To recognize the impact the crime of insurance fraud has on all citizens of the commonwealth, Governor Terry McAuliff has proclaimed May 11 – 17, 2014, as Insurance Fraud Awareness Week in Virginia.
The crime of insurance fraud affects all Virginians – not only increasing the amount of premiums paid, but also the costs of everyday purchases. Ranked second behind tax evasion as the most common and costly white-collar crime in the United States, insurance fraud costs the economy almost $85 billion a year according to the Coalition Against Insurance Fraud.
In Virginia, citizens may pay between $200 and $1,000 per year in additional insurance premiums and as much as $1,000 more each year for the cost of goods and services due to the negative economic impact of fraudulent insurance claims.
Insurance fraud comes in many forms and can be committed by anyone – professional fraudsters and criminals, policyholders who submit fake or exaggerated claims, or insurance professionals who take advantage of the unwary policyholder.
Since 1999, when the Insurance Fraud Program was established as a unit in the Department of State Police, more than 20,000 suspected incidences of insurance fraud have been reported to the IFP, resulting in almost 2,500 arrests and more than $18 million in court-ordered restitution.
Source: Virginia State Police
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