...and costs an estimated $30 billion each year.
Insurance fraud is a specific crime in nearly every state. It is punishable by fines, restitution and, in serious cases, even jail time. It occurs when someone knowingly lies to an insurer to obtain payouts or benefits to which they are not actually entitled.
Despite the best efforts of SIU specialists and law enforcement, this crime is tough to prevent and prosecute. People like you are the first — and best — line of defense against insurance fraud.
Fraud Comes in Many Forms
Fraud can be a criminal act that is physically and/or financially harmful to an innocent victim (i.e., "Hard Fraud"), but more often it takes shape as inflated claims, exaggerated injuries, and misreporting of assets (i.e., "Soft Fraud").
Dependent on the nature, location, and severity of the crime, a person convicted of fraud may face:
- Community service
- Fines and Restitution
Insurance Fraud is On The Rise in America
Since 2007, fraudulent insurance claims in America have increased year-over-year in virtually every category. States and cities with no-fault laws and Personal Injury Protection (PIP) are particularly prone to auto insurance fraud because accident claims must be paid out regardless of who is at fault, opening the door to opportunist criminal claims and organized hard fraud schemes.
Insurance fraud is classified as a crime in almost every state. Most states have established fraud bureaus to fight it. Despite these facts, the National Insurance Crime Bureau reports a 23 percent rise in questionable insurance claims from 2008 to 2010.