In my experience working in an insurance claims department, we overlooked a lot of fraud, intentionally. Usually, only the large, extremely obvious cases with p

In my experience working in an insurance claims department, we overlooked a lot of fraud, intentionally. Usually, only the large, extremely obvious cases with plenty of evidence were pursued. I believe a lot of the soft fraud involving slightly inflated claims went undetected. Part of this is because you have to pay the salaries of the investigators, so there is a cost of detection. It's not worth recovering an amount that is less than the cost of an investigation. Secondly, a company will lose customers if it has a reputation for having too many false positives or a default stance of mistrust of their policyholders.