May 1, 2007

GOVERNOR KAINE PROCLAIMS MAY 7-13 AS 
“INSURANCE FRAUD AWARENESS WEEK" IN VIRGINIA

RICHMOND – Insurance fraud is the crime we all pay for. To recognize the impact that the crime of insurance fraud has on the citizens of Virginia and the efforts of the Virginia State Police Insurance Fraud Program (IFP) to “stamp out fraud,” Gov. Timothy Kaine proclaimed May 7-13 as “Insurance Fraud Awareness Week” in the commonwealth of Virginia.

Just what is insurance fraud?  Insurance fraud occurs when anyone tries to make money from insurance transactions through deception. The fraud could be as simple as neighbors padding their claim to cover their deductible or as elaborate as car crashes staged by organized crime rings.

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.

“It’s not hard to understand why Virginia law enforcement, the Virginia insurance industry and Virginia prosecutors have joined forces to ‘stamp out fraud,” said Lieutenant W. Roger Rector, coordinator of the Insurance Fraud Program. “During the IFP’s eight years of operation, more than 9,000 insurance fraud notifications were received, resulting in more than 800 arrests, almost 400 convictions and $11.9 million in court-ordered restitution.”

The governor’s proclamation will be presented on Thursday, May 10, 2007, during the 3^rd Annual Fraud Fighters Award luncheon at the Holiday Inn Select Koger Center South, 1021 Koger Center Blvd., Richmond.   Law enforcement officials, insurance investigators and the legal community will receive special recognition for their efforts in going the extra mile to “stamp out fraud” in Virginia. The Fraud Fighters luncheon will be held in conjunction with the Virginia Chapter of the International Association of Special Investigation Units (VAIASIU) annual seminar.

“Insurance Fraud Awareness Week” is an annual event designed to raise community awareness of insurance fraud, create more widespread public knowledge of the IFP and its purpose, and educate Virginia citizens in the prevention and reporting of insurance fraud.

The Virginia State Police is committed to “Stamp Out” insurance fraud occurring in the commonwealth. 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 on the toll-free hotline at 1-877-62FRAUD (1-877-623-7283) or at www.StampOutFraud.com. Tipsters can remain anonymous, and a reward of up to $25,000 is available for information leading to an arrest for the crime of insurance fraud.