Tag: fraud

Florida Crime Prevention and Training Institute – Home Page #florida, #attorney #general, #mortgage, #fraud,


Welcome to the Florida Crime Prevention Training Institute (FCPTI) website. This website contains innovative educational opportunities for crime prevention and community oriented policing strategies for officers and citizens; as well as, professional development courses for advocates, officers and victim service providers.

FCPTI has provided quality training since its establishment in 1982 and will continue its highly successful Florida Practitioner Designation Programs in the following fields; Crime Prevention, Crime Prevention Through Environmental Design, Elder Crime, School Resource Officer and Victim Services.

You and members of your organization are cordially invited to attend these excellent courses, and I look forward to working with you in our efforts to reduce crime while also assisting crime victims in our communities.

What others are saying about our Training:

“I have attended several classes with FCPTI. Most for crime prevention and the others for victim advocacy. Overall we have had great instructors and the location were very good. I really enjoyed this class and can’t wait to get back to share the art programs & new urbanism with Chief Baker.”

Gretchen Lorenzo, Fort Myers PD

F.A.S.R.O Annual Training Conference

FASRO 2017 Annual Training Conference
Lake Buena Vista Palace
July 9-14, 2017 in Orlando, Florida

For more information and to register visit:

FLDOCA Meeting
Santa Fe College NW Campus
April 21, 2017 in Gainesville, Florida

For more information and to register visit:

48th Annual Crime Prevention Conference
Hyatt Sarasota
October 23-27, 2017 in Sarasota, Florida

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Secure email delivery #appraise, #appraiser, #appraisal, #appraisalport, #appraiser #network, #appraiser #listings, #residential, #collateral, #cms,




More Business. Less Work.

AppraisalPort connects you to lenders

And to others who engage in real estate appraisal services. Once you are connected, AppraisalPort provides tools to build your reports quickly, accurately, and deliver them straight to your client. Learn more about AppraisalPort

Secure communication with your clients

AppraisalPort is a secure, Web-based work site from which appraisers can receive orders, send completed reports, and communicate with their clients. It is integrated with FNC’s Collateral Management System®, used by many mortgage lenders, banks, and appraisal management companies. Read more AppraisalPort® FAQs

AI Ready™

New order information is auto-populated into your forms software package if you use AI Ready software. This helps to eliminate typos and reduce time spent re-keying information. Read more about AI Ready

  • “Appraisal Port is an intuitive and easy to use platform.
    It is an efficient way for us to interact with our clients while
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    essential tool for managing our business.”

– Kevin Allin, San Diego, California

  • “Simple log-in, automatic report acceptance and seamless
    integrated delivery system maximize my clients’ and my time. In
    addition, regular polls and newsletters enhance the
    sense of belonging to a community of appraisers.”

    – Susan Bender-McGoldrick, Lexington, VA.

  • “It’s nice that we can upload quickly and easily.
    It’s convenient to have all of our clients organized on
    one site and makes it very efficient to receive orders.”

    – Beverly Pogue, Bethesda, Maryland

  • “AppraisalPort provides the convenience of auto accepts and
    receiving of orders, and the communication you receive on each one.
    The GAAR option is great for checks and balances, and the rules can
    fire back quickly and reject the report back to
    appraisers to correct the fired rule.”

    – Norma Lorence, Williamston, Michigan

  • “As an appraiser, I am able to post messages and
    communicate 24/7. This has helped eliminate unnecessary phone calls
    and callbacks which tend to grind up time. My productivity
    has increased 25% since I can communicate using AppraisalPort.”

    – Judy DeLeon, Bowie, Maryland

  • “Castle Associates, Inc. strongly endorses AppraisalPort as an
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    appraisal firm in the Las Vegas Valley.”

    – Aaron Alyea, Las Vegas, Nevada

  • “The structure of AppraisalPort allows for the
    fastest turn times with the highest efficiency. The website is
    reliable and simple to use. AppraisalPort is the premier
    name in appraisal servicing.”

    – Aaron Alyea, Las Vegas, Nevada

  • “Appraisal Associates has had such success
    with the system, it works beautifully, there is no lender pressure,
    and we are freed up to do the job. I have increased
    my production by 30%.”

