Here's An Idea: Let A Friend Throw Away Your Tax Relief Check - Or Lie About An Insurance Claim ... It Amounts To The Same Thing

PROGRESSIVE LOGO
Progressive logo. (PRNewsFoto)[PM]
CLEVELAND, OH USA 06/29/2000
Insurance Fraud Costs Americans Over $20 billion a Year Yet Progressive Study
of More than 31,000 Americans Finds We're Willing To Cheat To Beat the System

    MAYFIELD VILLAGE, Ohio, Sept. 5 Would you be angry if a
friend took $300 from you and bought a new TV?  What if your friend took your
ATM card to fund a Friday night out?  Well, every day money is stolen right
out of your pocket by people committing little crimes that they might say
"everybody does" -- crimes that you don't do, but end up paying for.
    These crimes are wide ranging -- from stealing cable television to running
tollbooths to committing insurance fraud. To better understand how insurance
fraud compares to other indiscretions, Progressive Insurance
conducted a telephone survey of more than 31,000 Americans in May and June.
The survey asked respondents not only how likely they would be to commit
insurance fraud and other indiscretions if they knew they would not be caught,
but whether they would report someone they knew who had committed fraud.
    The results indicate that while most respondents are honest, a large
percentage are willing to cheat and commit crimes that cost the rest of us far
more money than we probably realize.
    In fact, one indiscretion, auto insurance fraud, costs all Americans $200
to $300 in increased insurance premiums each year, according to estimates from
the National Insurance Crime Bureau (NICB). It's no wonder -- according to the
survey, nine percent of all respondents -- that's nearly one in every ten of
us -- said they would commit insurance fraud if they knew they would not be
caught!
    The goal of the Special Investigative Units (SIUs) of leading insurance
companies is to help keep the cost of auto insurance down for all consumers by
fighting fraud. Progressive, the nation's fourth largest auto insurer, has
170 professionals who work with law enforcement agencies, the NICB and each
state's Department of Insurance to prosecute those who defraud the system. In
the past 18 months, Progressive has taken the lead in pursuing professional
organized medical fraud rings countrywide. Along with four other insurance
carriers, Progressive has filed four Federal Racketeer Influenced and Corrupt
Organization (RICO) civil suits alleging 120 individuals and medical providers
with fraud and seeking more than $130 million in restitution.
    Tom Kaschalk, national special investigations unit (SIU) leader for
Progressive said: "Consumers should be outraged by insurance fraud.  While
it's good to see that a majority of survey respondents said they would not
commit insurance fraud, the fact is that insurance fraud is the second most
costly white-collar crime in America. Only tax evasion is more costly. And
it's the honest consumer who's paying for it.  People need to be aware of
fraud, be willing to report it when they suspect it and be willing to get
involved to stop it."
    The survey found that when it comes to reporting fraud, 29 percent of
respondents said they would never report insurance fraud committed by someone
they knew. Respondents living in the Northeastern US were more likely than
respondents in any other part of the country to say they would never report
someone for insurance fraud (35 percent).  However, respondents throughout the
US were four times more likely to say they would report someone if there was a
monetary reward of up to $500 than if there was a reward of only $250.
Additionally, six (6) percent of respondents would report fraud only if they
didn't like the person who committed it.
    And it's not only insurance fraud that respondents admitted a willingness
to commit.  The survey also found that 13 percent of respondents admit they
would steal cable television. Another 13 percent would inflate accomplishments
on a resume. Twelve (12) percent would park in a space designated for a
handicapped driver.  Nine (9) percent would drive through a tollbooth without
paying and seven (7) percent would take tax deductions they weren't entitled
to.
    Consumers who wish to report fraud can call the National Insurance Crime
Bureau at 1-800-TEL-NICB (835-6422).
    Progressive Insurance , headquartered in Mayfield Village,
Ohio, is the nation's fourth largest auto insurance company.  In business
since 1937, the company provides all drivers with competitive rates and
24-hour, in-person and online services. The company sells its products over
the phone at 1-800-PROGRESSIVE(SM), online at progressive.com, and through
more than 30,000 independent agencies throughout the U.S. More information
about Progressive can be found at http://www.progressive.com .

