- Home
- About Us
- Insurance Fraud Division
- Types of Fraud
Types of Fraud
- Automobile: An individual who is or is not involved in a collision claims pre-existing damage, fabricates or exaggerates injuries, or inflates repair costs. Individuals may also plan thefts to sell, destroy, or strip a vehicle for parts.
- Click here to determine if a vehicle may have been involved in an insurance theft claim.
- Disability: An individual who is receiving benefits fabricates or exaggerates injuries, forges medical bills, or conceals their employment or income status.
- Health/Medical: A medical facility overbills, bills for services not rendered, or performs excessive tests and procedures. Individuals may use another individual’s health insurance for themselves to receive medical treatment.
- Homeowners/Property: An individual claims pre-existing damage, pads the value of damaged or lost property, plans a burglary, or fabricates supporting evidence, such as receipts and repair bills.
- Life: An individual withholds information on an application, changes the beneficiary, or enrolls someone without their knowledge or consent.
- Workers Compensation: An employee who is injured or claims to be injured reports prior, fabricated, or exaggerated injuries to be medically treated and collect for lost wages.
- Agent: An agent who pockets premiums, submits unauthorized policy changes or “upgrades,” creates fictitious customer accounts, or terminates policies without the knowledge or consent of the policyholder. An unlicensed agent sells products and services without meeting the state’s requirements.
- Click here to determine if an agent is licensed.
- Fire/Arson: An individual intentionally sets fire to a vehicle that has mechanical problems or a home that has structural damage and/or does not have property in it to avoid making loan payments or receive payments for damages and losses.
- Forged Certificate: An individual, often a contactor, forges a Certificate of Insurance to satisfy Workers Compensation and Liability requirements. Agents may also forge false Certificates of Insurance to pocket the premiums without actually putting a policy in place for the consumer.
- Premium: An individual lists their garaging location at somewhere other than where the vehicle is being driven or excludes drivers that live in their household to receive lower rates.
- Glass: A business provides incentives, replaces undamaged windshields, or uses refurbished glass. An individual may update their policy to include glass coverage or lower their deductible to claim pre-existing damage.
- Jump In: An individual that is not a passenger in a vehicle claims to be involved in a collision and claims injuries.
- Rentals: A rider utilizes a rideshare vehicle to stage a collision or claims to be injured when they were not. A driver may also conceal that they are driving for a rideshare app to receive lower rates.
- Ring/Organized Activity: A group of individuals that work together to intentionally defraud insurance companies. The most common scheme that rings utilize are staged accidents.
- Staged Accident: Individuals intentionally cause collisions or report fictitious collisions to claim pre-existing damage, fabricate or exaggerate injuries, and increase demands.
- Roofing/Contractor: A business intentionally causes damage to an individual’s property, offers to “cover the deductible,” or fabricates supporting evidence, such as receipts and repair bills. This type of activity will often cause the claim to be denied leaving the homeowner with damaged property and still owing the full amount for repairs.
- Slip and Fall: An individual pretends to fall or accidentally falls and then fabricates or exaggerates injuries. Slip and fall incidents often occur at big-box stores, grocery stores, convenience stores, or other businesses.