Fraud bureaus are state agencies charged with investigating suspected insurance schemes within their states. Most states have fraud bureaus, which investigate suspected schemes across most line of insurance. States without multi-line fraud bureaus include: Alabama, Illinois, Indiana, Maine, Michigan, Oregon, Vermont, Wisconsin and Wyoming.
• 41 States have enacted legislation to create insurance fraud bureaus.
• The oldest (North Carolina) was created in 1976.
• In 2010, fraud bureaus employed more than 1,400 people, including nearly 900 investigators.
• 110 dedicated prosecutors are assigned to fraud bureaus to prosecute fraud exclusively.
• Combined, fraud bureau budgets total more than $150 million.
• Most fraud bureaus are funded through direct assessment on insurance companies licensed in the state. Others are funded through other agencies and by general funds.
• In addition to many fraud bureaus having full police powers, about half also have civil fining authority.
• Most fraud bureaus have jurisdiction to investigate fraud involving all lines of insurance although some are limited to only workers compensation or auto insurance. 35 states investigate healthcare fraud.
• In 2010, fraud bureaus received more than 132,000 case referrals from insurers, other law enforcement agencies and consumers.
• More than 45,000 cases were opened for investigation, and more than 4,200 arrests were made in 2010. In addition, nearly 2,000 civil actions were taken.
• Nearly 5,000 convictions were obtained for insurance fraud in 2010.
• More than $346 million in restitution was ordered from cases handled by fraud bureaus in 2010.
Source: Coalition Against Insurance Fraud, Study of State Insurance Fraud Agencies, 2011 For full article, visit: http://www.insurancefraud.org/statistics.htm#.VbANQipViko