    – L. Michael Gandy, Las Vegas, Nevada

  • “Your staff always handles any problem that
    comes my way in a courteous manner; they seem to understand how
    difficult and challenging appraising can be. I would like to thank you
    for the opportunity you have given Appraisal Associates.”

    -L. Michael Gandy, Las Vegas, Nevada

  • “I love that it is so easy to add new clients through AppraisalPort.
    Just a couple of clicks and we are connected.”

    – Clint Bruce, San Diego, California

  • “I’ve used several appraisal ordering companies
    over the years but when a lender asks me which one I prefer
    and recommend I always tell them AppraisalPort.
    Quick, easy to use, and reasonable fees.”

    – Clint Bruce, San Diego, California

  • “The few times I’ve had a problem; the customer
    service department has gotten back to me quickly and
    always resolved the issue. I wish all companies were
    as caring and quick to respond.”

    – Clint Bruce, San Diego, California

    Are you sure you don’t want to share your profile?

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  • Simple Ways to Avoid Credit Card Fraud #how #to #prevent #debit #card #fraud


    Simple Ways to Avoid Credit Card Fraud

    Be safe with your credit card online.

    Don t click on email links from anyone that looks like your bank, credit card company, or other business who uses your personal information, even if the email looks legitimate. These links are often phishing scams and the scammers want to trick you into entering your login information on their fake website. Instead, go directly to that business s website to logon to your account.

    Make sure you re cautious when you re using your credit card online. Only enter your credit card number on secure websites that you can be 100% sure are legitimate. To be sure a website is secure, look for https:// in the address bar and lock in the lower right corner of your internet browser. Taking these extra steps will help you avoid credit card fraud.

    Report lost or stolen credit cards immediately.

    The sooner you report a missing credit card the sooner your credit card issuer can cancel your credit card and prevent fraudulent charges. Reporting your lost or stolen credit card as soon as possible lowers the likelihood that you ll have to pay for any fraudulent charges made on your credit card. Write down your credit card companies customer service number now so you ll have them if your credit cards are ever missing.

    Continue to 7 of 9 below.

    Review your billing statements each month.

    Unauthorized charges on your credit card are the first sign of credit card fraud. If you notice a charge you didn t make, no matter how small, report the charge to your credit card issuer immediately. Your credit card issuer will tell you whether you should close your account and get a new account number to avoid credit card fraud.

    Make strong passwords and keep them safe.

    Your credit card number may be stored in a number of places online. For example, you may save your credit card on Amazon so you can make one-click purchases. Make sure you use strong passwords – a combination of upper- and lower-case characters, numbers, and even characters – and avoid writing or sharing your password.

    Continue to 9 of 9 below.

    Check gas stations and ATMs for credit card skimmers.

    Credit card thieves sometimes place credit card skimming devices onto the credit card readers at gas pumps or ATMs. These skimmers capture and store your credit card information and credit card thieves come back later to get the device. Skimmers are placed over the regular credit card swipe, so if anything looks off about the place you re swiping your credit card, go to another gas station or ATM.

    What to Do If Your Credit Card Information is Stolen

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    Medicare Fraud Reporting Center – Report Medicare Fraud Here #medicare #whistleblower, #medicare #fraud


    Help stop the waste and abuse of Medicare by becoming a Medicare whistleblower.

    Medicare Whistleblowers are typically healthcare professionals who are aware of hospitals, clinics, pharmacies, Nursing Homes, Hospices, long term care and other health care facilities that routinely overcharge or seek reimbursement from government programs for medical services not rendered, drugs not used, beds not slept in and ambulance rides not taken. If you have information about a person or a company that is cheating the Medicare program (or any other government run healthcare program), you may be able to collect a large financial reward for reporting it here.

    Common types of Medicare fraud include:

    • Hospice care centers overbilling for patients stays and care.
    • Rehabilitation centers systematically inflating rehab bills.
    • Durable medical equipment fraud: kickbacks schemes in medical sales of items such as bedding and wheelchairs.
    • Nursing home overbilling of staff time and patient care.
    • Assisted living center fraud.
    • Medical coding: alteration of medical codes for different procedures and diagnosis.
    • Ambulance service fraud: billing for rides not authorized by Medicare.

