Insurance Fraud is a huge problem. Claims are denied every day due to fraud. And the cost is staggering.

From homeowners' to auto, life, and even health and disability, fraud comes in many forms and can drain your resources in the blink of an eye.

Insurance fraud is the crime of presenting a false or misrepresented insurance claim. The motivation for committing this crime is typically monetary gain, but a conviction for insurance fraud can have serious repercussions. It can lead to imprisonment and steep fines.

Types of Insurance Fraud
  • Insurance Fraud is financial dishonesty and a serious crime, and any car insurance company worth its salt will take steps to identify potential fraudsters; spotting the signs can be incredibly helpful in fighting fraud and preventing unnecessary premium increases.
  • Soft Fraud is the intentional misrepresentation of a claim submitted by a policyholder to obtain a larger settlement. Soft Fraud includes exaggeration of a legitimate claim and perhaps the misrepresentation of existing damage before applying for insurance, also known as pre-existing damage.

Soft Fraud is more prevalent and often especially prevalent in insurance and can be hard to identify. Recognizing soft fraud is a skill that takes time to develop because, by definition, soft fraud is a misrepresentation that falls between truth and deception.

Effective 1974, Chapter 468, Florida Statutes, as amended, and Section 626.841, Florida Statutes, commonly known as the "Deceptive and Unfair Trade Practices Act."
A few states (such as Oregon) only criminalize insurance fraud against workers' compensation or property insurance policies.

Most states have insurance fraud bureaus, essentially law enforcement systems designed to combat insurance-related illegal activities. The total number of states having their insurance fraud bureaus is 41.