Consumer information
What is insurance fraud?
Consumer scams: Insurance fraud happens when people deceive an insurance company to collect money to which they aren’t entitled. Padding a burglary claim or lying about where you register your car to lower your auto premiums are two examples of smaller “soft” fraud. Burning down your home for insurance money or taking part in staged accidents are examples of “hard” fraud.
Insurer fraud: Insurance agents can steal your premiums and not buy the promised coverage, leaving you unprotected. A dishonest insurer claims employee can steal your claim checks, and fake insurers can sell you bogus policies. Crooked health insurers can pad Medicare or Medicaid claims for profit.
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