NICB’S ’The Informer’ Spotlights Natural Catastrophes And Avoiding Post-Disaster Contractor Fraud

The National Insurance Crime Bureau (NICB), the nation’s leading not-for-profit organization exclusively dedicated to combatting and preventing insurance crime, is pleased to release its latest issue of The NICB Informer. The Summer edition focuses primarily on natural catastrophes and post-disaster fraud issues, investigations, and information resources. The publication is aimed at providing insurance industry executives with anticipatory intelligence to help identify risks and emerging threats to the industry.

‘As insurance claims increase in the aftermath of a catastrophic event, so, too, does the opportunity for fraud,’ said David Glawe, president and CEO of the National Insurance Crime Bureau. ‘Sadly, many fraudsters prey on disaster victims at a time when they are emotionally devastated and most susceptible to scam artists who present themselves as concerned contractors.’ While spring is notorious for volatile temperatures and tornadoes, summer brings with it the increased risk for hurricanes and wildfires. In 2020, the U.S. experienced 22 separate weather and climate disaster events where overall damages reached or exceeded $1 billion—the highest number on record. The costliest weather events have historically occurred in the second half of the year.

Also in this edition is a story highlighting the threat of cybercrime, noting that organizations fall victim to ransomware every 14 seconds. Part of the problem is the work-from-home environment as security vulnerabilities are more prevalent.

Readers will also learn about how the opioid crisis is affecting insurance rates. NICB has investigated questionable workers’ compensation claims and staged auto accidents for years in relation to the opioid crisis. In short, NICB field agents discovered a common theme: these criminals want money and pills.

‘Insurance touches nearly everything we can think of in our day-to-day lives,’ added Glawe. ‘As such, insurance fraud follows closely behind, whether it is in the aftermath of natural disasters, cybercrime, or auto theft and accidents, the list is essentially endless.’

Anyone interested in receiving a free digital copy of The NICB Informer can sign up or send an email to TheNICBInformer@nicb.org to be added to the distribution.