by: Shannon Stockdale
Insurance fraud is the second most costly "white-collar" crime in America. This crime is being committed by individuals and groups. Several professional organized crime rings have been uncovered all over the country. Of all claims received by an insurance company those that are fraudulent account for a significant portion and cost billions of dollars annually. According to the NYCM website, insurance fraud accounts for $80 billion a year.
The types of fraud are diverse and occur in all lines of insurance. The severity in each situation varies from slightly exaggerating claims to deliberately causing accidents or damage. These fraudulent activities affect the lives of innocent people. Victims may be harmed directly through physical loss or in a more indirect manner as these crimes cause insurance premiums to be higher.
According to the The National Insurance Crime Bureau insurance fraud translates into $200-$300 in additional insurance premiums each year for the individual.
To find out more about insurance fraud and what you can do to avoid it please visit this link:
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