Losses from workers' compensation insurance fraud amount to more than $5 billion every year for carriers, according to the National Insurance Crime Bureau. Such fraud also was among the most common insurance complaints in Pennsylvania during the second quarter of 2010. "As workers' comp insurance fraud increases, so do the losses and the premium amounts that businesses must pay; this can be very damaging to any business, but especially small businesses," said Ralph Burnham, executive director of the state Insurance Fraud Prevention Authority.

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