October is New Jersey Anti-Fraud Awareness Month

Fraud Awareness

Report suspected fraudulent claim activity: 1-888-NJM-4INS (1-888-656-4467), ext. 5650

To help combat the crime of insurance fraud, the New Jersey Office of the Insurance Fraud Prosecutor (OIFP) has designated October as "Anti-Fraud Awareness Month."

Insurance fraud can take many forms – from lying on an insurance application, to overstating claim damage, even to staging accidents. It may seem like a victimless crime, but the reality is much different.

The total cost of insurance fraud is at least $80 billion every year! To put that amount into perspective, with $80 billion, you could pay:

  • salaries of 2.2 million American workers for a year.
  • all personal income taxes for 7.4 million Americans for a year.
  • tuition for nearly 15.6 million students at America's four–year public universities for a year.
  • healthcare costs for nearly two out of every three seniors aged 65 and over for a year.

In New Jersey, the penalties for fraud can include loss of driver’s license, fines and prison time. According to the OIFP, last year, 80% of defendants prosecuted for insurance fraud in the Garden State received a prison sentence of one or more years.