South Carolina’s Insurance Fraud Problem: What’s Going On?
Insurance fraud. It’s happening every day in South Carolina. Staged car crashes. Fake medical claims. Criminals are cashing in, and it’s costing all of us.
How bad is it? South Carolina ranks 15th in the nation for “questionable insurance claims.” That’s a big deal for a smaller state. It means we’re disproportionately high compared to others. Why? Fewer resources. Fewer investigators. And fraudsters know it.
How Are They Doing It?
The schemes are bold. Organized fraud rings are staging car accidents. They’re deliberately crashing into innocent drivers. Then, they file false injury claims. But it doesn’t stop there. These criminals steer victims to clinics that are part of their network. That’s where the real money is made. Fake treatments. Fake bills. Real payouts.
What’s the Cost to You?
Think insurance fraud doesn’t affect you? Think again. Fraud costs Americans over $300 billion every year. In South Carolina, it’s adding about $1,200 to your annual insurance premiums. That’s money straight out of your pocket. And it’s not just about the money. It’s about trust. Every fake claim makes it harder for honest people to get fair rates.
Why Is South Carolina a Target?
Here’s the problem: South Carolina has only seven—almost eight—investigators dedicated to fighting insurance fraud. That’s it. Compare that to Virginia. They’ve got 28 investigators for a population of over 8 million. We’re an easy target. Less risk of getting caught. More money for the fraudsters.
Joshua Underwood, Director of the Insurance Fraud Division, put it bluntly: “Right now, South Carolina is a prime target because they can make a lot of money, and we don’t have the resources to catch them.”
What’s Being Done?
The good news? Lawmakers are stepping up. A new task force at the South Carolina State House is tackling the issue. They’re listening to law enforcement and insurance companies. They’re working on legislation to increase resources for fraud investigation and prosecution.
Chief Mark Keel from the South Carolina Law Enforcement Division said it best: “We are committed to this. We want to continue to add investigators. We want to continue to prosecute these cases.”
Eric de Campos from the National Insurance Crime Bureau agrees. He believes South Carolina’s “fraud ecosystem” could improve dramatically with more resources. More investigators. Tougher laws. That’s the goal.
Why Does It Matter?
Insurance fraud isn’t a victimless crime. Every fake claim drives up costs for everyone else. Jeff Thordahl, Executive Director of the South Carolina Insurance Association, explained it clearly: “Every time insurers pay fraudulent or overinflated claims, those costs are ultimately borne by policyholders.”
So, what’s next? The task force is meeting again in July. This time, insurance companies will join the conversation. The hope? Real solutions. Lower premiums. And a safer South Carolina.
The Bottom Line
Insurance fraud is a big problem. But it’s not unbeatable. With more resources, tougher laws, and a commitment to justice, South Carolina can turn things around. It’s time to fight back. Because fraud doesn’t just hurt insurers—it hurts all of us.