It’s no secret that many insurance fraud schemes involve murder, illicit activities, and mountains of debt. And of course, many involve idiots. Yes, people have been known to attempt the dumbest feats to get a quick payout, oftentimes getting caught in the process and facing probation, hefty fines, and time in the slammer.
“[People are driven by] desperation, greed and a lack of common sense, it depends who you are, how bad the economy is, and how much your finances are affected,” says Jim Quiggle, spokesperson for the Coalition Against Insurance Fraud.
Quiggle says there has been a steady increase in fraud cases since 2007 and 2008 when the country was at the height of the recession. Those cases included people torching their cars or dumping them into lakes to collect auto insurance money, personal luxury goods like jewelry and sound systems started going missing and claims were being made on their renters insurance and homeowners insurance, and fake health insurance plans started popping up around the country.
“Among average consumers, mysterious disappearances and theft are the most popular schemes… it’s easy to say someone stole my camera, or I lost my watch at the beach. These items can be expensive and disappear very easily. Fake health insurance plans are also very popular with the struggling economy because people are desperate to get health coverage, and organized criminals are doing a very effective job selling bogus health insurance plans… its a coast-to-coast scam with thousands of people bilked,” he says.
And even though we know that not all insurance fraudsters are completely daft, we’ve compiled a list of the #11 Dumbest Insurance Fraud Schemes of All-Time from real cases supplied by the Coalition Against Insurance Fraud. Look over the list and ask yourself, “What were they thinking?”
#11: Garrett Dalton, a Naugatuck, Conn. correctional officer, was collecting thousands of dollars in workers compensation money after he was “hurt” on the job and no longer able to work.
Dalton, wearing a dress, a woman’s wig, and high heels, revealed the scheme himself on TV during a radio station’s promotional race that included balancing an egg in a spoon. The coveted prize Dalton was trying to win? Tickets to a Hannah Montana concert.
