Which one of the following statements about insurance fraud is NOT correct?

The correct answer highlights a common misconception regarding insurance fraud. While it's true that some instances of insurance fraud can be detected, the complexity and subtlety involved in many fraudulent schemes often make them difficult to identify. Fraudsters may employ sophisticated tactics that can mask their activities, leading to a lower detection rate than one might expect.

In contrast, the other statements accurately reflect the nature and impact of insurance fraud. It is often described as a victimless crime because it may seem like a crime against an insurance company, but in reality, the repercussions affect all policyholders through increased premiums and reduced trust in the insurance system. Moreover, the societal consequences of insurance fraud are significant; it can lead to increased costs in the healthcare system, higher premiums for honest policyholders, and can even undermine the financial stability of insurance companies as a whole. Lastly, as fraudulent claims contribute to rising insurance costs, consumers ultimately bear the burden through elevated premiums, illustrating the broader impact of fraud on society.