Staged accidents are on the rise globally. While the insurance industry has always been a magnet for fraud, the ability to stage accidents (and successfully get paid) makes it a multi-billion-dollar proposition.

According to a May 2009 study by the Insurance Information Institute (I.I.I.), U.S. insurers incurred $30 billion in losses and loss adjustment expenses (LAE) as the result of fraud, which accounts for about 10 percent of all claims.

One of the most effective scams has been variations of staged accidents. These types of claims are tough to fight. Insurers often end up making payments because they simply lack the time or resources to prove the fraud. In states such as Florida, insurers are further hamstrung by bad faith laws that can impose significant financial penalties in the event of a wrongful denial.