Insurance Fraud Arrests and Convictions on the Rise in Virginia

March 3, 2009

The Insurance Fraud Program (IFP) of the Virginia State Police said it made 307 arrests for insurance fraud last year — a 47 percent increase over the previous year.

In addition, convictions for insurance fraud in 2008 saw a dramatic increase, from 39 to 174, primarily due to two cases that resulted in more than 100 combined convictions.

Investigators credit some of the IFP’s increased effectiveness to the use Internet social networking tools — from services such as Facebook and YouTube, to its own recently redesigned Web site StampOutFraud.com

“I’m excited about this new approach to raising public awareness about insurance fraud and its potential as another resource for fighting fraud,” said Lieutenant W. Roger Rector, coordinator of the IFP. “The IFP has had some great success stories over the past ten years, and I look forward to our continued successes.”

The fraud investigation unit was started in 1999.

Over the past decade, the courts have ordered more than $13 million in restitution for convictions through the IFP. In addition, the IFP has awarded $48,750 to tipsters whose information about suspected insurance fraud led to an arrest.

Experts say insurance fraud adds as much as $1,000 per Virginia household to the cost of goods, and between $200 and $1,000 per year in additional premiums due to fraudulent insurance claims.

Click here to download the IFP’s 2008 Annual Report.
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Source: Virginia State Police

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