Following Ohio Gov. Mike DeWine’s designation of April as Fraud Prevention Month in the state, Ohio Department of Insurance Director Judith French is urging residents to safeguard against insurance fraud, which is estimated to cost consumers and businesses billions annually.
The Coalition Against Insurance Fraud estimates that insurance fraud constitutes a $308.6 billion economic burden, averaging $932 per American and more than $70,000 per lifetime.
The Ohio Department of Insurance, which collaborates with insurance investigators, law enforcement and prosecutors to combat fraud, received 9,014 allegations last year. These tips led to 1,208 investigations, identifying 215 potential law violations, with the department taking action against 226 individuals.
In an April 2 bulletin, French warned against commonly-encountered scams, including bogus policies from fake companies or agents, premium diversion by dishonest agents and contractor scams in which dishonest contractors inflate costs or perform poor work on insurance claims. Consumers can also commit fraud, often by inflating claims, misrepresenting facts or providing false information on applications.
To outsmart scammers, individuals are encouraged to check contact information, verify documentation, guard personal information, research before making payments, verify licenses through the Ohio Department of Insurance and confirm payments directly with insurance companies.
Suspected insurance fraud can be reported by contacting the Ohio Department of Insurance at 800-686-1527 and [email protected].
"Insurance fraud occurs in many forms and impacts all of us by making insurance more expensive," French said in a press release. "I encourage Ohioans to learn the warning signs. Anyone who suspects fraud or has been victimized should report it to the Ohio Department of Insurance. Perpetrators can face financial penalties, imprisonment and a permanent criminal record."