COLUMBUS – An insurance fraud scheme committed after an auto accident or property damage is trending in Ohio and it can have impacts on the cost of insurance for consumers, Ohio Department of Insurance director Judith L. French announced.
Named the “past posting” scheme, the term describes the action of a person attempting to secure insurance after an incident in which they did not have coverage or making it appear they had insurance when the incident occurred, such as by manipulating paperwork.
“A person may assume that insurance fraud is a victimless crime and that there are no serious consequences for committing it,” French said. “This type of scheme is insurance fraud, which is illegal and punishable by financial penalty and time in jail. Insurance fraud increases how much Ohioans pay for insurance.”
The Coalition Against Insurance Fraud estimates that the economic impact of insurance fraud is a $308.6 billion annual cost to U.S. consumers and businesses, equaling about $932 annually for every American and more than $70,000 over a person’s lifetime.
The Ohio Department of Insurance monitors the state’s insurance marketplace for insurance fraud. From July 1, 2021, to June 30, 2022, it received more than 7,433 allegations of insurance fraud and insurance agent misconduct, opened 1,116 administrative and criminal investigations, identified 132 potential law violations, and took administrative and/or criminal action against 162 individuals.
Allegations of insurance fraud can be reported to 800-686-1527 and insurance.ohio.gov.