The Cartel Connection: Linking Insurance Fraud, Drug Cartels and Terrorism

Insurance fraud is a growing global phenomenon. In the United States alone, it is estimated that insurance fraud is an $80 billion dollar industry, second only to narcotics trafficking. Not surprisingly the two are often connected. According to the Coalition Against Insurance Fraud (the Coalition), there has been an increase in organized transnational crime rings using insurance fraud as a vehicle to fund illegal activities. Compounding matters, it appears that terrorists are also capitalizing on these crimes to make a quick profit.

According to the Coalition, growing symbiotic connections among cartels trafficking drugs, terrorists, cyber thieves, mob syndicates and organized insurance fraud are utilizing one another’s skill sets to profit in the belly of the underworld. These syndicates often base their operations in third-world nations with broken laws and corrupt officials where they can have unfettered access to a lawless environment. Insurance fraud, even in developed countries, provides a relatively easy, low risk and highly profitable means by which international drug cartels and terrorist organizations can make money to fund other enterprises.