An insurance fraud is any deed committed with the intent to falsely obtain payment from an insurer. Ever since the beginning of insurance, fraud has existed. There are diverse kinds of insurance scams that account for a considerable portion of claims received by insurers and costing billions of dollars every year.

Moreover, fraudulent activities has affected lives of innocent people, directly or accidental. This kind of fraud poses a major problem and the government and other organizations are finding ways to deter these activities. Depending on certain issues involved, a wrongful act could be handles as administrative action by the Department or a criminal matter by the Fraud Division.

Cases investigated usually involve criminal deeds involving vehicle property, worker’s compensation, personal injury, health insurance and commercial and residential property claims. Some insurance scams that are investigated include automobile property, automobile collision, life, medical, fire, property and others. To avoid falling prey to these scams, you should be alert of warning signs. When it comes to insurance, make sure that you shop around and understand the various kinds of insurance available. Investigate thoroughly the policies and the company itself before paying money. Determine if you need a specific kind of coverage or a coverage amount.