      Healthcare professionals that report Medicare fraud may be entitled to receive a significant financial reward for coming forward to us with their information.

      Becoming a Medicare whistleblower

      Recent changes to US whistleblower laws allow healthcare professionals to collect a significant financial reward (often millions of dollars) for reporting fraud against the government in the healthcare industry. US laws now allow individuals reporting Medicare fraud to receive full protection from retaliation and collect up to 30% of the fines that the government collects.

      Report Medicare fraud here.

      Help stop government waste and abuse, and get rewarded for your efforts. Our attorneys have significant experience representing healthcare industry whisteblowers. Complete the secure form on this page or call 1-800-581-1790 for a free no obligation consultation with a lawyer.

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      Reporting tax fraud to irs #reporting #tax #fraud #to #irs



      Preparer Question

      IRS Answer

      Many married couples split their qualifying children and both file as head of household to reap the benefits of EITC. Does the IRS have a system in place to catch these and other fraudulent returns ?

      Yes, IRS reviews EITC returns filed to identify returns with errors or misinformation. IRS uses both internal information and information from external sources such as other government agencies. The information on the return is matched with information already on file with the IRS and other government agencies. If the review shows questionable or incomplete information, the IRS holds the EITC portion of the taxpayer’s refund and contacts the taxpayer to verify the information. IRS releases the EITC amount after the claim is verified.

      EITC also uses a screening process based on historical information to select returns for examination. At this time, IRS identifies many errors and examines returns both pre and post refund. However, IRS does not have the resources to examine all of the questionable EITC returns.

      Sometimes during the interview process, the preparer is aware the taxpayer is not giving the right information or is changing the story to get EITC. The preparer refuses to file an inaccurate return and the taxpayer leaves the office. What steps should the preparer take to notify the IRS of the likelihood of fraud or abuse?

      If you suspect or know of an individual or company that is not complying with the tax laws, you may report this activity by completing Form 3949-A. You may fill out Form 3949-A online, print it and mail it to:

      Internal Revenue Service

      Fresno, CA 93888

      If you do not wish to use Form 3949-A, you may send a letter to the address above. Please include as much of the following information you have:

      • Name and address of the person you are reporting.
      • The taxpayer identification number (social security number for an individual or employer identification number for a business).
      • A brief description of the alleged violation, including how you became aware of or obtained the information.
      • The years involved.
      • The estimated dollar amount of any unreported income.
      • Your name, address and daytime telephone number.

      You are not required to identify yourself but it is helpful if you do. Your identity can be kept confidential and you may also be entitled to a reward. To be considered for a reward, file Form 211. Application for Reward for Original Information.

      I am a tax preparer and am wondering what to do when clients seem to know all the right answers to the questions we are asking. Sometimes it is difficult to know if the story is fabricated or not.

      If you find the information provided by the client appears incomplete, inconsistent or incorrect, you should ask additional questions, document the answers and make a judgment as to whether the answers make sense. If they don’t, you have a responsibility to ask more questions and possibly ask for documentation until you are confident the return you are preparing is accurate. You must also use professional judgment regarding the credibility of your client and the answers you receive. If you are not comfortable with the answers or credibility of the client, then due diligence dictates you refuse to prepare the return.

      You can also let you client know the consequences of filing an inaccurate return. You may want to present your client with the new Publication 4717, Help Your Tax Preparer get You the EITC You Deserve. This publication explains preparer’s due diligence requirements and the consequences of not filing an accurate return

      What do I do if I refuse to prepare an EITC claim as the customer wants and I know the individual goes to a preparer down the street that is not as scrupulous?

      What does the IRS do to stop bad preparers ?

      IRS has a Return Preparer Strategy that includes outreach and compliance activities. Outreach includes educational materials to ensure preparers have complete and current information about EITC eligibility, filing requirements and their EITC due diligence requirements. In addition, the IRS has two educational programs that are primarily outreach opportunities: First Time Paid Preparer Program and the Knock and Talk Visit Program.

