For various reasons, such as financial hardship, residents of Wisconsin could find themselves strongly considering the idea of bamboozling their insurance company. After years of paying premiums in full and on time, they could feel their insurer owes them.

Before risking criminal charges, it is best to turn to HowStuffWorks and their breakdown of how insurance companies spot fraud. After learning how thorough insurers are and the resources they have access to, would-be fraudsters may think twice.

Past claims

Policyholders who file a lot of claims are usually under the light of suspicion, whether they know it or not. Any future claims require a magnifying glass and a microscope before approval…or denial, as the case may be. Also, insurance companies keep thorough records that help them compile data pointing to signs of potential fraud.

Dire financial straits

As noted by Effective Coverage, another way insurance providers uncover potential fraud is signs of financial hardship when a person files a suspicious claim. Since signing up for the policy, the person’s financial situation may have worsened, leading her or him to file a fraudulent claim, or the policyholder may file a claim only a short time after signing up for a policy.

Odd behaviors

Sometimes, policyholders inadvertently give themselves away while filing fraudulent claims. Sizeable claims or losses submitted with monk-like calm and handwritten receipts for repairs are two suspicious indicators. Another is a bump in coverage right before the policyholder files a claim.

Insurance companies will not hesitate to hire a private investigator to check out a claim. Compared to the overall cost of a suspicious claim, hiring an experienced and reputable private investigator is a wise investment.