Insurance fraud is one of the most widely-committed forms of fraud. Fraud is defined as the act committed when someone lies or deceives another party for personal gain or benefit. One performs insurance fraud when he or she lies to illegitimately receive money from an insurance company.
Every year, insurance fraud costs the United States $96 billion. Due to the gravity of this act, it is considered a crime in every state except Oregon and Virginia. Here in California, insurance fraud is considered a felony, and is therefore punishable by law to quite a severe degree.
Insurance fraud comes in many different forms, and can be carried out against any type of provider. The most common categories are the following:
- Automobile collision and property
- Worker’s Compensation
There are obviously other insurance forms out there, and anyone who is insured by them can file false claims in order to deceive the providing companies.
Several organizations have formed in an effort to tackle this criminal act, since it is difficult to accumulate and organize information regarding this form of fraud. In California, the CDI (California Department of Insurance) has specific branches in place to investigate and tackle this problem.
Since fraud is considered a felony in California, it is punishable by law. If you or someone you know has been accused of insurance fraud, the San Jose criminal defense attorneys of the Law Office of Daniel Jensen, P.C. can help you. Please do not hesitate to contact us at (408) 493-0082 today.