It might seem hard to believe, but even areas that are suffering are not immune to fraudsters and scam artists. In fact, these areas seem to draw them in like crazy. In Oklahoma, where the tornadoes and disasters touched down with regularity over the past few months, the scam artists are already trying to take advantage of insurance and government programs. The tornado outbreak started around May 19 and the anti-fraud units in Oklahoma have been on high alert. In fact, officials from North Carolina have come in to aid in the fight as well.
The fraud is multifaceted and includes fraud of the victims, fraud of the system and insurance fraud to name a few. Tornado victims are being counseled to teach them what to look out for, but it seems inevitable that there will be victims that were victims to start with. How someone can victimize people that have been through so much is hard to understand.
The other part of policing the situation includes Continue reading Oklahoma Disaster Officials Are Now Fighting Off Fraud
When you think of fraud, you generally think about some scum hiding behind a keyboard somewhere in a dark basement. The last thing that would come to mind would be your insurance company. State Farm Insurance has been charged with fraud in a case out of Mississippi. In the wake of horrible Hurricane Katrina, State Farm is accused of burying, modifying and hiding damage reports to keep from having to pay.
The whole idea of insurance in a hurricane becomes difficult to sort through. The general idea is that an insurance company is often on the hook for wind damage whereas the water damage is paid out federally. In this case, the National Flood Insurance Program was to be reimbursed a quarter of a million dollars due to the accused fraud.
How tough must that be? How in the world do you separate wind and water damage in a storm the size of Katrina? Some houses were blown away while others were ripped from their foundations by rising tide waters. The insurance companies had plenty of motives to aim the destruction towards the waters. They knew they were facing huge debts regardless so a culture of deception is not really all that surprising. In a world where looters take advantage of people whose homes are devastated, nothing really surprises us anymore.
It was first brought to light in 06 when ABC News spoke with two sisters that accused the company of an entire culture of fraud around the locations in Biloxi and Gulfport. They accused Continue reading State Farm Charged in Hurricane Katrina Claim Fraud Case