In 2002, the state spent an average of $3,000 on each of its 98 insurance frauds, the report found. South Carolina had a 24 percent increase in investigations and an 18 percent increase in indictments from 2002.
The attorney general's office received 844 complaints of insurance fraud in 2003, with 44 percent focusing on auto insurance alone. The overall number of fraud complaints had decreased 7 percent from 2002.
McMaster said 2003 budget cuts forced the closing of the Greenville office used primarily for insurance fraud and the loss of fraud prosecutors. The office budget has been cut almost 30 percent in the last few years.
"This ranking is a testament to the dedication and Herculean effort put forth by our prosecutors and SLED agents fighting crime in the face of crippling budget cuts," McMaster said. "Our ultimate goal is to lead the nation in fewest incidents of insurance fraud, so we still have work to do."