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According to the National Insurance Crime Bureau, fraud is the second-most-costly white-collar crime in America after tax evasion. Why should you care? Fraud causes higher insurance premiums for all of us and raises our taxes while inflating the prices on consumer goods.

 So how do we prevent fraud from occurring at all? Georgia Farm Bureau in connection with the NICB is committed to educating the public on ways you can prevent becoming a victim of fraud.

 Disaster Fraud

Unfortunately, natural disasters become fertile ground for fraudsters. At a time when disaster victims are most vulnerable fraudsters prey on their devastation and act like concerned contractors. 

Salespeople often go door-to-door in damaged neighborhoods offering cleanup or repair services, while some of these are honest companies, the dishonest ones may pocket your payment or insurance settlement without completing the job.  

Follow these tips to prevent becoming a victim of contractor fraud.

1. Be on alert for contractors that try to rush you, especially on non-emergency or temporary repairs.
2. Do your research on contractors in the area, ask for recommendations from family or friends and be cautious of anyone knocking on your door offering unsolicited repairs to your home.
3. Never pay for work up front. Inspect the work and make sure your satisfied with the results prior to paying the contractor in full. Make sure you also have a written contract before any money is exchanged.
4. Get three written estimates from three different companies before choosing a contractor.
5. Don’t believe a contractor who says they’re supported by the government; FEMA does not endorse individual contractors or loan companies.
6. Do not pay in cash, use a check or credit card, this creates a record of your payments to the contractor.

Medical Fraud

Have you ever been involved in a car accident and almost immediately started receiving calls urging you to seek medical treatment from a certain doctor or to seek advice from a certain legal representative? If so, you may be a target for medical fraud.

Follow these tips to prevent becoming a victim of medical fraud.

1. Be cautious of individuals that recommend specific attorneys or doctors. Often times they receive compensation for referrals. If an attorney refers you to a specific doctor, be wary, this is a common sign of a medical mill operation.
2. Don’t be talked into an injury, before seeking medical treatment or legal counsel do your research.
3. Maintain records of your office visits and treatments.
4. Ask for an itemized medical bill from your medical provider.
5. Ensure all medical history is accurate.

Staged Auto Accident Fraud

Did you know that fraudulent automobile accidents occur frequently in urban areas where there is a greater volume of vehicles, and also in wealthier communities because fraudsters assume drivers in these areas have better insurance coverage. These criminals often target new, rental, or commercial vehicles because they assume they’re well-insured. There’s also evidence that suggests these fraudsters prey more on women driving alone and senior citizens as they’re perceived to be less confrontational at accident schemes.

 Follow these tips to prevent becoming a victim of auto accident fraud.

1. Avoid tailgating.
2. Call the police to the accident scene and make sure to obtain a police report with the officer’s name.
3. Document any accident damage and the number of passengers in the other vehicles with your phone.
4. Avoid people who suddenly appear at an accident scene and try to direct you to doctors or attorneys. They’re commonly referred to as “runners and “cappers”
5. Be wary of a physician who insists you file a personal injury claim after an accident, especially if you are not hurt.
6. Steer clear of tow trucks that arrive on the scene without anyone having called for service.

Fraud when Purchasing a Vehicle

When buying a vehicle don’t get “taken for a ride”.

Follow these tips to prevent becoming a victim of fraud when purchasing a vehicle.

1. Use the free VINCheck service offered by the National Insurance Crime Bureau to determine if a vehicle has been reported stolen, but not recovered or has been reported as a salvage vehicle.
2. Beware of “cloned” vehicles. Criminals can copy a VIN from a legally owned and documented vehicle sitting in a parking lot, on the street or at a vehicle dealership. The copied VIN is used to create counterfeit tags for a lookalike vehicle, then thieves travel across state lines to sell the car at high prices.
3. Be careful about purchasing a vehicle from someone you don’t know who is running an online ad and using a cell phone number.
4. Always check the vehicles VIN with appropriate government agencies or your state bureau of motor vehicles.
5. Check for rust on screws in the console or areas where water normally wouldn’t reach.
6. Look under the hood for signs of oxidation. Pull back the rubber “boots” around electrical and mechanical connections for these indicators.