Insurance fraud specialists recognized

Massachusetts is honouring the industry players who’ve helped to stop insurance fraud dead in its tracks

Insurance News

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The International Association of Auto Theft Investigators recognized several Massachusetts police officers as well as members of the state’s Insurance Fraud Bureau and the Northwestern District Attorney’s Office for stopping the ringleaders of an auto insurance scheme.
 
They were collectively granted the “Insurance Investigator of the Year” award, which is given to individuals or groups who have made outstanding contributions to vehicle theft and insurance fraud investigation.
 
The scam, which has been described as the largest auto insurance fraud scheme in the history of western Massachusetts, cost the state nearly $300,000 in losses over a period of several years.
 
Last August, a New York woman plead guilty to over 100 insurance fraud charges for deceiving nearly 200 NY residents into western Massachusetts for lower auto insurance premiums. She claimed to be a translator who would help the victims get their licenses, cars, and auto insurance quotes.
 
The Insurance Fraud Bureau of Massachusetts eventually got wind of the scam, and dozens of the perpetrators were arrested and charged. Executive director Daniel Johnston said that it’s vital to handle such cases as efficiently and comprehensively as possible, since these incidents can lead to a significant increase in insurance premiums.
 
“Premiums that people pay up here are supposed to be enough to cover the claims up here, but if greater claims occur down in New York, that’s going to cause rates up to go up if those companies put them into their rate making formulas,” said Johnston.
 
Insurance fraud is considered a crime in all 50 states, with a conviction of up to 5 years in state prison.
 

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