                               Did You Know ...
       According to a countrywide survey by Progressive Auto Insurance

    -- Parking rules are not in effect - Part I
    Twelve (12) percent of respondents said they would park in a space
    designated for a handicapped driver if they knew they wouldn't be caught.
    Men were slightly more likely than women to say they would take advantage
    of the "close-in" parking.

    -- Parking rules are not in effect - Part II
    Respondents who live in the Northeast were more likely than respondents in
    any other part of the country to say they would park in a space designated
    for handicapped drivers.

    -- Youthful indiscretions
    A whopping 25 percent of respondents ages 18-24 - nearly twice as many as
    any other age group - said they would park in a space designated for
    handicapped drivers.

    -- A deflating statistic
    Six (6) percent of respondents said they would inflate an insurance claim
    if they knew they wouldn't get caught.

    -- Inflation hits the Northeast
    Respondents who live in the Northeast were more likely than respondents in
    any other area of the country to say they would inflate an insurance claim
    if they knew they wouldn't get caught.

    -- I must watch (and act like) the Sopranos
    Thirteen (13) percent of respondents said they would hook up cable
    illegally if they knew they wouldn't be caught, with men (16 percent) more
    likely than women (11 percent) to do so.  Respondents who live on the West
    Coast (17 percent) were more likely than respondents in any other area of
    the country to say they would hook up cable illegally.

    -- What Uncle Sam doesn't know won't hurt him
    Seven (7) percent of respondents said they would take additional tax
    deductions that they were not entitled to if they knew they wouldn't get
    caught.  Men were twice as likely as women to say they would take the
    extra deductions, and respondents on the West Coast were more likely to
    take additional tax deductions than respondents who live in any other part
    of the country.

    -- Where's the toll booth express lane?
    Nine (9) percent of respondents said they would drive through a tollbooth
    without paying if they knew they wouldn't get caught.  Men (12 percent)
    were more likely than women (7.5 percent) to say they would do so.

    -- Maybe sometimes you are smarter than your boss
    Thirteen (13) percent of respondents said they would inflate their
    accomplishments on a resume or job application.  Men (14 percent) were
    more likely than women (11.5 percent) to say they would do so.

    -- I'm an actor, not a waiter
    Eighteen (18) percent of respondents who live on the West Coast said they
    would inflate their accomplishments on a resume or job application, more
    than any other area of the country.

    -- Fraud=friends forever
    Twenty-nine (29) percent of respondents said they would never report
    insurance fraud committed by someone they knew.

    -- Keeping secrets
    Thirty-five (35) percent of respondents who live in the Northeast -- more
    than in any other region of the country -- said they would never report
    insurance fraud committed by someone they knew.

    -- Women Doing the Right Thing
    Women were more likely than men to say that they would always reported
    fraud if they knew the person who committed it.

    -- I'll tell - if the price is right
    When asked, "In which of the following situations would you be most likely
    to report insurance fraud committed by someone you know?" respondents were
    four times more likely to report someone if there was a monetary reward up
    to $500 than if the reward was up to $250.

    -- Plains Sensibility
    Fifty percent (50) of respondents who live in the Great Plains -- more
    than in any other area of the country -- said they would always report
    fraud, even if committed by someone they know.

    * Areas of the country delineated by:
      Northeast (CT, MA, ME, NH, NY, NJ, PA, RI, VT)
      Gulf (FL, AL, MS, LA)
      Midwest (IA, IL, IN, MI, MN, MO, OH, WI)
      Great Plains (CO, ID, KS, MT, ND, NE, NM, OK, SD, TX, UT, WY)
      West (AZ, AK, CA, HI, NV, OR, WA)
      Mid Atlantic (AR, DC, DE, GA, KY, MD, NC, SC, TN, VA, WV)

    CONTACT:
    Courtney Neville
    Progressive Insurance
    440-395-3032