Some people think insurance fraud is a victimless crime. But insurance fraud costs everyone. And some schemes, like arson or a staged auto accident, can put innocent people in physical danger.
Insurance fraud is more widespread, and more costly, than many people think. Consider these statistics:
Fraud accounts for 10 percent-or $30 billion-of the U.S. insurance industry's incurred losses and loss adjustment expenses per year, according to a May 2009 study by The Insurance Information Institute.
Insurance fraud is the second most costly white-collar crime, after tax evasion, costing Americans about $30 billion each year. (National Insurance Crime Bureau)
Fraud and buildup (excessive treatment that's expensive but not deliberately fraudulent) added $4.8-$6.8 billion in excess payments to auto injury claims in 2007. (Insurance Research Council, Nov. 2008)
Health care fraud alone costs Americans $68 billion a year. (National Health Care Anti-Fraud Association, 2008)