Unfortunately, workers' compensation fraud has been on the rise. The poor state of the U.S. economy is certainly a factor in addition to the mortgage meltdown and government cutbacks. Even rising student debt in this environment is placing pressure on young people. Equally unfortunate are those who see fraud as a solution to their challenges. Many consider it easy money and are simply clueless to the potential consequences. There are also plenty of examples of sophisticated cases that require careful and persistent digging.

Insurers write more than $1 trillion in insurance premiums annually according to the Federal Bureau of Investigation (FBI), providing significant opportunities for fraud to be perpetrated. The FBI estimates the total cost of non-health insurance-related fraud to be more than $40 billion per year, costing the average U.S. family an estimated $400 to $700 per year in increased premiums.

The National Insurance Crime bureau says that Workers' Compensation fraud accounts for approximately 25 percent of the fraud perpetrated, or approximately $7.2 billion annually and is one of the fastest growing areas of fraud. One insurance executive has said that “If Workers' Compensation fraud were a legitimate business, it would rank among Fortune 500 companies.”