For most people, they think that insurance fraud is insurance fraud anyway you look at it. However, both insurance companies and insurance investigators know that fraud comes in two forms – hard and soft. These two forms, while similar in the crime that is committed, often require very different investigation techniques in order to catch the fraudulent party and prove their crime.
Soft Insurance Fraud
This type of insurance fraud is the most common kind, but often not always the first thing that comes to a person’s mind when they think about insurance fraud. Soft fraud is committed in the moment by people who see an opportunity in their otherwise legitimate claim. An example of soft insurance fraud is getting into a car crash and claiming that your injuries were worse than they actually were in order to get a bigger settlement.
However, soft fraud is typically easier to investigate and easier to prove. Most people who try to commit it don’t plan for every type of contingency. They don’t know that most upstanding doctors won’t lie about their injuries or that insurance companies often ask for proof of things that were stolen or broken. When fraud is committed when an opportunity presents itself, there is very little time for planning and that makes it very hard to keep the lie going.
Hard Insurance Fraud
Conversely, hard insurance fraud is premeditated and deliberate. This is what many people think of when they think of those who commit fraud. However, it is actually the rarer form of insurance fraud. In those who commit hard fraud, individuals often plan it out for months. They may see stores that don’t put slippery when wet signs up when they mop or burn down their business claiming arson for the insurance.
These claims take an extensive amount of planning to pull off properly, but it is not often that the fraudulent individual is good enough to fool investigators. The problem with planning insurance fraud is that there is often a paper trail, particularly a digital paper trail, which will suggest that they have been planning fraud. Furthermore, easily found records like that of a poor financial history or several previous claims with other insurance companies are particularly suspicious.
To learn more about insurance fraud and how it is investigated, contact us today. Due Process Legal Support & Investigations, LLC is dedicated to not only investigating fraud in all forms, but educating the next generation of private investigators and the public on how we work to prevent it.