      IRS conducts compliance activities with preparers who have a significant numbers of questionable EITC returns. Depending on the circumstances of each case, the IRS may take the following actions to correct the situation:

      • Audits of paid preparers for compliance with EITC Due Diligence requirements and assessment of penalties under IRC § 6695(g) Assessment of other return preparer penalties
      • Disciplinary action by the IRS Office of Professional Responsibility,
      • Suspension or expulsion from participation in IRS e-file program
      • Referral for criminal investigation
      • Injunction to bar the preparer from preparing tax returns.

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      3 Ways to Prevent Credit Card Fraud #preventing #credit #card #fraud


      How to Prevent Credit Card Fraud

      Credit card fraud can happen in a lot of different ways, but most of them are preventable if you follow a few basic steps to keep your physical cards safe as well as your personal information. You have significant rights as a credit card holder, and credit card companies offer the greatest fraud protection available – but you must take action to keep your information safe, and exercise your rights as soon as possible if you suspect unauthorized activity.

      Steps Edit

      Method One of Three:
      Protecting Your Card Edit

      Keep your cards in a safe location. Treat your credit cards the same as you would cash, and make sure you know where they are at all times.

      • You might also try carrying your cards separately from your wallet. That way if your wallet is stolen the thief doesn’t have everything. [1]

      Alert your credit card company immediately if your card is lost or stolen. After you report your card lost or stolen, federal law states you no longer have any liability for further charges you didn’t make.

      • Typically the company will cancel your card as soon as you report it; however, the credit card company legally can only hold you responsible for a maximum of $50 for each card that’s lost or stolen, regardless of when you report it.
      • Most credit card companies have automated lines that are available 24 hours a day, seven days a week for reporting a lost or stolen card. [2]
      • If you’re notified of a data security breach at a store where you’ve used your card, contact your credit card company and demand a replacement card be issued immediately. [3]
      • If your wallet is stolen, you should also contact local law enforcement and any other related companies or agencies. For example, if you had your health insurance card in your wallet, you should notify your health insurance company that your card was stolen so it can be replaced. [4]

      Leave your cards at home if you’re not going to be using them. Especially if you’re going on an extended trip, leaving cards you don’t need at home substantially decreases the odds of them being lost or stolen.

      • Don’t take anything with you that you don’t need. For example, if you’re going to the grocery store, bring along whatever method of payment you intend to use to buy your groceries. There’s no need to bring your store card for a clothing retailer. [5]

      Notify your credit card company if you will be traveling overseas or far away, or if you are moving. Many credit card companies automatically block cards if suspicious activity occurs, which could include transactions in a place you didn’t frequent before.

      Insist clerks check your signature and photo ID when you make credit card purchases. Checking ID allows the clerk to compare your signature on the receipt to your signature on your driver’s license, as well as checking the name and photo. [6]

      Keep your eye on your card during transactions. Don’t walk away or turn your back on a clerk or other employee who has your card in her hand.

      • If a clerk has a problem with the transaction, make sure she returns your card to you before she walks away. [7]
      • Never sign a blank receipt, and mark through any blank lines or spaces before you sign so nothing else can be added to your total after you’ve signed. [8]

      Leave your Social Security card at home. Since your birthdate and your Social Security number are the key pieces of information used to start a new account or access an existing one, never carry your Social Security card in your wallet.

      • This includes other identifying documents such as your voter registration card or your birth certificate as well. Keep these documents locked up in a safe place – you don’t need to carry them with you. [17]

      Avoid revealing personal information such as your Social Security number or your birthdate unless you initiated the communication. No one who contacts you needs this information. If someone claims to be from a company with which you already do business, contact the company yourself directly to confirm whether the communication was from them.

      Be wary of over-sharing on social networking sites or elsewhere online. Keep your personal information private, and avoid signing up on websites that ask for more information than is strictly required to open up your account.

