What is Insurance Fraud?
Insurance fraud is not a highly visible crime, but an extremely costly one. In fact, insurance fraud is the second most costly white-collar crime in America (tax evasion being the first).
Insurance fraud costs consumers approximately $150 billion a year in damages, leaving the average family paying a minimum of $1,000 a year in higher insurance premiums and costs of goods and medical services.
Despite this, research conducted on consumers’ attitude towards insurance fraud found 2 out of every 5 Americans didn’t see anything wrong with making a fraudulent insurance claim to receive money they weren’t entitled to. As well as, majority of people believed insurance fraud crimes were victimless crime. But, in reality we, the average consumer, senior citizen, business owner, are all the victims.
We will be penalized with higher insurance premiums, goods, and services to compensate for the hundreds of millions of dollars lost a year by insurance fraud schemes, such as the Worker’s Compensation fraud , Medicare fraud , and Auto fraud.