Fraud hurts everyone. Not just the insurance companies affected but every citizen. Some estimates indicate that insurance fraud in total costs $30 billion per year. Think about that figure and how it relates to other devastating costs. To put this in perspective some of our most costly disasters (prior to hurricane Katrina) cost less than fraud costs each and every year. Some reported that hurricane Andrew cost $30 billion. Hurricanes are predictable but not preventable; Fraud however is predictable and preventable in many cases.
Estimates of fraud costs just for vehicle and homeowners insurance premiums are $250 per year per household. Other estimates indicate that 15% of our Auto and Homeowners insurance payment goes towards paying fraudulent claims.
Sport compact vehicles continue to lead the pack in claims and thefts, costing the insurance industry millions of dollars each year. Questionable body shops contribute to millions of dollars in fraud, both directly and indirectly. Additional costs affect law enforcement in time and inflated stats as many of the reports for theft and vandalism are false. Fictitious claims estimates range from 10 to 25 percent on average and 50 percent and more in certain areas or classes such as the sport compact scene. This epidemic of false claims is fueled by the Street, Show, Drift, Drag and modified vehicle scene as depicted in recent popular movies which tend to glorify this lifestyle and culture.
We work with investigators throughout the world in order to predict and prevent upcoming scams. Prior to the Internet it would take 7 years for a theft trend to reach across the United States. With the Internet and today's mobility it has gone from 7 years to 7 seconds.
