Potential Indicators of Insurance Fraud

There are several levels of identifying insurance fraud. One of them is the stage of concluding an insurance contract. At this stage the first contact of professional fraudsters with employees of the insurance company takes place. Recognizing fraudsters at this stage is complicated by a number of reasons:

• the first contact occurs with an insurance company representative who does not have special skills in detecting fraud due to other professional tasks;
• the main focus is on the commercial side of the issue – the main goal is to convince the client to conclude an agreement;
• fraudsters perfectly understand the essence of insurance and the psychology of behavior of insurance company representatives, so it is difficult to recognize them.

Common indicators of motor insurance fraud

Considering that fraudsters are excellent artists and psychologists, here are some typical signs of representatives of the criminal world that can be found during visual observation and verbal communication at the stage of concluding an insurance contract:

• Previously repeatedly convicted persons: they are usually lean physique, have tattoos on the phalanges of the fingers, unfashionable, unkempt clothes, short hair, active gesticulation, the use of slang and abusive expressions;
• Members of criminal gangs: athletic physique, often a massive figure, short hair, expensive clothes, predominantly sporty style, leather outerwear, the presence of massive gold jewelry (seals, bracelets, chains), confident behavior of the “masters of life”, the use of slang expressions, the presence of expensive cars in the absence of an official place of work;
• Professional fraudsters: strict, business style, expensive clothes and shoes, a model hairstyle, the presence of a respectable person’s assortment: a business card holder, a tie bar, a cigarette case, a leather briefcase, an electronic address book, an expensive cell phone. As a rule, fraudsters “splurge” with the help of simulated calls and telephone conversations, which are allegedly conducted with a subscriber whose name is deliberately pronounced aloud to impress those present. They are pleasant, correct and polite in communication. In general, they make a very good impression and have a liking;
• “Fake” policyholders. This type of clients can be recognized only by one sign – they are completely unsuitable for the role of owners of the insured property: either they are too modestly dressed for the owner. For example, they are confused in the name, cost, technical characteristics, place of purchase of property;
• Proactive or “office” insurance. We are talking about cases when clients stubbornly insist on the conclusion of an insurance contract, come to the office of the company themselves, do not want to postpone the conclusion of the contract until tomorrow, they are clearly nervous, do not pay attention to the lunch break, the end of the working day or the absence of specialists;
• Full payment of contributions. It is common for scammers to try to pay insurance premiums in full and immediately. This is due to the fact that they want to fulfill all formalities related to the validity of the concluded contract by 100%. Special suspicion should be caused by cases when the potential insurance has just the amount that is necessary for a lump sum under this agreement;
• Targeted insurance. This feature is characterized by the fact that unscrupulous policyholders give themselves away by insisting on the conclusion of an insurance contract against a specific risk. One gets the impression that they know in advance what kind of insured event will happen to them;
• Consulting. We are talking about those cases when several people come to conclude an insurance contract. Usually one of them acts as the policyholder and declares which insurance contract he or she would like to conclude. After receiving the options from the insurance representative, the client leaves to consult with his/her friends. As a rule, these are the cases when fraudulent organizers “expose” another person instead of themselves. Usually the insecure behavior of such a person is immediately noticeable;
• Inspection manipulation. Fraudsters sometimes too deliberately present property for inspection, showing every thing, or vice versa, they try in every possible way to avoid inspection of property by an insurance agent, limiting themselves to presenting documents confirming ownership of the property, as well as lists of property subject to insurance;
• Special conditions of the contract. We are talking about cases when the client offers to conclude a non-typical insurance contract. Conditions that are significant for the insured may be unusual: by the terms of the contract, by the insurance object, by the type of risk, by the territory of insurance coverage, by the beneficiary, by the value of the insurance object. In other words, these are all cases related to attempts to conclude a non-standard insurance contract. These are cases when fraudsters try to “adjust” an already accomplished or planned event to the specific terms of the contract;
• Inflated cost of the insurance object. Sometimes fraudsters pretend that they are trying to conclude an insurance contract for exactly the amount that they lack, for example, to repay a bank loan or a debt in a casino. Moreover, they artificially and obviously overstate the value of the property that is at their disposal. They ardently convince the insurance representative that they have acquired this property for “this” amount;
• Unnatural behavior. Fraudsters “go to meet” the insurance agent in everything: they provide the necessary documents without delay. When concluding an insurance contract, fraudsters behave unnaturally: they want to please the insurance agent in everything, “jokingly” ask about the possibility of deceiving the insurance company, create an aura of friendliness;
• Negative attitude. Fraudulent insurers may show a clear negative attitude towards the activities of the insurance company, complain about unreasonably high premiums and lack of money; sometimes they appeal to the feeling of pity of the insurance agent, informing him or her of their troubles and financial difficulties while hinting about the desire to use the receipt of insurance payments to solve these problems.