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It’s no secret that fraud in the property/casualty realm is a rampant problem. Whether it’s hard fraud involving staged auto accidents or property arson or soft fraud that is opportunistically executed by a claimant who exaggerates a legitimate claim, fraud is a crime the Insurance Information Institute estimates costs the property/casualty industry more than $30 billion in 2005 and also is responsible for increasing aggregate policyholder premiums.

What often is not talked about, however, are the cases involving claim adjusters who cross over into the criminal realm and conspire to benefit from their positions, blurring the line between the opportunity and forethought definitions of hard and soft fraud. Just how prevalent this problem is remains unclear, but here are a three cases involving claim adjusters who tried to work the system and failed:

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