North Carolina Battles Rising Insurance Fraud Since Pandemic

North Carolina has witnessed a significant spike in insurance fraud since the onset of the COVID-19 pandemic, as reported by Insurance Commissioner Mike Causey at the recent Council of State meeting. One of the most troubling forms of fraud involves online scams targeting senior citizens, convincing them to withdraw money from annuities or savings accounts to invest in fraudulent schemes promising high returns.

In the Piedmont area, scammers are posing as Department of Insurance employees, going door-to-door attempting to sell fake insurance policies. Online medical scams have also been reported, with out-of-state doctors writing prescriptions for North Carolina residents and sending them to unethical pharmacists within the state. Additionally, there have been instances of staged accidents for insurance money, where fraudulent claims are made using photos of wrecked vehicles found online.

Commissioner Causey emphasized the financial impact of such fraud, stating that Americans are collectively paying over $300 billion annually to cover known costs of insurance fraud. This equates to about 20 cents of every dollar spent on insurance going toward fraud coverage. To address the issue, the North Carolina Department of Insurance has established a fraud hotline (888-680-7684) for reporting suspicious activities.