Coalition Against Insurance Fraud: Getting riled up for fraud in Twittersphere

Useful for egging on scams, teaching about dumb choices

Fraud braggadocio is alive and kicking on the Twittersphere, as we recently reported in FraudBlog. Now for another frontline dispatch …

Easy money … fun … risk-free. Like a video game — only for stealing real insurance dollars. That’s a frequent voice vote by consumers in our daily Twitter and Facebook convos.

A Tweeter riled up folks about slipping and falling his way to illicit payoffs in a recent thread using the hash tag #BoutToSlip. He said:

“I prayed and asked God to increase my finances and BEHOLD I found a wet floor with no sign in sight. #BoutToSlip”

Others used the same #BoutToSlip hash tag and chimed in:

“A wet floor with no sign at work? I prayed for this come up #BoutToSlip”

“God is good. I asked the Lord to finance my college and I see this unsalted and not shoveled pavement. #BoutToSlip”

We don’t know if these people made illegal claims. Yet mere braggadocio might click on a crime lightbulb and convince other Twitter followers to try an insurance scam. The thread above was retweeted 17,000 times. Fraud looks like so much fun. Why wouldn’t others wet their lips and try a seemingly easy grab for insurance payouts?

Until the real world steps in. Make dumb choices, make time for a permanent criminal record. That’s a big deterrent message we share on Twitter.

Doses of dumbness showed up in our recent live Twitter chat. Workers-comp investigators advised how to thwart fake injury claims.

The nub — bilk your employer at your peril. Surveillance videos posted and retweeted during the live chat drove home the point. Like the rocker who did a Beatles tribute concert while “injured.” ... Or the guy who said he couldn’t turn his head yet had a sweet swing on the golf course.

A worker stomped a hole in the floor and claimed he fell in it.

Twitter is a great forum for bragging and egging people to try an insurance scam. It’s an equally useful way to show people that dumb choices can earn a permanent price. Is a criminal conviction really worth it?

Coalition Against Insurance Fraud: Allow EUOs without court order

Examinations under oath help insurers combat fraud and should be allowed without requiring time-consuming court orders in Kentucky, the Coalition Against Insurance Fraud and National Insurance Crime Bureau say in a joint amicus brief filed today with the state’s highest court.

“This tool benefits insurers and honest claimants by providing a means for determining the circumstance of accidents and the nature of injuries, and an intelligent, well-formed decision as to the applicability of coverage,” the anti-fraud groups say in the brief to the state Supreme Court.

Two Kentucky motorists claimed they were injured in a crash. They sought no-fault benefits, yet refused to take part in an examination under oath (EUO). The state appeals court said the insurer must obtain a court order to conduct the interview. State Farm appealed to Kentucky’s highest court.

EUOs uncover information that enables insurers to make intelligent claim decisions that can stymie fraud and help keep auto premiums affordable for honest drivers, NICB and the Coalition say. Importantly, EUOs also validate honest claims and help ensure payment as promptly as possible.

"EUOs are a time-tested tool, valuable tool. They are utilized in every form of insurance coverage,” the anti-fraud groups say.

Claims will be needlessly prolonged if EUOs must be resolved in courts instead of efficiently between insurers and claimants, the Coalition and NICB contend.

Requiring court orders “encourages litigation by forcing insurers to obtain a discovery order from a court every time it is necessary to investigate a claim,” the Coalition and NICB argue.

The expensive, time-consuming effort will weaken anti-fraud efforts in the Kentucky.

“The result is higher premiums, potentially higher coverage deductibles, and the threat that insurers will cease doing business in Kentucky if they cannot efficiently combat suspected fraudulent claims and financial loss becomes guaranteed,” NICB and the Coalition say.

Insurers must be empowered to resolve claims as promptly as possible. EUOs elicit vital information and thwart fraud that drives up auto premiums in Kentucky.

“EUOs allow the insurer to investigate the veracity of medical reports generated by providers. … They allow the insurer to verify that treatment actually took place, that the stated treatment was of the nature the provider claims, and that they value of the service actually provided comports with the bills the provider submits,” the Coalition and NICB contend in the legal filing.

The Kentucky Supreme Court is expected to rule on the case later this year.

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CONTACT:

Dennis Jay, Coalition Against Insurance Fraud; 202-393-7333

Frank Scafidi, National Insurance Crime Bureau; 916-979-1510