Insurance fraud is crime that affects everyone and costs Americans at least $80 billion a year, or nearly $950 for each family. Insurance fraud pushes up the cost of everything you buy and use. How? Consider the following scenario: Every company providing goods or services pays for insurance as a cost of doing business. As a result of insurance fraud, the insurance company must raise rates. To cover the increased cost of insurance, the company must charge you more for goods and services. Bottom line – insurance fraud makes everything more expensive for everybody. Insurance fraud is not simply a problem for insurance companies, it’s a problem for all of us – everybody loses and everybody pays. Insurance fraud also diverts resources from law enforcement and fire services.
If you suspect an insurance scheme or believe that you have information regarding possible fraudulent activities, you can report it safely, easily and, in most cases, anonymously. Suspected fraud can be reported to Department of Insurance and Financial Services (DIFS) using the National Insurance Commissioners Association’s (NAIC) online fraud reporting system (OFRS). The OFRS database functions as the repository for insurance fraud information for DIFS.