More Insurance Companies Using Social Media to Identify Fraud

More insurance companies are using social media to catch fraud, according to a WUSA9 report.

If insurance company investigators believe a customer is engaging in fraud, the customer could face coverage cancellation or see premiums increase. Depending on the customer's privacy settings, insurance company investigators could see every Tweet, Facebook photo or MySpace update, according to the report.

According to the Insurance Information Institute, the practice of monitoring customers' social media pages makes everyone's premiums more expensive because the companies must allocate staff to watch for fraud.

The Insurance Information Institute said fraud costs the insurance industry and consumers around $30 million every year.

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