DOVER, Del. – State Auditor Kathy McGuiness announced today the release of a new special report detailing the Auditor’s Office’s fraud hotline.

“The Fraud Hotline is a critical resource for the public to report concerns about their state government, and it also serves as a valuable resource for identifying areas of increased risk for fraud, waste, abuse, or misuse in our state,” said Auditor McGuiness.

The Special Report, “Auditor’s Office Fraud Hotline Summary Report of Fiscal Year 2022,” reviewed recent changes improve the economy and efficiency of the hotline and the Auditor’s Office’s implementation of a continual improvement process to better serve Delawareans.

“This office is committed to improving all parts of state government, and that includes reviewing our own processes and programs to identify additional value for the public who depend on our work. I am pleased our effort to expand reporting options and improving our communication efforts are yielding more public engagement,” said Auditor McGuiness.

The Fraud Hotline saw a substantial increase in reporting in FY2021 and demonstrates the subject of public tips tend to correspond with national issues and current events. FY2021 was the period of July 1, 2020 through June 30, 2021, and the types of fraud tips received by our office mirror some of the most pertinent and discussed issues of the year.

Auditor McGuiness explains, “The Fraud Hotline received more tips in FY2021 than the prior 10 years combined, and a substantial number of those reports concerned the Department of Labor and the Office of Attorney General.” Auditor McGuiness continues to say, “These tips paralleled national and local discussions over criminal justice issues and concerns with Unemployment Insurance.”

The Fraud Hotline is a critical resource for the public to have their voice heard and address their concerns, but it also serves a practical purpose for improving how we identify issue areas.

“Thank you to the people who bring their concerns to our attention. We take these reports very seriously, and they help shape our annual audit plan,” said Auditor McGuiness. “These reports are a critical resource for improving accountability and transparency and providing better public service in our state.”

You can find the special report, “Auditor’s Office Fraud Hotline Summary Report of Fiscal Year 2022” here.

Learn about the Delaware State Auditor’s Office at https://auditor.delaware.gov

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Contact: Tori Parker, Deputy Auditor tori.parker@delaware.gov

DOVER, DEL. – This week marks the beginning of Delaware’s third Fraud Awareness Week, which Governor John C. Carney initiated in 2019 at State Auditor Kathy McGuiness’ request.

During Delaware’s Fraud Awareness Week, which overlaps with International Fraud Awareness Week, McGuiness is encouraging state agencies and organizations to take time to increase employee awareness about fraud prevention, detection, and reporting.

“Learning how to report fraud when it occurs is one of the most important first steps,” McGuiness said. “In 2019, we developed the first app for fraud in Delaware, and community members and employees continue to be one of the greatest resources for fraud detection.”

Education and awareness of fraud prevention are essential for reducing the occurrence of fraud against and within Delaware state government. All levels of government are frequent targets of fraud attempts, and such instances undermine the good work and reputation of government employees. According to the Association of Certified Fraud Examiners (ACFE), instances of fraud have exacerbated due to the coronavirus pandemic.

“Our Fraud Hotline team has fielded and responded to thousands of calls about suspected fraud, waste and abuse,” McGuiness said. “In fact, there have been over 1,000 communications in fiscal year 2021 alone.”

To report fraud, waste and abuse of taxpayer dollars, visit fraud.delaware.gov or call the toll-free fraud hotline at 1-800-55-FRAUD.

Learn more about the Delaware State Auditor’s Office at auditor.delaware.gov.

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Contact:

Anna Nuzzolese, Executive Assistant

Anna.nuzzolese@delaware.gov

302-857-3907

Late last month in New Castle County, a Grand Jury indicted multiple residents for insurance fraud. The indictments stem from Department of Insurance Fraud Prevention Bureau investigations, in partnership with the Delaware Department of Justice. They allege that following vehicle accidents, each indicted resident did knowingly present false information to auto insurers or otherwise caused false information to be presented.

“I want to commend our Fraud Prevention Bureau for their work identifying deceitful activity and helping to bring those who would defraud Delaware residents and companies to justice. Their efforts continue to send a strong message that fraud will not go unnoticed here, which can prevent future crimes,” said Insurance Commissioner Trinidad Navarro. “Through this work, we can help keep insurance premiums from rising by helping to make sure companies do not have to pay out fraudulent claims, and we can educate residents that engaging in fraud is very costly.”

