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False Insurance Claims Insurance fraud is a serious issue. The Coalition Against Insurance Fraud estimates that nearly $80 billion in fraudulent claims are made in the United States each year. Add to that the number of incidents that go undetected and unreported. Insurance fraud is perpetrated on all lines of insurance. Insurance fraud affects both the insurers and the insured economically and, potentially, violently. Bogus claims and fraud prevention costs insurers billions a year. This cost often trickles down to the consumer through higher insurance premiums. At its extreme, fraud can involve personal injury, serious property damage, or even murder.
