... [tags: auditors, analytics, cryptography]
1363 words (3.9 pages)
- Three things that the elderly (eighty-plus) fear. These uncertainties leave the elderly open to scams. 1. Being hurt by a burglar 2. Losing millions of dollars due to an inability to collect, 3. Not being able to get to the door when Publisher Clearing house comes-a-knocking For the past year, a senior citizen received scam- phone-calls at least three times per day. The information that she passed on to me, seemed farfetched with a possibility of dementia mixed in. At least, that was the consensus among her family members.... [tags: commiting fraud on the elderly]
860 words (2.5 pages)