Fraud Costs Americans Billions of Dollars Annually

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Nov 14, 2023, 13:13 ET

International Fraud Awareness Week Begins Nov. 12

DES PLAINES, Ill., Nov. 14, 2023 /PRNewswire/ -- Fraud is a pervasive and expensive problem that exacts a heavy toll on both individuals and businesses. According to a study conducted by the Association of Certified Fraud Examiners (ACFE), fraud costs organizations worldwide an estimated 5 percent of their annual revenues, which amounts to billions of dollars every year. These crimes drain government resources, erode public trust, and inflict financial and emotional harm on its victims. As part of International Fraud Awareness Week, the National Insurance Crime Bureau (NICB), the nation's leading not-for-profit organization dedicated to combatting and preventing insurance crime, is encouraging the public to educate themselves about the latest fraud trends in order to prevent becoming a victim.

"As fraud tactics and the criminals behind them continue to evolve and become increasingly more sophisticated, the need for heightened awareness, education, and effective prevention measures is more important than ever," said David J. Glawe, President and CEO of the National Insurance Crime Bureau. "By understanding the far-reaching implications of fraud and taking proactive steps to prevent it, individuals and businesses can limit their exposure to this threat and reduce the heavy financial toll it imposes on all of us."

Glawe noted that while advancements in technology have allowed new opportunities for fraudsters, they have also provided innovative solutions to combat fraud. Artificial intelligence, machine learning and advances in data analytics offer powerful tools for detecting and preventing fraud, with the use of these new technologies expected to double over the next two years.

"Fraud is an issue that unfortunately affects people from all walks of life around the world and it takes many forms," said ACFE president John Gill, J.D., CFE. "Whether it's a trusted employee stealing from a small business, or organized rings of fraudsters targeting seniors in our community, most people know someone who's been victimized by fraud. That's why it's so important for organizations to join in this fight together to raise awareness during this week. It is a serious problem that requires a proactive approach toward preventing it and educating people is the first step."

Governments and businesses can work together to develop strategies to combat fraud effectively and ensure criminals are brought to justice. Strengthening fraud detection and prevention is crucial in both the public and private sectors. By establishing and enforcing tough new laws and regulations that deter fraudulent activities, government agencies can ensure the swift and effective prosecution of these criminals. Additionally, each state offers fraud reporting hotlines where consumers can report these illegal activities. Individuals can also call 800.TEL.NICB or visit NICB.org to report insurance fraud.

For more information about increasing awareness and reducing the risk of fraud, visit FraudWeek.com.

ABOUT THE NATIONAL INSURANCE CRIME BUREAU: Headquartered in Des Plaines, Ill., the National Insurance Crime Bureau (NICB) is the nation's leading not-for-profit organization exclusively dedicated to combatting and preventing insurance crime through Intelligence, Analytics, and Operations; Education and Crime Prevention; and Strategy, Policy, and Advocacy. NICB membership includes more than 1,200 property-casualty insurance companies, vehicle rental companies, auto auctions, vehicle finance companies and self-insured organizations. NICB member companies wrote over $582 billion in insurance premiums in 2021, or more than 82% of the nation's property-casualty insurance. That includes more than 96% of the nation's personal auto insurance. To learn more, visit www.nicb.org.

SOURCE National Insurance Crime Bureau