We have all heard the horror stories about employees who scam the system and cost their employer lots of money by filing false claims and committing workers compensation fraud. But another very real issue involves dishonest business owners who scam coverage providers. And so, when insurance companies contact about insurance fraud, we move swiftly to resolve the problems. Because, for every day that a dishonest business owner gets away with this crime, everyone else is at risk, whether we’re talking about financial loss for the insurance carrier or benefit loss for innocent employees.
Crooked business owners illegally reduce the owed amounts of workman’s compensation premiums by hiding behind fake companies. This practice can be difficult to discover since the business may even provide bogus accounting and tax records. Through a business asset search, investigators are able to piece together the deception.
Investigation for this crime is tedious and may be difficult not just to expose but to also gather enough evidence for prosecution. Luckily, knows how to locate hidden assets including unknown bank accounts and even an overseas account or other offshore accounts.
Some fraudulent business owners escape paying their actual premium amounts by claiming that several employees have safer jobs. For example, the owner of an electrical contracting company might report than only two employees work in high voltage areas when the truth might be that twenty five electricians frequently come in contact with high voltage jobs.
A few shady business owners reduce their payroll by paying some employees cash. That means that accurate records are more difficult to trace regarding how many people they employ. ’ business asset search investigator is able to identify and correlate the number of employees on the payroll with the activity on site.
Some businesses don’t even bother to secure workers compensation insurance. They hope to skate past state officials. And some do, for quite awhile. This means, of course, that if a worker is legitimately injured on the job, there is no coverage for that worker’s medical expenses and lost wages.
If your company suspects insurance fraud of any sort, trust to help you reduce your losses and hold dishonest people accountable for their actions.
-Brenda McGinley, CEO, All in Investigations, All in Investigations
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