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Fraudulent claims account for a significant portion of all claims received by insurers, and cost billions of dollars annually.

An Internet fraud (online scam) is the use of Internet services or software with Internet access to defraud victims or to otherwise take advantage of them; for example, by stealing personal information, which can even lead to identity theft.

Internet services can be used to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme.

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Research suggests that online scams can happen through social engineering regarding a surge in the quantity and quality of the forging of U. postal money orders, and its use to commit online fraud.

In the United States of America, the penalty for making or using counterfeit postal money orders is up to ten years in jail and/or a ,000 fine.

Insurance crimes also range in severity, from slightly exaggerating claims to deliberately causing accidents or damage.

Fraudulent activities affect the lives of innocent people, both directly through accidental or intentional injury or damage, and indirectly as these crimes cause insurance premiums to be higher.

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