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Figures released by the Association of British Insurers have shown that insurers exposed £1.3 billion ($2.17 billion) worth of fraudulent claims in 2013, representing an 18% rise in value on 2012, WalesOnline reported.
Around 118,500 fake or overstated claims were detected during the year.
The association also said there was a "significant" increase in the number of people calling to report suspected fraudsters, WalesOnline reported.
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