The state has received a record breaking number of allegations of fraudulent claims this year.
Officials in Ohio have reported the insurance news that there has been a notable increase to the amount of fraud that is occurring in the industry.
The scams are being blamed on the hard economic times and criminal activities in the state.
According to the most recent Ohio Department of Insurance news, the combined efforts of insurers, agents, customers, police, and other parties have already generated 4,022 fraud allegations in the state as of last Friday. This represents an increase of 10 percent over the figures from all of last year, and is a 25 percent increase over two years ago.
This insurance news represents record breaking fraud allegations within the Ohio.
Unfortunately, insurance news such as this is a major cause of increased costs to the families in the state, who must pay hundreds of dollars per year more in their premiums. Across the United States as a whole, fraud generates many billions of dollars in additional expenses from exaggerated or entirely fake claims, say federal and industry estimates.
Even though fraud is only a small percentage of the total number of claims that occur across the state and the country, this type of insurance news is among the most common types of white collar crime. Moreover, it can be very hard to spot, and challenging to prove.
In light of this insurance news, officials in Ohio have put out a request to anyone who has any knowledge of possible incidences of fraud to contact state officials. This is an important part of the process, as the authorities need any assistance that they can find in order to identify the fraud that is occurring on an increasing basis.
The public is also requested to report the insurance news of illegal activities that are performed by agencies and individual agents, as this can also generate significant risk and costs to customers. These problems affect not only the customers of those businesses and individuals, but to all policyholders as the expense associated with the fraudulent activities spreads throughout the industry.