Insurance fraud is a crime that occurs when someone tries to make money from insurance transactions through deception. Here are some examples of insurance fraud:
Property Fraud – occurs when someone exaggerates the amount of damage incurred to their home, vehicle or other possession; deliberately damages their possessions for reimbursement by the insurance company; or seeks reimbursement for a lost or stolen item that was neither lost nor stolen.
Casualty Fraud – occurs when someone fakes or exaggerates an accident or injury to receive money from an insurance company. “Slip-and-fall” cases are an example of this.
Worker’s Compensation Fraud – occurs when an employee claims to have suffered an injury while on the job and either didn’t suffer an injury at all, or received the injury while doing something non-work-related. Employers can also commit worker’s compensation fraud by understating the number of employees or the type of work they do.
For more information, read the Insurance Fraud Brochure, the Vehicle Insurance Fraud Brochure or the Homeowner's Insurance Fraud Brochure.
1, 2, 3 - Coalition Against Insurance Fraud, 2001; 4 - IFD Statewide Survey on Insurance Fraud by SIR, 2000; 5 - Insurance Research Council – 1996; 6 - National Fire Protection Association, 1998