A Message from Attorney General Charlie Condon:

Statistics on the occurrence of insurance fraud are shocking for two reasons. First, they reveal the high cost of insurance fraud to all policy holders. Second, they expose the level of public tolerance for such criminal activity. It's bad enough to know that the average out-of-pocket could be reduced by almost $1,000 if we could put and end to insurance fraud. It's worse to realize that almost one-third of the American people think it's "all right" to commit such a crime.

As Attorney General of South Carolina, I assure you that we have zero tolerance for insurance scams in this state. Recently we formed a special unit to investigate and prosecute these crimes. In addition, we installed a hotline devoted exclusively to receiving reports concerning insurance fraud. If you're aware of anyone who is bilking insurance companies, please let us know. Your name will be held in strictest confidence.

Together we can reduce the amount of insurance fraud in our state and in so doing reduce future premiums for all South Carolinians.

$1,030 per year, that's what the average American household pays every year in out-of-pocket-costs as a result of insurance fraud!

If insurance fraud was a business, it would be a top Fortune 500 company. Auto, home and business insurance fraud cost Americans more than $85 billion a year.

Fraud could be as simple as misrepresenting facts on an insurance application or "padding " or inflating actual claims or as serious as submitting claims for injuries or damage that never occurred and "staging" accidents. At least 10% of all auto, home and business insurance claims are either fraudulent or highly inflated.

Research indicates that the public's attitude about insurance fraud has grown increasingly tolerant in recent years. Studies show that 1 in 3 Americans believe it is "all right" to pad claims to make up for premiums paid in previous years when they had no claims. Most people think that fraud is a victimless crime, but You Are the Victim. Insurance fraud directly affects the amount you pay for health, auto and homeowner's insurance and increases the prices you pay for goods and services.

A new program in South Carolina will help you stamp out insurance fraud and hold down premiums for you and others: The South Carolina Insurance Fraud Hotline.

South Carolina Attorney General Charlie Condon's Insurance Fraud Division, in conjunction with the Professional Insurance Agents of South Carolina and the South Carolina Insurance News Service, has established the Insurance Fraud Hotline, available 24 hours a day.

South Carolina has a mandatory reporting act that states "...any person, insurer or authorized agency having reason to believe that another has made a false statement or misrepresentation or has knowledge of a suspected false statement or misrepresentation shall, for purpose of reporting and investigation, notify the Insurance Fraud Division of the Office of the Attorney General of the knowledge or belief and provide any additional information within his possession relative thereto."

If you suspect someone has committed any type of insurance fraud, call the South Carolina Insurance Fraud Hotline toll free. You don't have to reveal your identity.

Seven of the Most Common Types of Insurance Fraud:

• Under reporting the number of miles you drive on your auto policy.

• Failing to report an accurate medical history when applying for health insurance.

• An employee of a company who fakes or exaggerates injuries to avoid work and draws workers' compensation payout.

• An auto accident victim who falsifies or overstates injuries--or even fakes the accident--to achieve a large settlement or award.

• Staging automobile accidents which result in inflated injury claims.

• An insured who draws accident and health insurance benefits because of exaggerated or even fabricated injuries or illness.

• Exaggerating the amount and value of items stolen from a home or business.