Insurance Fraud Facts
What is insurance fraud?
Insurance fraud is any act of making money or attempting to make money from insurance transactions through cheating, lying, deceiving or stealing. In the United States, insurance fraud costs American consumers more than $80 billion each year.
How does insurance fraud affect me?
People who commit insurance fraud in Virginia collect millions of dollars from false claims each year and millions more in fraudulent claims are attempted. Insurance fraud costs Americans $80 billion each year and adds as much as $1,000 to the cost of goods and services. Even if you aren’t involved in an insurance fraud attempt, as an consumer you end up paying for it. For more statistics, view our annual reports and resources to learn more about how insurance fraud affects Virginia and how the Insurance Fraud Program is fighting to stamp out fraud.
What should I do if I suspect insurance fraud?
If you have suspicions about an act of insurance fraud, you can submit a confidential tip. Not only will your information help prevent insurance fraud that will have a negative financial impact on everyone, the information provided remains confidential and tips leading to arrests are eligible for rewards of up to $25,000. Another way to help stamp out insurance fraud is by educating yourself. Visit our prevention pages on Home and Renter’s Fraud, Vehicle-Related Fraud and Workers’ Compensation Fraud to learn signs of insurance fraud and some possible staged schemes that you may encounter. This information is valuable and can help you to protect yourself from becoming a victim of an insurance fraud scheme.
Am I ready to help Stamp Out Fraud?
Test your knowledge by taking the Stamp Out Fraud quiz! See if you can spot the signs of insurance fraud and if you know how to protect yourself and others from becoming victims.