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Insurance Fraud Conviction on the Rise

February 20, 2004  | 

More and more people are trying to cash in by claiming injuries after staging a car crash. State insurance fraud bureaus are dealing with an increase of about 31 percent in criminal fraud conviction in 2002, according to a study by the Coalition Against Insurance Fraud.

New York, New Jersey and Florida are facing major problems with violent car crashes staged by large, organized gangs who then make fake injury claims against insurance companies.

These kinds of scams can happen any time and place and often involve, injure, and even kill innocent people.

Insurance fraud crimes drive up insurance premiums in cities and states across the country.

Other fraud trends include phony group health coverage being sold to small businesses, scams by dishonest insurance agents stealing the client premiums for personal use and insurance scams against seniors.

The coalition’s study of 43 fraud bureaus also revealed that in 2002 fraud bureaus referred 14 percent more cases for prosecution and fraud investigations spiked nearly 18 percent.

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