In line with the celebration of Fraud Prevention Month this March, Saskatchewan Government Insurance (SGI) has shared its list of 2017’s top five insurance fraud schemes.
SGI shared the fraud cases on its website to serve as a reminder and warning to customers that insurance fraud is a problem that costs both the insurance industry and customers millions of dollars every year.
“Unfortunately, property and automobile insurance fraud is still a reality for every insurance company,” said SGI Auto Fund executive vice-president and chief operating officer Penny McCune. “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 neighbours.”
The five insurance fraud cases were showcased in no particular order.
In the first case, a theft claim was made under a property policy for several luxury items, which included clothing, computer equipment, and jewelry. Although the fraudster was able to produce receipts to show the value of the items, one receipt in particular appeared suspicious.
That suspicious receipt was for a diamond ring; the details on the document appeared correct, save for the postal code information. Instead of a number code, a placeholder line that read “ZIP CODE” was printed on the space. Through the error, an investigator with SGI discovered that the receipt was fabricated with the use of an online receipt generator – because the site was American, it could not accept six-character Canadian postal codes. The case was closed, saving SGI $25,000.
In the next case, a vehicle owner claimed someone hit her parked vehicle and took off. SGI investigators, however, downloaded information from the car’s Event Data Recorder (EDR) and found that not only was the vehicle moving at the time of the collision, but the incident occurred on a completely different day than the owner had claimed.
The car owner retracted her claim after being presented with the findings, saving the insurer over $8,000.
Another vehicle owner is featured in the next fraud case, but this time, he is foiled by a local business’s video surveillance system.
The driver claimed his vehicle was stolen and then later found damaged near a local business. Using footage of a nearby security camera the business had, investigators found that, during the night of the supposed theft, the owner himself was driving the already-damaged vehicle and parking it at the spot he claimed it was found in.
SGI denied the driver’s claim, saving the insurer $14,000. The motorist is facing criminal charges.
Yet another vehicle owner made the list, for a car that suddenly went up in flames.
While the owner claimed he had no idea who would vandalize his vehicle, his neighbor’s security camera footage revealed that a suspicious individual approached the vehicle and tinkered under the hood for a few moments before a fire erupted. Further investigation connected the vehicle owner to the fire.
The claim was denied, saving SGI $8,000. The vehicle owner is facing criminal charges.
In the last case, a logging truck broke down on the side of a highway in Northern Saskatchewan. The owner claimed that they returned later to the truck to have it towed, only to find it completely burnt.
SGI received an anonymous tip that the owner had intentionally caused the fire. The remains of the vehicle were examined and investigators found clear evidence that the fire was intentionally caused. A later investigation connected the owner and the scam.
The tip helped expose a $60,000 fraud, and it led to the owner being charged criminally.
