Corporate fraud schemes can fall into all types of categories. With hundreds of different fraud schemes out there it’s hard to determine the exact cost to companies across the nation. It is believed that these corporate fraud schemes cost insurance business billions of dollars every year. Believe it or not there are two specific types of corporate fraud involving insurance companies that all these schemes fit into…very simply hard versus Soft fraud.
Hard corporate fraud schemes are meticulously planned out. As an example of a “hard” fraud scheme, setting an arson fire to collect insurance money on a building. Most organized crime rings have some sort of hard fraud scheme game they are into. It can be setting up auto accidents or even as intricate as an auto theft ring.
Soft corporate fraud is much more common in the scheme of the general world population. Soft fraud is committed when an individual has an “opportunity” to exploit what might actually be a legitimate insurance claim.
Let’s look at an example of soft fraud. An employee falls at work, shatters their knee and has lots of medical claims to deal with. Some of these medical claims revolve around physical therapy. Well, if the employee thinks about it, they can drag out physical therapy for months, collecting monies for treatments they didn’t really need. The original knee injury claim is legitimate; however the additional costs are not.
Do you think that corporate fraud is occurring in your business? Contact us or call 1.770.426.0547.
