McDonnell Proclaims May 9-15 as "Insurance Fraud Awareness Week" in Virginia
Insurance fraud is the second most common and costly white-collar crime in the United States, costing the nation’s economy almost $80 billion a year according to the Coalition Against Insurance Fraud. It trails only tax evasion.
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.
That’s why governor Bob McDonnell has proclaimed this week, May 9-15, “Insurance Fraud Awareness Week” in Virginia. The Virginia State Police is committed to the cause through its own Insurance Fraud Program (IFP).
“Virginia has made great strides in the statewide fight against insurance fraud,” said Colonel W. Steven Flaherty, Virginia State Police Superintendent. “This has been possible due to the outstanding support of the insurance industry, the cooperation of other law enforcement agencies, and the general public’s willingness to become involved.”
Since1999, when the IFP was established as a unit in the Department of State Police, more than 13,000 suspected cases of insurance fraud have been reported to the IFP, resulting in more than 1,500 arrests and $13 million in court-ordered restitution. The dollar amount of reported, suspected false insurance claims surpassed $86 million.
Insurance fraud comes in many forms and can be committed by anyone – by professional fraudsters and criminals, by policyholders who submit fake or exaggerated claims, or by the insurance professional who doesn’t do what the unwary policyholder is expecting. You can avoid the crime when making a claim by not including any past damage or exaggerate your claim. Also, be aware of attempts to convince you that "everybody is getting rich" so you may as well try to get additional money.
If citizens have knowledge of a fraudulent insurance scheme or suspect they may have been the victim of insurance fraud, they are encouraged to report the activity to the Virginia State Police Insurance Fraud Program. They may call the toll-free hotline at 1-877-62FRAUD or visit www.StampOutFraud.com. Tipsters can remain anonymous, and a reward of up to $25,000 is available for tips leading to an arrest for the crime of insurance fraud.