Types of Paper Fraud
Paper fraud includes the situation of a vehicle being damaged at a location other than at the reported collision scene. Paper fraud includes:
- The use of vehicles previously damaged in an unrelated collision.
- An event in which no claim was made because the driver or vehicle was not covered by insurance.
Damage that is paid for as part of another claim but remain unrepaired. Repair work is then fraudulently claimed twice by an auto repair facility.
- Damage that was previously paid for as a total loss that led to the vehicle being branded as salvage.
- Intentional damage in an impact with a vehicle or object other than what was reported.
- Vehicles intentionally damaged in a way that mimics collision damage, such as with a sledgehammer.
Reported vehicles may not be driveable and often, no one is in the vehicle at the time of the alleged accident. In this example of paper fraud, a vehicle is towed to an accident scene or reporting centre, and the damage is reported as related to the collision.
Fake Injuries
In situations in which no people or vehicles are involved, fake injury claims to uninvolved people – known as jump-ins – may be reported.
Jump-ins may also be involved in staged collisions or caused collisions, when additional occupants are reported beyond the number of actual occupants involved. The purpose of jump-ins is to generate additional claims for lost wages; housekeeping, caregiving or personal care expenses; as well as for medical services.