Let us look at the other side of the coin. After finding out that insurance companies are able to increase profits by cheating and shortchanging its clients, homeowners are also capable of filing false or bloated claims and get away with it. Fraudulent acts on the part of the homeowner include arson, a fake burglary, staging an accident, submitting a false claim or inflating the amount of claim, or filing a claim that has been paid for by another insurance provider.

Insurance companies have their own in-house investigators, and these companies also partner with government and non-government organizations that focus on prosecution of insurance criminals. Some of these are:

National Insurance Crime Bureau
Insurance Fraud Bureau
Insurance Fraud Investigators Group
Quackwatch http://www.quackwatch.com/
International Association of Insurance Fraud Agencies, Inc.

(source)