Staged accidents are typically preplanned by criminal organizations. In advance of the staged accidents, they have set up their method to benefit from the “accident”; which typically is through fake medical treatment but also can be through fake auto-body work or large third party judgments.
We have seen medical clinics be formed explicitly to be used by these criminal organizations to provide medical “treatment.” We have also seen where “runners”, who already were chasing down accident victims via police radio, resort to fabricating their own accidents.
How it goes down
There are multiple ways a staged accident can occur.
For example, in New Orleans, where third-party auto insurance is involved, the perpetuators would purposely slam their vehicle into eighteen wheel semi trucks. They were so expert at it, they could do it without really hurting themselves, but making massive third-party claims against insurance carriers.
On the other hand, in Florida, where no-fault auto insurance is involved, typically two cars purposely “crash” into each other. The M.O. is to crash near a stop sign in a residential area where there are no other witnesses; call the policy; give a fake report to the police, and then go to the fake medical clinic. This is the type of fraud we contemplated when we selected the stock photo above. In this scenario, the claimants have purposely waited for the police because they believe a police report may make their claim get through an insurance carrier’s screening process.
How we spot it
We have proprietary algorithms that are constantly sifting through your data. We have calibrated these algorithms to detect patterns in accidents, especially in regards to their treating clinics and/or auto-body providers, which detect when a series of accidents occur which very likely were not caused by chance. As soon as this becomes apparent, these claims are flagged and immediately given as leads to an SIU department.
Why are we different?
Our focus is to provide leads to SIU, not build a system that “pre-clears” claims. We have seen many algorithmic systems sold with the purpose of fast tracking claims. Whether you fast track a claim is your business; but we will analyze all claims as they go through your system and provide a lead to SIU when potential fraud is spotted. Furthermore, our algorithms are not fooled by people who have managed to stay out of databases related to past criminal activity, such as recent immigrant arrivals.
Examples in the news
- BBC says 170k of the accidents last year in the UK were staged
- New Orleans Firm Hit With RICO Lawsuit over Alleged Staged Accidents
- Daniel Patrick Keating becomes the first attorney indicted in New Orleans staged accident scheme
- News about four more being charged with regards to the New Orleans staged accident scheme
- Hudson ‘Runner’ In $3.5M Accident Insurance Fraud Scheme Gets Year And Day In Federal Prison
- Multiple staged accidents, including breaking own teeth as part of the staging
- Good details on how New Orleans staged accident scheme worked
- Louisiana: Feds charge 5, including an attorney, in alleged phony accident, insurance billing scheme
- Washington: 8 plead guilty to staging 13 accidents worth $2.8 million
- Nevada: Ex-correctional officer pleads guilty in fake accident case
- Nevada: Five plead guilty as part of a 27 person ring staging 19 accidents
- $600k stolen in medical payments in Connecticut via 50 staged car crashes
- California body shop owner, 17 others charged with insurance fraud related to $150k physical damage payments
- Georgia: Warrants issued for 26 accused in $500,000 insurance fraud scheme
- California insurance fraud ring in San Diego bilked companies out of $125K
- More than two dozen people in California were charged in connection of staging accidents for physical damage claims worth $140k
- Vico Brothers convicted for $3 million in PIP fraud in Florida
- California: 33 people scammed insurance companies by crashing cars for $500k
- Very large New York scheme involving over 30 people bilks insurers out of over $100 million in PIP benefits
- New York: 5 Arrested In Alleged Accident Staging, Insurance Fraud Ring