Auto insurance

This is one of the all-time classics. You've been meaning to get comprehensive coverage for awhile now, but never got around to it. Unfortunately, a tree branch just fell on your car, breaking the windshield and severely denting the hood. So, you call your auto insurance company and add comprehensive coverage, then file a claim a few days later. The problem? During the investigation, the SIU finds out you started calling body shops to get estimates before you had comprehensive coverage. Not a good situation for you.

These are just a few of the ways an insurance company's SIU can catch fraud. They also work with law enforcement, state departments of insurance, and the justice system to identify insurance fraud and assist in prosecuting the offenders. Many companies have computer programs that flag suspicious claims for review by the SIU. If you're caught, penalties can range from denial of your claims, to cancellation of your car insurance policy, to possible fines or jail time. In other words, it's not worth it.

If you suspect a person or group is committing insurance fraud, you can report it to the police, your insurance company, or the National Insurance Crime Bureau. You might even get a reward.

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Insurance fraud is becoming more frequent as people look for "creative" ways to make money in the struggling economy. Insurance companies find that people file more claims in a down economy, often for smaller amounts. And, fraud is an increasing problem. With so many claims for car insurance companies to process, it may seem like a fraudulent claim can slip through unnoticed. Not so.

Just like the team on CSI uses advanced techniques to analyze evidence and figure out what happened, an insurance company's Special Investigations Unit or SIU—which often includes reps with law enforcement experience—conducts a thorough investigation to detect fraud. (Please note that Insurance.com reminds consumers that insurance fraud is illegal and a very bad idea.) Here are a few things fraudsters try to get away with—and why it's rare that they will: