Insurance Fraud / Auto Theft Unit
Contact Us / Report Insurance Fraud
What Can You Do?
Red Flags of Insurance Fraud
The Insurance Fraud Unit is responsible for investigating referrals of suspected fraudulent insurance acts; assisting
federal and local law enforcement in the investigation of fraudulent insurance acts; cooperating with local prosecutors
and the attorney general's office in the prosecution of fraudulent insurance acts; and promoting awareness of insurance
fraud throughout the state.
Contact Us / Report Insurance Fraud
If you have any knowledge of a fraudulent scheme, report the activity to the Louisiana State Police by:
Phone: (225) 925-3701 or (225) 925-3702
Fax: (225) 925-3769
Louisiana State Police
Bureau of Investigation
Insurance Fraud Unit
7919 Independence Blvd, Box A-19
Baton Rouge, LA 70806
Baton Rouge Field Office - 225.925.3850
New Orleans Field Office - 504.471.2716
Lafayette Field Office - 337.262.2051
Alexandria Field Office - 318.484.2190 (x 108)
Shreveport Field Office - 318.862.9913
Monroe Field Office - 318.362.4588
For questions concerning physical inspection certifications please contact administrative coordinator Helena Graham at 225.925.3536
What Can You Do?
- Be aware of staged accidents, such as intentional sideswiping or cars that cut in front of other vehicles, forcing collisions due to quick stops.
- Be aware of individuals that try to get you to leave the scene of an accident without calling police or obtaining a police report.
- Be aware that some individuals report damage as vandalism in an attempt to cover deliberate or previous damage to one's own property.
- Be aware of individuals making a false stolen vehicle claim to cover previous damage to a vehicle or to dispose of the vehicle.
- Be aware of individuals that inflate genuine claims to cover a policy deductible.
- Be aware of attempts to convince you that "everybody is getting rich" so you may as well try to get additional money also.
- Be aware of the possibility that someone may set a small fire in their home to obtain a new paint or remodeling job.
- Be aware of individuals that fake an on-the-job injury to stay off work after healing to collect Workers' Compensation benefits.
Red Flags of Insurance Fraud
Worker's Compensation Premium Fraud - occurs when an employer provides false information in order to obtain a lower insurance rating.
- The employee's injuries are not consistent with the employee's job classification or the nature of the business.
- The employee states that his/her employer is other than what is listed on the claim form.
- The employee disputes information supplied by the employer on the first report of injury.
- The employee disputes the average weekly wage due additional income (i.e., cash, per diem, and/or 1099 income).
- There are cross-outs and erasures on the injury forms.
- The employer refuses to cooperate in the claims investigation; refuses to provide employee with claim form.
- Employer's witnesses to the accident are generally management personnel.
- The employer is routinely cited for safety violations.
- Employer paying medical bills and not reporting injuries.
Worker's Compensation Fraud - occurs when an employee files an inflated or false injury claim in order to receive benefits or increase benefits.
- Employee is disgruntled, soon-to-retire, or facing imminent firing or layoff.
- Employee takes more time off than the claimed injury seems to warrant.
- Employee is new on the job.
- Employee is experiencing financial difficulties and/or domestic problems prior to submission of claim.
- Employee is unusually familiar with workers' compensation claim handling procedures and laws.
- Employee has several other family members also receiving workers' compensation benefits or other "social insurance" benefits, i.e. unemployment.
- Surveillance or "tip" indicates that the totally disabled worker is currently employed elsewhere.
- Employee comes to office for delivery of benefit checks, avoids use of US Mail.
- Employee cancels or fails to keep appointment, or refuses a diagnostic procedure to confirm an injury.
- Social Security number provided does not belong to employee.
- Employee refuses or cannot produce solid or correct identification.
Staged Accident Fraud - occurs when a person intentionally causes or is involved in an accident, or walks in and reports an accident in order to receive compensation for false or intentional damages and injuries.
- Claimant has prior accidents of similar circumstances.
- Claimant has multiple past claims with same attorney.
- Claimant is unemployed.
- Lack of familiar or personal relationships between occupants of claimant vehicle.
- Inconsistencies in multiple claimants' versions of seating in vehicle, why claimants were in vehicle, and destination of claimants.
- Claimant demonstrates familiarity with claims process and claim evaluation.
- Presence of an overly enthusiastic witness at the accident scene.
- Claimant has recently purchased vehicle, and/or insurance.
- Victim is usually female or elderly.
Property Fraud - the falsification or inflation of a claim for the loss of personal property in order to obtain a larger settlement.
- Insured is overly pushy for a quick settlement.
- Insured handles all business in person, thus avoiding the use of the mail.
- Losses are incompatible with insured's resident, occupation and/or income.
- Losses include a large amount of cash.
- Insured is willing to accept an inordinately small settlement rather than document all claims losses.
- Buildings and/or contents were up for sale at the time of the loss.
- Suspiciously coincidental absence of family pet at the time of fire.
- Building and/or business was recently purchased.
- Building is in deteriorating condition and/or lacks proper maintenance.
- Fire scene investigation reveals absence of items of sentimental value; e.g. family Bible, family photos, trophies.
- No police report or an over-the-counter report in situations where police would normally investigate.
- Insured's loss inventory differs significantly from police department's crime report.
Disaster Fraud - occurs in the aftermath of a disaster when the insured claims false or inflated claims on intentionally caused or pre-existing damage.
- Insured declares extensive losses without physical evidence, photographs or documented receipts.
- Items claimed to not match claimant's lifestyle, decor, house, occupation or income.
- Lack of carpet indentation from alleged large furniture or appliances.
- Insured is overly pushy for quick settlement.
- Investigation reveals absence of family photographs, heirlooms or items of sentimental value.
- Affected area was not evacuated.
- No other homes were damaged or destroyed in the affected area.
- Insured claims items were new.
- Insured can't properly describe items as to function or features.
- Insured property was not located in major damaged area.
- Property was in poor condition prior to loss.
- Insured cannot produce damaged item(s) for viewing.
- Insured claims unrepaired damage from a previous disaster.
Securities / Promissory Notes Fraud - the marketing and selling of investment opportunities that do not qualify with the regulations set forth by or have not been registered with the Office of Financial Institutions.
- Unbelievable interest rate offered on investment. If it seems "to good to be true". . . it probably is.
- An agent or other representative urges you to pay with cash.
- A salesperson urges you to cash in your certificates of deposit (despite the interest penalty) and put the money into investments, annuities, or life insurance policies.
Vehicle Theft Fraud - occurs when the owner of a vehicle disposes of or fraudulently reports their vehicle stolen in an attempt secure a settlement.
- Insured has lived at current address less than six months, or been with current employer less than six months.
- Insured does not have a telephone or is difficult to contact.
- Insured is unemployed.
- Insured claims expensive contents in vehicle at the time of theft.
- Insured is behind in loan payments on vehicle and/or other financial obligations.
- Insured has a previous history of vehicle theft claims.
- Vehicle was recently purchased.
- Vehicle has a history of mechanical problems or is a "gas guzzler".
- Vehicle has incorrect VIN, or VIN is different than VIN appearing on the title.
- Vehicle is recovered with seized engine or blown transmission.
- Vehicle is recovered stripped, burned, or has severe collision damage within a short duration of the time after loss allegedly occurred.
- Loss occurs within one month of issue or expiration of the policy.
- Coverage was obtained via walk-in business to agent.
- Coverage is for minimum liability with full comprehensive coverage on late model and/or expensive vehicle.
- Police report has not been made by insured or has been delayed.
- License plate does not match vehicle and/or is not registered to insured.
- Salvage yard or repair garage takes unusual interest in claim.