The Insurance Information Institute estimates that the annual cost of insurance fraud is between $85-$120 billion a year. This translates to approximately $5,000 extra per year, per family for the added costs of goods and services to make up for this fraudulent activity. Studies and working experience show that workers' compensation is one of the sectors that is believed to be most vulnerable to fraud.

Insurance fraud is a full-time job for many people who spend their time and energy devising schemes to rip off the system. All insurers are at risk and must be equipped to detect and investigate fraudulent activity. It is imperative that the insurance community remains vigilant in the pursuit of insurance fraud by attempting to stay one step ahead of insurance criminals.

The way to protect your company from fraud is to be aware of the current warning signs and make sure that you are taking all the necessary steps in managing your cases. Here is a list of tips to help claim adjusters crack down on insurance fraud.

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