NICB: Video Surveillance Pulls The Rug Out From Under Phony Slip-And-Fall Scams

On May 28, 2019, three individuals—part of a larger group of conspirators—were convicted of defrauding numerous New York City businesses and insurance companies of more than $31 million by orchestrating hundreds of phony "slip-and-fall" incidents.

While this case is certainly among the most egregious and lucrative in recent memory, there are many more of these incidents occurring across the nation in small mom-and-pop businesses where their impact is much more immediate and devastating.

Video – See slip and fall fraud caught on camera. Watch the video, and find out how NICB and Liberty Mutual Insurance worked together to prevent the fraudulent claim from being paid, and get the criminal prosecuted. https://youtu.be/u8WolTMahLQ

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For example, most business owners are aware of the need for liability insurance and most have coverage to protect them from legitimate incidents that occur on their property. But often they have very high deductibles and a single incident can erode a small business's profit for a month or more. In some cases, it may make the difference between remaining in business or closing their doors. Fraudsters know this and they will often prey on small business operators within their communities and bogus slip-and-fall incidents are a quick source of cash with little risk of apprehension.

A typical scenario goes like this: a small shopkeeper is alone at work when a customer arrives and roams the aisles looking at merchandise. After a time, the customer starts calling out for help. The shopkeeper responds to find the person on the floor, moaning and groaning from an injury he claims was caused when he slipped on something on the floor.

Now the stage is set for one of two possibilities. The victim might then and there demand an amount to "forget the whole thing" and disappear, or ask if the shopkeeper is insured suggesting that the incident isn't going away anytime soon.

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National Insurance Crime Bureau

Headquartered in Des Plaines, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through data analytics, investigations, learning and development, government affairs and public awareness. The NICB is supported by more than 1,100 property and casualty insurance companies and self-insured organizations. NICB member companies wrote over $496 billion in insurance premiums in 2018, or more than 81 percent of the nation's property/casualty insurance. That includes more than 92 percent ($254 billion) of the nation's personal auto insurance. To learn more visit www.nicb.org.

Frank Scafidi