The Arkansas Insurance Department Criminal Investigation Division (CID) was created by the State Legislature in 1993 to investigate workers' compensation fraud. In 1997, the Legislature expanded our mandate to include all other types of insurance fraud. In 2001, the Legislature gave the division law enforcement status. That means CID investigators carry weapons, serve warrants, and have the power to arrest suspects.

What is insurance fraud?

Insurance fraud is an intentional deception committed by applicants, policy holders, claimants, providers, agents and company employees. It may occur during the process of buying, using, selling or underwriting insurance, and is usually motivated by greed.

Common reasons why people commit insurance fraud.

People who normally would not engage in criminal behavior commit insurance fraud because they:

•Perceive it as a victimless crime perpetrated against a faceless insurance company.

•Hope to make up for premiums they have paid in the past.

•Think many people inflate or falsify insurance claims.

•Believe they will not get caught.

•See it as a quick and easy way to make money.

Who pays for insurance fraud?

Insurance fraud is not a victimless crime. Every year thousands of Americans fall prey to the schemes that cost them their hard earned money. It is estimated that insurance fraud costs Americans 80 to 120 billion dollars a year. That means that each family in America has paid close to $1,000 out of their own pocket due to insurance fraud. Please help us fight insurance fraud in Arkansas by reporting suspected insurance fraud.

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