The Facts about Hard and Soft Insurance Fraud

Fraud is a real problem for many insurances companies across the country. Statistically, fraud accounts for an $80 billion deficit across all areas of insurance, often forcing companies to hike up premiums, and that’s never good for business.The Facts about Hard and Soft Insurance Fraud

The following are the facts you should know about hard and soft insurance fraud which will help you decide what course of action to take.

There are two main types of fraud that insurance companies need to look out for when it comes to people filing claims. They are known as hard and soft insurance fraud, and they each present their own unique challenges as far as spotting and stopping them.

Hard fraud is typically the easier of the two to detect. When a person or company files an insurance claim that is 100 percent false, they are committing hard fraud. They are telling their insurance company that they suffered a hardship when, in reality, no hardship ever took place or affected them. This is usually a little bit easier for insurance companies to detect since a relatively simple investigation will uncover the truth.

Soft fraud, on the other hand, can be harder to spot and therefore harder to stop. When a person or company files an insurance claim that is valid but exaggerated, either slightly or greatly, they are committing soft fraud. The thing that makes soft fraud so difficult to deal with is that there are elements of truth to it. For example, if you report property damage, but don’t give the true value of damage lost, you are committing soft fraud.

For example, a building may have sustained damage during a storm, leading to a real need for a company to file an insurance claim. However, the damage may not have been as severe as the company claimed, and the only way an insurance company would know that is if they investigated. It can take a lot of time and resources to do this, though, so soft fraud isn’t always detected immediately.

RKJ Investigations can help insurance companies that suspect fraud. Whether you suspect hard or soft fraud, we can launch a thorough investigation and get to the bottom of what is really going on. Our fraud investigation professionals are trained to sniff out fraudulent claims and will pull out all the stops to do it, including using photographic and video evidence when possible. Call us at 405-562-6479 today to launch a fraud investigation with our help.

 

What We Can Learn from the Jeffrey Dahmer Case

Unspeakable crimes. Seedy characters. Blood and gore. These are the grisly makings of a Hollywood horror movie, and the real-life atrocities captured by the theatre of United States history. Who better suited to narrate this drama than the infamous cannibalist serial killer Jeffrey Dahmer? The case of Jeffrey Dahmer is perhaps the most famous cold… Continue Reading

Three Cases Where Digital Forensics Prevailed

Three Cases Where Digital Forensics Prevailed

Through digital forensic techniques, experts are able to recover data from a string of electronic devices, including mobile phones, laptops, home computers, and iPads. Through this careful recovery, investigators have managed to solve cases involving intellectual property theft, espionage, and more famously, murder. Here are a few of the most famous cases where digital forensics… Continue Reading

Cutting Costs? Cut Out Fraudulent Insurance Claim Payouts

Cutting Costs? Cut Out Fraudulent Insurance Claim Payouts

Insurance fraud is a growing problem across the country. It is also becoming a more diverse threat as fraudsters adopt new strategies and target additional insurance types. While overall, national fraud incidents remain difficult to fully tally, it is estimated that these costs easily amount to tens of billions of dollars each year. Are you… Continue Reading

What Is Skip Tracing?

What Is Skip Tracing?

Skip tracing is a very valuable service for those individuals and companies that are trying to track someone down. RKJ Investigations offers skip tracing services to help our clients find anyone they are looking for, regardless of how well they have tried to cover their tracks. Let’s take a closer look at what skip tracing… Continue Reading

Fact-Finding and Child Custody: How an Investigator Can Help Your Case

Fact-Finding and Child Custody: How an Investigator Can Help Your Case

The thought of no longer being able to see your children is devastating, and many child custody battles are fought bitterly and contentiously. Inevitably, these cases often result in one parent losing out on the opportunity to see their kids every day and, in some instances, altogether. Sometimes this is for the best, particularly if… Continue Reading

Announcing the Grand Opening of SpySharks!

Back in 2001, we launched RKJ Investigations in Oklahoma City, and ever since then, we have helped hundreds of clients in Oklahoma, Kansas, Arkansas and Missouri with all of their investigative needs. From performing in-depth background checks for our clients to working with attorneys on criminal and civil cases, we cover the ins and outs… Continue Reading