Left Navigation

Fraud Parties

A complex auto insurance scam that involves multiple people is known as a fraud party. In this situation, an organized criminal group applies business principles to plan a highly sophisticated insurance fraud scheme.

Who is Involved in Premeditated Fraud?

A criminal group that has ownership or an interest in multiple areas of the automotive supply chain can make fake claims and profit in areas such as:

Recruitment. A recruiter sets up a staged collision and recruits people to participate as drivers or passengers.
Drivers and passengers. They submit reports to authorities and insurers about an alleged incident. As well, the drivers and passengers submit claims to insurers for alleged injuries and damages.
Auto businesses. A business owner purchases vehicles or salvage to be used in a staged collision.
Towing operations. A tow-truck driver delivers a damaged vehicle to the scene of a staged accident and bills for storing or moving the vehicle to a collision reporting centre and/or body shop.
Auto repair facilities. A repair shop owner bills for repairs that were not completed, creates additional damage to increase repair charges and/or bills for unnecessary storage.
Legal representative firms. A firm submits false documents to insurance companies.
Medical services. False billings for treatments, assessments and/or assistive devices are among the activities related to medical services fraud.
Employers. An employer confirms false employment to support claims for lost income.
Service providers. This area includes claims for services – such as housekeeping, care of dependents and personal care – that have not been provided.