June 14, 2024

Business Bib

Business & Finance Blog

Why you should report insurance fraud

2 min read

Insurance fraud is a serious crime. And while some may think that since insurance fraud doesn’t cause bodily harm to others, that it’s a victimless crime — but the opposite is true.

Insurance fraud costs consumers millions of dollars annually in the form of higher prices for goods, increased premiums and increased costs for services.

However, the total cost of insurance fraud annually is difficult to estimate because much of these crimes go unreported. If you know someone who has committed this type of crime, it’s vital that you take the time to report insurance fraud accurately.

What is Insurance Fraud?

It’s important to keep in mind that insurance fraud can take many forms. Some of the most common include:

  • Homeowner’s who falsely claim that their home was burglarized, and valuable items were stolen.
  • Doctors who bill insurance providers for services that were not provided.
  • Drivers who stage fake accidents.
  • Employees who collect workers’ compensation benefits while still on the job.
  • Body shop owners who agree to inflate auto damages on an insurance claim to split the profits with a customer.

How to Report Insurance Fraud

If you suspect that someone has committed insurance fraud, you should report the situation to your local Department of Financial Services and Regulation in writing. The matter will be kept confidential, so there is no need to fear retaliation for making a report.

Depending on your state, there may be a wide range of whistleblower programs available. If you are unsure where to file an official report of insurance fraud, check out our free case evaluation options online today.