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Coronavirus Scammers Employ Insurance Fraud

Prediction: 'Coronavirus Scammers to Create Massive Insurance Fraud Claims'

Today in Los Angeles, California, Howard Schneider, private investigator and nationally known SIU Fraud Investigator gave notice to the Insurance Industry of potentially massive fraudulent insurance claims as a result of scammers bilking insurance carriers and making false claims during the Coronavirus."

Schneider said, "We are living in one of the most precarious periods of our lifetime. Americans are dying and we do not know when this pandemic will end. We have seen the best of our fellow Americans during this time and we continue to see heroes every day."

Despite the cooperation of all Americans, Schneider went on to say, "We are beginning to see how a failing economy leads to increasing claims. We saw this during the great recession of 2008- 2009, when the desert surrounding Las Vegas became known as the graveyard for SUV's. American then could not afford these gas guzzling vehicles and had them torched then filed a claim, wiping out their exorbitant monthly payment."

Schneider, who has been a private investigator for almost 40 years, previously in NY and now in California, detailed several type of claims and scenarios:

OBSOLETE VEHICLE

Prior to the Coronavirus, husbands and wives who had two jobs went their separate ways to work. Now both are working from home and the second car bought for the job is now obsolete. Vehicles are easy to make disappear and unloading these commodity items is not as big as an emotional shock as burning your home. These cars may be found at the bottom of a lake or torched on a hill.

TORCHED HOME

After 4 or 5 months of non-payment of a mortgage, homeowners who lost their jobs are approached by scammers who convince them to "hire for fire" and thus mortgage payments go away.

FLOODED HOME

A family that cannot make their dollar stretch far enough are convinced to leave for a weekend and have someone break the pipes in their home causing a major flood.

INFESTATION

More common fraud scheme and seeing it more and more. Renters are evicted from their prior apartment and with little or no money they rent a new apartment. While so doing , they also buy bed bugs, mice , and rats, they wait a month allowing these creatures to roam the apartment. Then file a huge habitability claim noting the insured should not have rented to them with this health hazard.

TOYLAND

During good economic times consumers buy luxury "Toys", boats, motorcycles, RV's, expensive watches, jewelry, audio and video systems are the first to go. They will burned, found at the bottom of the lake, stolen etc.

Schneider went on to say, "During tough times there is a real temptation to take part in these schemes. The professional scammers will always be around. But I caution folks who would never normally take part in this kind of thing to think twice before engaging in insurance fraud."

Schneider continued by noting, "Eventually there will be normalcy, but if you are convicted of a crime, it will stay on your record forever, maybe causing loss of a job or a promotion and your reputation."

Schneider made it clear his team of investigators have the most sophisticated tools to detect and identify insurance fraud. Over the years, he has saved millions of dollars for insurance carriers. He ended by noting that we all need to be sensitive to any claim, especially in these unpredictable times.

"Let's hope and pray this terrible period of fear, isolation and economic downturn fades away soon."

Schneider is the President of Schneider Associates dba Howard Schneider Investigations, a private investigation company. His seminars, "A Common Sense Approach to Identifying Fraud," have been recognized throughout the nation. He has been interviewed regularly on television, radio and newsprint and quoted in articles. He served as Executive Assistant in the United States Congress and in the New York State Legislature.

SCHNEIDER ASSOCIATES can be reached by phone at 818 419 8140, or 805 494 0370, or by e mail at Hschneiderpi@aol.com