According to the National Insurance Crime Bureau (NICB), cases of suspected fraud in the U.S. rose 27% from 2010 through 2012, producing more than 100,000 questionable claims. Fraud costs U.S. property-casualty insurers an estimated $30 billion annually.
Just look at one recent example that occurred in last month Miami: 22 people were charged in a major home insurance fraud ring totalling about $7.6 million in losses from various insurance companies. The ring staged at least 17 fake home damage incidents such as fires and floods, and false claim settlements were paid to the fraudsters.
This latest example of insurance fraud is just a ripple in the water. In 2012, home insurance fraud in the U.S. was the second most popular type of fraud, with 17,000 questionable claims made.
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