Economic crisis sparks added fraud woes

By Michael Pommier

The Fort Scott Tribune

As the economy continues to decline, insurance companies are on the lookout for fraud.

In a press release, Kansas Insurance Commissioner Sandy Praeger said the Kansas Insurance Department's Anti-Fraud division is expecting a busy year reviewing potential cases because of activities related to the national economic downturn.

"In general, the world is probably going to use insurance to collect some money," John Gross of Gross Insurance said.

According to Praeger, insurance fraud is a multi-billion dollar annual industry, taking in all lines of insurance. Praeger said medical false claims, Medicare/Medicaid, and fake auto schemes are the top three types of fraud.

Gross said the only thing that will change is insurance companies will be examining each claim under a magnifying glass.

"Basically what they are going to do is look a lot harder, and they are looking pretty hard right now," Gross said.

Recent scams around the country include Hew Hampshire and Ohio residents receiving a call from strangers claiming to be insurance company representatives. These callers then demand personal information including bank account numbers.

In Kansas, some residents have received a letter made to appear as though it is from the IRS, signed by someone in "IRS public relations." The letter is targeted toward non-resident aliens in which they are asked to provide information to protect their exemption status. It was reported in Wichita that Medicare beneficiaries have received calls from so-called Medicare employees to collect personal information.

According to Gross, there is no type of prevention from insurance fraud other than being careful. He also recommended that when buying insurance, people should be careful and spend wisely.

"Although we may not have as much money as we did five years ago, we probably better spend a little bit more money to make sure our insurance is correct," Gross said.

For additional information on anti-fraud activities and ways consumers can protect themselves, go to the Anti-Fraud section of the Kansas Insurance Department's Web site, www.ksinsurance.org.