      • For example, if a blog wants your name, address, birthdate, and Social Security number just to send you a weekly newsletter, it might be using your information for more than just a mailing list. [18]

      Review your credit report regularly. Your identifying information also can be used to open up new credit accounts in your name, so you should review your reports regularly and dispute any unauthorized activity. [19]

      • If your card or account information is compromised in a store hack or data breach, you can use a security freeze to lock down your credit report. If the hacker tries to apply for a new loan or credit card, the would-be lender won’t be able to see your report, which means they probably won’t open a new line of credit. [20]

      Shred all documents that contain personal information. Destroy anything with personal information on it before you throw it away, even if it only contains your name and address. You don’t want to give would-be identity thieves even a small piece of the puzzle.

      Report phishing scams immediately. Any unsolicited communication could be a possible phishing attempt from thieves attempting to commit fraud.

      • If you have any questions at all, contact your bank or credit card company directly using the customer service number on the back of your card.

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      Report fraud #insurance #fraud, #schemes, #scams, #scam #alerts, #fraud #information


      Report fraud

      Fraud bureau

      Contact your state fraud bureau with your fraud tip. Most states have fraud bureaus. Some deal with multiple kinds of insurance fraud, and others deal specifically with workers compensation or automobile scams. Confirm if your state has a fraud bureau. Some states even reward whistleblowers if there’s a conviction.

      Insurance company

      Contact the insurance company you think was defrauded. Some insurers sponsor tollfree hotlines. Call or write if the insurer doesn’t have a hotline.

      National Insurance Crime Bureau

      NICB investigates insurance crimes involving property and casualty insurance, including auto and home insurance, liability insurance, and workers compensation.

      • Call tollfree. TEL-NICB (1-800-835-6422 — Monday-Friday, 7 a.m.-8 p.m. CST) or.
      • Click here to report scams online or via mobile device.


      • Call tollfree. 1-800-MEDICARE to report scams against this federal health program for seniors.
      • Click here for more information.


      • Call tollfree. 1-800-HHS-TIPS (1-800-447-8477) to report fraud against this federal healthcare program for the poor.
      • Click here for more information.


      Click here to report fraud, waste or abuse against the federal health-insurance program for the military and their families

      National Flood Insurance Program

      • Call tollfree. 1-800-323-8603 (24-7) or.
      • Fax: 202-254-4292 or.
      • Mail: Office of Inspector General/MAIL STOP 0305, Department of Homeland Security, 245 Murray Drive SW, Building 410, Washington, D.C. 20528.
      • Click here for more info.

      Federal crop insurance program

      • Call tollfree. 1-800-424-9121, Monday-Friday 8 a.m.-4 p.m. (EST) or.
      • Write: Office of Inspector General, P.O. Box 23399, Washington, D.C. 20026. Include as much detail as you can. Let them know if you wish to remain confidential if you sign your name.
      • Click here for more info.

      Reporting medical providers

      Report suspected medical swindles to your state medical board or chiropractic board in addition to criminal authorities. These boards oversee medical providers within their states.


      • Call tollfree. 1-800-318-2596 to report scams involving health policies sold under the Affordable Care Act.
      • Click here for more info.

      Be Prepared

      Include as much information as possible. This will increase your complaint’s chances of being acted upon.

      • Full details of the suspected scam;
      • Dates, names;
      • Organizations involved, including phone numbers, addresses, emails, URLs (if relevant);
      • Insurance company or insurers that were defrauded or did the defrauding (if relevant);
      • Amount of money you think was lost;
      • Documents and other written material; and
      • Other information you think is helpful.

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      Identity Theft Protection, Fraud Prevention – Identity Theft Resource #identity #theft #protection, #identity #fraud


      Copyright 2017 IdentityHawk

      The articles and information available are for educational and reference purposes only. They do not constitute, and should not be construed as, legal or financial advice. Any legal or financial principles discussed here are for general information purposes only and may differ substantially in individual situations and/or in different states or countries. For specific legal or financial advice, please consult a licensed attorney or a financial professional. IdentityHawk does not control or guarantee the accuracy of any information provided through external links from the articles on this website to any other website, nor does the IdentityHawk privacy policy apply to any personal information that may be collected via the external links.

      *Identity theft insurance underwritten by subsidiaries or affiliates of Chartis Inc. The description herein is a summary and intended for informational purposes only and does not include all terms, conditions and exclusions of the policies described. Please refer to the actual policies for terms, conditions, and exclusions of coverage. Coverage may not be available in all jurisdictions. View the summary of your benefits. If you cancel your membership in the first 30 days, the insurance coverage will be cancelled as of your original membership start date.

