SGI releases top five insurance fraud schemes
Mar 15, 2018
"March is Fraud Prevention Month in Canada, and SGI reminds
customers that insurance fraud is a problem that costs the insurance industry –
and ultimately its customers – millions of dollars every year. Making a false
or exaggerated insurance claim jeopardizes your coverage and is a criminal offence.
“Unfortunately, property and automobile insurance fraud is
still a reality for every insurance company,” said Penny McCune, Executive Vice
President and Chief Operating Officer of the Auto Fund. “There’s this
misconception that it’s a victimless crime and if it hurts anyone, it’s only
affecting a big corporation. But insurance fraud means higher insurance rates
for you, your family, friends and neighbors.”
Here are SGI’s picks for the Top 5 Frauds of 2017:
Deceitful receipts
A theft claim was made under an SGI CANADA property policy
for a number of expensive items including clothing, computer equipment and
jewelry. This fraudster was able to provide several receipts to show the value
of the items.
But one receipt in particular raised suspicion; it was for
an expensive diamond ring. Most things added up. The jewelry store was
legitimate and the address was correct, but it was missing the postal code. In
its place was a line that read ZIP CODE.
The cyber-sleuthing skills of SGI’s investigator led to an
online receipt generator. Sure enough, the format of the online fake receipt
was exactly the same as the one provided for the ring. It all started to click:
the site was American and wouldn’t accept a six-character Canadian postal code
in the five-digit zip code field.
The jewelry store confirmed the receipt was a fraud and the
case was closed with a total savings of close to $25,000. The customer’s entire
claim was denied, and his name is flagged in SGI’s system as a future risk. His
fraudulent actions could also impact his ability to receive coverage elsewhere.
Called out by the car
One vehicle owner dreamt up the perfect story – or so she
thought. She claimed someone hit her parked vehicle and then took off… but her
vehicle’s onboard computer told a different tale.
Thanks to information downloaded from the Event Data
Recorder (EDR) – something most vehicles have today – the investigator learned
not only was the vehicle moving at the time of the collision, but the collision
also happened on a completely different day than the owner initially
reported.
When presented with the findings, the vehicle owner withdrew
the claim. Catching the owner in a lie saved SGI, and ultimately its customers,
more than $8,000.
Caught on camera
A local business’s video surveillance system saved $14,000
in claim costs.
The vehicle owner said his vehicle was stolen and then found
damaged near a local business. SGI’s investigator located a security camera at
the scene and reviewed footage from the night of the “theft.” It clearly
revealed the owner himself driving the already-damaged vehicle and parking it
in the exact spot it was found.
SGI denied the claim and the vehicle owner is facing
criminal charges.
A smokin' scam
In the early morning hours, police and fire services
responded to a call of a burning vehicle. The owner claimed he had no idea who
would want to vandalize the vehicle.
But the pieces started to fall into place with a neighbor's
tip. Soon it was obvious there was something suspicious about this fire.
Thanks to the neighbor's willingness to share their
security camera footage (they really are everywhere!), the investigator watched
an individual approach the vehicle and tinker under the hood for a few moments
before leaving the scene. The video showed the vehicle go up in flames moments
later. Further investigation connected the owner of the vehicle to the
fire.
The owner’s claim was denied, saving an estimated $8,000,
and on top of that he’s facing criminal charges.
Hot tip exposes arson
A logging truck broke down on the side of a highway in
Northern Saskatchewan. According to the owner, they returned later to have it
towed and found it completely burned.
Not long after the claim was made, SGI received an anonymous
tip that the owner had intentionally set the truck ablaze. The burnt remains
were examined and the investigator found clear evidence the fire was
intentionally set. Further investigation confirmed the owner was behind the
scam.
SIU looks into every tip they receive, and this one helped
to expose a $60,000 fraud. The owner was also charged criminally.
Take it from these would-be fraudsters: if you commit
insurance fraud it leads to denied coverage and could result in criminal
charges. It also means you’re flagged in SGI’s systems as a future risk, and
can make it difficult to receive coverage from other insurers. On top of all
that, the bill to fix that “stolen and damaged” property or vehicle is now the
attempted fraudster’s responsibility.
Anyone with information about potential insurance fraud is
encouraged to contact SGI's Special Investigation Unit at siu@sgi.sk.ca or
1-800-667-8015, ext. 6887. To report anonymously, call Saskatchewan Crime
Stoppers at 1-800-222-8477"
Contact
Media inquiries
Tyler McMurchy
Manager, Media Relations
Saskatchewan Government Insurance
306-751-1837
306-535-6207 (cell)
tmcmurchy@sgi.sk.ca
https://www.sgi.sk.ca/news?title=busted--sgi-releases-top-five-insurance-fraud-schemes
