March 14, 2007

INSURANCE FRAUD CONVICTIONS GOING UP
2006 Statistics Show Success in Stamping Out Insurance Fraud in Virginia

According to the 2006 Annual Report recently released by the Insurance Fraud Program (IFP) of the Virginia State Police (VSP), convictions for insurance fraud and related crimes in Virginia are on the rise.  There were 151 convictions in 2006, an increase of 74 percent.

In addition, the 2006 IFP statistics show the number of notifications received by the VSP for suspected fraud reached 1,895, an increase of more than 15 percent over 2005.  Since the program began in 1999, the VSP has received more than 9,000 notifications of suspected fraud.  Those notifications came from Virginia citizens, the insurance industry and law enforcement.

The VSP investigates fraud involving property, casualty and workers’ compensation insurance. In 2006, insurance fraud special agents initiated 368 investigations, which is a slight increase over 2005. Personal injury and casualty cases were up by more than 18 percent, and 36 percent of those cases involved workers’ compensation. Seventy-two percent of the property fraud cases involved motor vehicle and auto fraud.

The IFP continued to promote its “Sharp Eye” Reward through a statewide advertising campaign.  Television commercials ran in all regions of Virginia except Northern Virginia, where signage on the Virginia Railway Express and Metro carried the reward message in both English and Spanish.

Insurance fraud is a costly crime that affects all Virginia households in not only increased premiums, but it also drives up the cost of everyday goods and services. The crime of insurance fraud is ranked second behind tax evasion as the most common and costly white-collar crime in the US.  It’s estimated to add as much as $1,000 per Virginia household to the cost of goods and between $200 and $1,000 per year in additional premiums due to fraudulent insurance claims.

The VSP 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 Program on the insurance fraud hotline at 1-877-62FRAUD (1-877-623-7283) or visit www.stampoutfraud.com.  Tipsters may also be eligible to receive a reward of up to $25,000.

Click here for a copy of the 2006 Annual Report.