People who make fraudulent insurance claims could face a prison sentence.
According to a new report from the Motor Insurers' Bureau of Ireland, as many as 1 in every 8 insurance claims they handle are 'suspicious'.
The Department of Justice is looking to crack down on those who lie about their claims.
CEO of Motor Insurers' Bureau of Ireland David Fitzgerald has said there has been an increase in bogus cases.
"We believe it is a growing problem and we are increasing the resources for the area and taking a harder line," he said.
"We are prepared to invest money now for the long-term, in terms of resources and technology.
"We are prepared to spending the money on fighting these cases."