Geico Gets Scammed in Queens
One of the things that Geico has certainly done right is to create an image. The soft-spoken little lizard who serves as the company’s spokesman instills a quiet confidence in the company, even if only on a subconscious level. Make no mistake about it, however. Geico isn’t a car insurance company that’s likely to just roll over and play dead when they’ve been taken advantage of.
Take, for example, a recent situation in New York. Geico has recently filed a lawsuit that seems a large sum of money for both restitution and damages that came about because of a car insurance scam that recently ran in New York.
As it turns out, there have been a number of submissions of no-fault insurance claims seeking to be paid for radiology services. And, by a “number of submissions,” we’re actually talking about thousands.
Geico contends that these claims were made by way of a radiology center in Queens, although Geico did not disclose the names of the defendants in the case. Geico is hoping to recover $1.9 million from the defendants, as well as possible punitive damages that the court may award.
Geico was able to uncover the car insurance scam after its system flagged the radiology claims. They identified a systematic pattern, and this raised some flags.
The company has implemented a number of anti-fraud measures in its systems. Specifically, it has adopted these programs in New York in order to identify and weed out no-fault abuses. Currently, they’re working alongside law enforcement officials as well as the New York State Insurance Department in order to build their case.
The gecko was unavailable for comment. However, the Deputy Superintendent of Frauds and Consumer Services at the New York State Insurance Department did say that they were working with Geico, as well as a number of other car insurance companies, to combat these kinds of no-fault fraud cases.
There is a good reason that the department is making these moves. New York has double the number of no-fault fraud cases as any other state, and it’s obviously a problem that’s not going to go away by itself anytime soon.
Photo via jurvetson