INSURANCE FRAUD RESTITUTION IN VIRGINIA TOPS $10 MILLION
New Statistics Show Continued Success by Insurance Fraud Division

RICHMOND – The Insurance Fraud Division (IFD) of the Virginia State Police (VSP) released its 2003 annual report today showing court-ordered restitution for insurance fraud-related crimes in Virginia has exceeded $10 million since the IFD was formed in 1999.

In addition to restitution reaching $10 million, false insurance claims reported to the IFD in the past five years surpassed $32 million. The IFD has also received more than 4,400 insurance fraud notifications from citizens, the insurance industry and law enforcement community.

In 2003, the “Sharp Eye” $25,000 reward program was unveiled at the annual Virginia Chapter of the International Association of Special Investigation Units Fraud Seminar. The new reward program will pay up to $25,000 for information leading to the arrest of individual(s) who have committed insurance fraud in Virginia. The reward program will be promoted via a statewide billboard campaign in 2004.

Arrests by the IFD special agents, in 2003, resulted in a record number of felony convictions for the crime of insurance fraud. Property fraud cases showed the largest increase with 37 notifications being received as a result of Hurricane Isabel. The IFD reached more than 43,000 individuals through its insurance fraud awareness programs and training activities.

Insurance fraud is ranked second behind tax evasion as the most common and costly white-collar crime and adds as much as $1,000 to the costs of goods and services a family pays each year. Virginia citizens also pay between $200 and $1,000 per year in additional premiums due to fraudulent insurance claims.

The Insurance Fraud Division of the Virginia State Police began in 1999 as a result of legislation passed by the Virginia General Assembly in 1998. In 2002, legislation was passed unanimously that eliminated The IFD’s "sunset" provision that would have terminated the division’s operation as of Jan.1, 2003.

The division's mission is to stem the growing incidence of insurance fraud in Virginia. By providing trained investigators and increasing citizen awareness, the division aims to cut insurance fraud, a crime Virginians pay for through increased costs of goods and services and higher insurance premiums. The IFD investigates fraud related to property and casualty insurance.

The Virginia State Police is committed to “Stamp Out” insurance fraud occurring in the Commonwealth. If you have knowledge of a fraudulent insurance scheme or suspect you may have been the victim of insurance fraud, report the activity to Virginia State Police Insurance Fraud Division on the insurance fraud hotline at 1-877-62FRAUD (1-877-623-7283) or visit www.stampoutfraud.com. You may also be eligible to receive a reward of up to $25,000.