Idahoans Should be on the Alert for Increased Fraud Activity

Tougher economic times are often accompanied by an increase in fraudulent insurance and consumer activity. Idahoans need to be aware of these trends and take measures to protect themselves from fraud and scams.

Recent reports across the nation indicate that 2009 will be a busy year for fraud investigators.

Consumers in New Hampshire and Ohio reported receiving calls from strangers who pose as insurance company representatives. The callers threaten to cancel auto insurance policies if premium payments are not paid immediately and tell consumers to share bank account or other personal information.

Consumers can be caught off-guard and feel pressured to respond to the caller. Remember that you are in charge. Never give personal or financial information over the phone. Hang up. Report the call to the Idaho Department of Insurance.

The fraud unit of the Department has reported an increased number of insurance fraud cases in recent months. Arson and auto give-ups are on the rise. People who are facing financial difficulties are looking to fraud as a way out of their problems.

Progressive Insurance estimates that nearly one in ten Americans would commit insurance fraud if they knew they could get away with it and nearly three of ten Americans would not report insurance scams committed by someone they know.

Insurance fraud costs nearly $120 billion a year, with healthcare fraud at $85 billion a year and property and casualty insurance fraud at $30 billion a year, according to the Insurance Information Institute. Insurance fraud costs nearly $950 for each family, the Coalition Against Insurance Fraud estimates.

If you suspect fraud, call the Idaho Department of Insurance to report it. The number is 334-4250 in Boise, and 800-721-3272 toll-free statewide. Or call the fraud hotline, 866-939-7226.