The Coalition Against Insurance Fraud  estimates that insurance fraudsters steal at least $80 billion worth of insurance payouts every year. Surprisingly, insurance fraud is still often viewed as a victimless offense. In actuality, insurance fraud does not just affect insurance companies, but also costs the average household between $400 and $700 in increased insurance premiums annually, not including health insurance fraud.

The true cost of fraud is difficult to nail down because claims could be inflated, staged or even completely fabricated. In order to mitigate these damages, state insurance commissioners launch investigations into alleged fraudsters and eventually file charges and seek their arrests. It can often take months, if not years, for law enforcement to track down alleged insurance fraudsters who fail to appear in court.

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