      Coverage for residents of New York is limited to a $25,000 maximum. New York residents: view the summary of your benefits .

      IdentityHawk provides you with the tools you need to access and monitor your financial/credit information through the program’s credit reporting and monitoring benefits. IdentityHawk provides only limited credit monitoring services which are accessible to its members via the identityhawk.com website. IdentityHawk is not accepting new customers. Credit information provided by TransUnion Interactive, Inc.

      Four Things You Need to Know About Identity Theft

      Identity theft continues to plague U.S. citizens across all income levels, genders, races, ages, and occupations. While the continued rise in incidents has led to greater consumer interest in identity theft prevention and protection measures, identity thieves still manage to find new ways to uncover personal information and use it to their advantage and their victims detriment.

      The most recent statistics from Javelin Strategy Research indicate that more than 11 million American consumers were victimized by identity fraud in 2009, an increase of more than one million people from 2008.* Essentially, one out of every 27 people in this country in 2009 had their personal information used by others to engage in fraudulent transactions or to receive services illegally and that rate shows no signs of abating.

      Here are four things you need to know about identity theft and identity fraud:

      1. Identity theft is a stepping-stone to identity fraud. Identity theft occurs when someone gains unauthorized access to someone else s personal information. Here are just a few ways in which someone s personal data can wind up in the hands of an identity thief:
        • A thief steals a victim s wallet or purse.
        • A thief copies a consumer s credit card while ringing up a transaction.
        • A thief hacks into a corporate or institutional database and steals information about multiple people or accounts.
        • A victim is duped into entering information into a fake website or responding to a phishing e-mail.
        • A laptop computer containing personally identifying information is left unprotected in a public area.

      Identity fraud occurs when that stolen information is used to benefit the thief in some way. The thief may:

      • Make unauthorized charges to the victim s credit card account;
      • Drain funds from the victim s bank account;
      • Use the victim s Social Security number to open new accounts in the victim s name;
      • Use the victim s information to receive healthcare or other services in the victim s name; or
      • Take advantage of the victim s information in a variety of other ways.

      Once a thief has a victim s information, the victim can face a long and difficult struggle, not only to catch the thief but also to restore the victim s identity to its pre-theft status. That s why it s so important to implement identity theft prevention and protection measures before a theft occurs.

      Identity theft can victimize anyone. Legend has it that Willie Sutton, a famous bank robber in the first half of the 20th century, was once asked why he robbed banks. Because that s where the money is, he was reported to reply.

      Identity thieves in the 21st century often follow the same logic. In addition to targeting gullible marks through phishing e-mails and pharming websites, identity thieves go after the big fish celebrities and other public figures who presumably have money to burn, including (but not limited to) Oprah Winfrey, Martha Stewart, Warren Buffet, Michael Bloomberg and others.

      Clearly, the ability to amass a lot of money and/or attention offers no protection against identity theft.

    • Most identity theft crimes are committed by someone the victim knows. It s difficult to prevent identity theft when a parent can access a child s (or spouse s) Social Security number and use it to create fake accounts.
    • Early detection of identity theft leads to better outcomes. The sooner you can detect and respond to the warning signs of identity theft, the more likely you are to protect your assets and your name. While the zero-liability fraud protections instituted by most credit card issuers have reduced the number of people paying out-of-pocket for identity fraud, the average out-of-pocket cost for those who do pay something is $373, and it takes the average victim 21 hours to resolve the identity theft issue.*
    • The Federal Trade Commission urges consumers to monitor their financial accounts. because the best identity theft protection measure is early detection.

      However, credit monitoring can t catch all of the warning signs of identity theft. For even stronger identity theft/fraud prevention and protection, consumers should strongly consider an identity theft protection program that tracks a much wider range of their personal data, including names, addresses, Social Security numbers, phone numbers, affiliations, and more.

