Across the nation, insurance fraud from staged auto accident schemes costs the insured more than $50 billion yearly. Crashers is a true-to-life novel that uncovers how the innocent get lured into the scheme of "cappers" and "hammers."
Guest Post by author of Crashers, Lindy S Hudis
Of the 10 million or so automobile accidents reported each year, one out of five of them may not even be accidents at all. In fact, they just may be a planned or “staged” accident – one of the fastest growing types of fraud in the country today. If you drive a car, you could be another victim.
What criminals find most alluring about this type of fraud, is that it is difficult to prove. This is why the “crash for cash” accidents continue to be a growing problem. How fast is this growing? The National Insurance Crime Bureau states that as recently as 2009, there were around 85,000 questionable insurance claims reported. That is up 43% from 2008. It may not be bank robbery, but this crime is here to stay.
There is also an array of professionals who are recruited to participate in this type of fraud. Attorneys, doctors and various “victims” - sometimes referred to as “cappers” and “hammers” - all collaborate to misrepresent facts to fraudulently obtain insurance money. The results of this are skyrocketing costs for insurance premiums, medical insurance, and various other expenses. This crime costs the insurance industry literally hundreds of millions each year.
Staged automobile accidents usually include these types of situations: fake auto accidents with phony injuries, falsification of reports about cars being hit, and “victims” being added to fake accident reports.
There are several types of scams involved in these particular crimes:
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