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Home > Consumers > Fraud > How fraud affects you
How fraud affects you
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)
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North Dakota Insurance Department
600 E. Boulevard Ave.
Bismarck, ND 58505-0320
Phone 701.328.2440
Toll free 800.247.0560
Fax 701.328.4880

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