      * 2010 Identity Fraud Survey Report: Consumer Version, Javelin Strategy Research, February 2010

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      Insurance Fraud – FBI #insurance #fraud #florida


      Insurance Fraud

      Insurance Fraud

      A Basic Overview

      The insurance industry consists of more than 7,000 companies that collect over $1 trillion in premiums each year. The massive size of the industry contributes significantly to the cost of insurance fraud by providing more opportunities and bigger incentives for committing illegal activities.

      The total cost of insurance fraud (non-health insurance) is estimated to be more than $40 billion per year. That means Insurance Fraud costs the average U.S. family between $400 and $700 per year in the form of increased premiums.

      • Premium diversion is the embezzlement of insurance premiums.
      • It is the most common type of insurance fraud.
      • Generally, an insurance agent fails to send premiums to the underwriter and instead keeps the money for personal use.
      • Another common premium diversion scheme involves selling insurance without a license, collecting premiums and then not paying claims.
      • In fee churning, a series of intermediaries take commissions through reinsurance agreements.
      • The initial premium is reduced by repeated commissions until there is no longer money to pay claims.
      • The company left to pay the claims is often a business the conspirators have set up to fail.
      • When viewed alone, each transaction appears to be legitimate only after the cumulative effect is considered does fraud emerge.
      • Asset diversion is the theft of insurance company assets.
      • It occurs almost exclusively in the context of an acquisition or merger of an existing insurance company.
      • Asset diversion often involves acquiring control of an insurance company with borrowed funds. After making the purchase, the subject uses the assets of the acquired company to pay off the debt. The remaining assets can then be diverted to the subject.

      Workers Compensation Fraud

      • Some entities purport to provide workers compensation insurance at a reduced cost and then misappropriate premium funds without ever providing insurance.

      Scam Spotlight Disaster-Related Fraud: Hurricane Katrina

      Massive Storm, Massive Cost

      • In late August 2005, Hurricane Katrina made landfall along America s Gulf Coast.
      • The storm caused approximately $100 billion in economic damages.
      • Approximately 1.6 million insurance claims were filed, totaling $34.4 billion in insured losses.
      • Of the $80 billion in government funding appropriated for reconstruction, it is estimated that Insurance Fraud may have accounted for as much as $6 billion.

      Disaster Fraud Schemes

      • False or exaggerated claims by policyholders.
      • Misclassification of flood damage as wind, fire, or theft.
      • Claims filed by individuals residing hundreds of miles outside the disaster-zone.
      • Bid-rigging by contractors, falsely inflating the cost of repairs.
      • Contractors requiring upfront payment for services, then failing to perform the agreed upon repairs.
      • Charity fraud scams designed to misappropriate funds donated for disaster relief.

      The Government Response

      • On September 8, 2005, the Attorney General created the Hurricane Katrina Fraud Task Force (HKTF).
      • The HKTF was designed to deter, investigate, and prosecute disaster-related federal crimes.
      • The HKTF has a zero-tolerance policy for fraud related to Hurricane Katrina.
      • In one Katrina-Related fraud case alone, the FBI received more than 70 indictments and over 60 guilty pleas (as of March 2007).

      Insurance Fraud Resources

      For more information about Insurance Fraud or where to report it, contact the following organizations.

      Check to see if your state sponsors a fraud bureau that investigates insurance fraud most states do. You may even be eligible for a reward if you report a scam.

      Go directly to the insurer you think is being defrauded. Some companies have systems in place for reporting fraud. If the company doesn t have a reporting system or fraud hotline, call or write the company headquarters.

      National Insurance Crime Bureau (NICB)

      The NICB is a non-profit organization that partners with insurance companies and law enforcement to help identify, detect, and prosecute insurance criminals. The NICB web site is an excellent source of information.

      Coalition Against Insurance Fraud (CAIF)

      The CAIF is a national alliance of consumer groups, public interest organizations, government agencies, and insurers dedicated to preventing insurance fraud. The CAIF website offers a wealth of information for consumers.

      National Association of Insurance Commissioners (NAIC)

      The NAIC assists state insurance regulators in serving the public interest and achieving regulatory goals. You can find numerous fraud resources on the NAIC website.

      Individuals are always encouraged to report Insurance Frauds to their local FBI offices.

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