A resident of Wilmington was indicted on September 27 following a two-vehicle auto accident and a fraudulent claim filed with Permanent General Insurance. The resident had no insurance at the time of the accident but obtained it afterward, and intentionally misrepresented the date of the accident to obtain a benefit that they were not entitled to. Video evidence was uncovered that confirmed the accurate date of the accident.

A resident of Newark was indicted on September 27 for knowingly misrepresenting the time of an auto accident. During the investigation, evidence was obtained that confirmed that the resident had no auto insurance coverage at the time of their accident and that their auto insurance policy was obtained after the accident had occurred. They engaged in insurance fraud through intentionally providing false information in order to obtain a benefit that they were not entitled to from Good to Go Insurance.

An additional resident was indicted for similar activity in an attempt to defraud Progressive Insurance. The resident obtained an auto insurance policy and filed a claim two days later, stating that their vehicle was struck by an unknown vehicle while parked at their residence. An examination of vehicle damage was inconsistent with this depiction, and the investigation further identified that the vehicle was involved in an accident three days prior to obtaining insurance coverage.

An indictment is merely an allegation and is not evidence of guilt. In all cases, defendants are presumed innocent until and unless proven guilty. Insurance Fraud is a felony.

Commissioner Navarro has a background in law enforcement and serves as Chair of the National Association of Insurance Commissioner’s Antifraud Task Force. The Delaware Department of Insurance Fraud Prevention Bureau is fully funded by annual assessment fees, not taxpayer dollars, and employs staff with extensive law enforcement and insurance investigative backgrounds and training, including credentials such as Certified Fraud Specialists and Accredited Healthcare Fraud Investigators.

The Bureau facilitates the detection of insurance fraud and works to reduce fraud occurrence through enforcement and deterrence. Additionally, the Bureau requires restitution for deceptively obtained insurance benefits, and by doing so reduces the amount of premium dollars used to pay fraudulent claims, in turn decreasing the likelihood of premium increases. The Bureau can be reached by toll free hotline (800) 632-5154, or (302) 672-7350, or by emailing fraud@delaware.gov. Reporting known or suspected fraud is free of charge and can be done confidentially.

DOVER, DELAWARE – Delaware State Auditor Kathy McGuiness and Insurance Commissioner Trinidad Navarro together will host a virtual Fraud Town Hall via Facebook live on Wednesday, October 21, 2020 beginning at 3:00 pm.

The Auditor’s Office and the Department of Insurance want to jointly raise awareness of the types of fraud schemes both agencies regularly encounter and ways consumers can protect themselves from becoming victims.

“Over the past several months, we’ve seen an increase in fraud complaints brought on by the coronavirus pandemic,” said State Auditor Kathy McGuiness. “Our responsibility as a watchdog is to ensure proper safeguards and internal controls are in place to combat it.”

“As the largest consumer protection office in the state, the Department of Insurance reviews more than 525 fraud referrals a year, filing 531 civil and 15 criminal cases last year,” said Insurance Commissioner Trinidad Navarro. “With new technologies entering the insurance and healthcare arena, and Open Enrollment for Medicare and the Affordable Care Act taking place in the coming months, it is more important than ever that we work together to detect, prevent, and respond to fraud.”

Delawareans are understandably fearful of the repercussions from the health and economic crisis and rightfully want to know what their elected officials are doing to protect them from fraud and scams. The Fraud Town Hall will provide them answers.

Watch live at FB.me/DeTv302.

Learn about the Delaware Auditor’s Office and Department of Insurance online at https://auditor.delaware.gov and https://insurance.delaware.gov/.

Contact: Alaina Sewell, Executive Assistant, Alaina.Sewell@delaware.gov, 302-857-3931

Delaware’s Director of the Office of Unclaimed Property (OUP), Brenda Mayrack, is warning residents about fraudulent scam text messages that are circulating across several states, including Delaware. These messages invite recipients to follow a link to access the “DE un-claimed asset database.” Please be advised that OUP never communicates with claimants or potential claimants by text.

Similar text messages have been reported in New Jersey, Michigan, Louisiana,and Idaho. This type of message is not an authorized form of communication from OUP and should be treated with extreme caution. Never follow any link from a questionable source – ignore or delete these messages and visit the OUP website to securely and safely search for Delaware unclaimed property, to file a claim, or check the status of a claim at https://unclaimedproperty.delaware.gov.