Insurance fraud is bigger than ever, and scammers constantly are coming up with new wrinkles. Along with the tried-and-true staged auto crashes, arson and simple claims padding, more sophisticated scammers are taking advantage of ubiquitous technology and changes in the law by creating fake websites for healthcare sales—with healthcare reform spawning a whole new breed of crooks.
As the guys on the front lines, insurance agents are in a unique position to spot insurance fraud as it's happening—and can play a powerful role in stopping it before it starts.
Conservative guesses put the cost of fraud across all lines at $80 billion a year, said Jim Quiggle of the Coalition Against Insurance Fraud (CAIF). The Aite Group estimates it at about $70 billion for property-casualty fraud alone, with the standard rule of thumb being that 10 percent of every claims dollar goes to fraud.
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