PA Insurance Fraud Prevention Authority: Fighting Insurance Fraud

About IFPA Fraud
The Pennsylvania Insurance Fraud Prevention Authority (IFPA) was created by an Act of
the Pennsylvania General Assembly in 1995. This Act established IFPA as an independent
Commonwealth agency whose sole purpose is to combat insurance fraud throughout the
state.
Mission
Since the IFPA’s inception, the organization has evolved into a highly collaborative network
that enlists the talents of some of our Commonwealth’s most experienced fraud-fighting
professionals.
The IFPA mission is three-fold. The Authority helps provide law enforcement and
prosecutors the necessary resources to fight insurance fraud in the Commonwealth, works
to prevent consumer fraud through public awareness, and advises the Governor and the
General Assembly on the nature and scope of the insurance fraud problem in Pennsylvania.

Strategy
The Pennsylvania Insurance Fraud Protection Authority is funded by annual assessments
levied on all insurance companies that write policies within our state. While the IFPA’s
work benefits all citizens of Pennsylvania‚ no taxpayer dollars are used to support its
efforts.
The majority of the IFPA’s budget is directed toward funding fraud–fighting units that
investigate and prosecute insurance fraud. Currently‚ the IFPA commits $12.5 million
annually to the support of 14 law enforcement agencies throughout the state. The IFPA also
invests a half-million dollars each year in fraud prevention initiatives‚ such as public
education to discourage instances of opportunistic fraud before they even occur.
Effectiveness
The IFPA’s strategic allocation of resources has paid dividends in the fight against
insurance fraud in Pennsylvania.
The Authority’s support of enforcement efforts has had a significant impact in identifying
and prosecuting those who commit insurance fraud. Since 1996‚ IFPA–funded units have
been responsible for:
6,224 arrests
3,713 convictions
1,681 Accelerated Rehabilitative Dispositions (ARD)
over $2.6 million in court–ordered fines
$2.4 million in civil penalties
$56.4 million in restitution
(Information presented is current through December 2013)
The IFPA’s public outreach and educations have also been beneficial to the Commonwealth.
Research has been undertaken to track public awareness of the issue of insurance fraud
and identify pockets of opportunity within our state’s population where opportunistic
fraud can be effectively discouraged. In June 2009‚ the IFPA developed and launched a new
prevention campaign which is being monitored for its effectiveness toward this end
through regular follow-up research.
Investigative Units
The IFPA’s rationale for supporting law enforcement is simple‚ yet strategic. This funding
supports the professionals who aggressively investigate and prosecute insurance fraud
criminals. That’s precisely why the selected insurance fraud units receive financial
resources from the IFPA for personnel‚ training‚ equipment and expenses.

These include an Insurance Fraud Section in the Pennsylvania Office of Attorney General
and an insurance fraud unit in the Philadelphia District Attorney’s Office‚ as well as other
state and local level fraud prosecution and fraud prevention programs.
Grants fund insurance fraud units in Allegheny‚ Cumberland‚ Delaware‚ Erie‚ Lehigh‚
Montgomery, Philadelphia and York counties‚ as well as a Lackawanna County task force
covering eleven northeastern counties. The IFPA also extends grants to the Pennsylvania
State Police and the Dauphin County District Attorney to support arson investigations and
to the Pennsylvania Insurance Department to support examinations of the anti–fraud
programs of insurers.