NICB Warns Consumers Nationwide: Insurance Fraud Is Coming for Your Pocketbook

Consumers Can Join the Fight Against Insurance Fraud by Understanding What It is and Reporting It

OAK BROOK, Ill., Nov. 5, 2025 /PRNewswire/ -- The National Insurance Crime Bureau (NICB), the nation's leading not-for-profit organization dedicated to preventing and combating insurance crime, is warning consumers across the nation about the growing impact of insurance fraud. As part of a new campaign with the Anti-Fraud Alliance, NICB is encouraging policyholders everywhere to join in combating the deceptive schemes that drive costs up for policyholders and businesses by learning more about insurance fraud, sharing best practices with their communities and reporting it.

Insurance fraud includes any scheme in which someone deceives an insurance company or consumer to reap financial gain from their insurance policy. That ranges from individuals exaggerating what would be legitimate claims, to organized groups of people staging accidents, fabricating property damage, or billing for services that they never rendered. With insurance lines covering nearly every industry, scams affecting American policyholders and companies are among the most pervasive financial crimes in the nation.

Insurance fraud is not a victimless crime. According to the Coalition Against Insurance Fraud, the U.S. loses approximately $308.6 billion in insurance fraud, leading to each policyholder paying $900 more through annual premium increases.

"The cost and pain from insurance fraud is not invisible and is not felt by insurers alone – it hurts everyone," NICB West Region Director of Operations Ray Duncan said. "By recognizing common or seemingly innocent insurance fraud schemes and reporting suspicious activity, you can help reduce the incidence and cost of these schemes for everyone. All of us can take steps to protect ourselves and educate those around us. These preventative measures can help to stop criminals before they take advantage of others."

NICB is calling on consumers to join in the fight against insurance fraud by learning the warning signs of fraud and familiarizing themselves with the process of reporting suspected insurance crimes to the proper authorities.

Fraud schemes of all types often look alike at their inception. They rely on moments of vulnerability where victims are most susceptible to deception such as after car crashes, during medical visits, or in the aftermath of a natural disaster.

Whether targeting consumers at home after a weather catastrophe, at a place of trust like a medical clinic, or on the street, scammers exploit confusion and pressure their targets into quick decisions, often disguising their schemes as legitimate, everyday business practices.

Fraud Comes in Many Forms

In residential communities – Especially in the aftermath of storms, wildfires and earthquakes fraudulent contractors may arrive unsolicited at the doorstep of their targets, attempting to reap their victims' insurance benefits by offering promises of work that they never intend to complete.

In medical clinics and doctors' offices – Fraud can take the form of pressure to visit certain medical professionals who may be participating in an organized mill, unnecessary prescriptions, and being billed for services that were never rendered.

After vehicle collisions – Predatory towers swoop in without having ever been called, and sometimes without licenses to sign motorists up for a towing job before they have the chance to reorient themselves, leaving them on the hook for overinflated charges.

The red flags from scheme to scheme follow a similar playbook: demanding cash up front, padding loss or injury claims to get a larger payout, pressuring policyholders to sign over their insurance benefits, or simply overcharging for services with the rationale of "insurance will cover it." In each of these schemes, the pattern and result are the same: fraudsters profit while consumers and insurers bear the cost.

If you suspect insurance fraud or have been the victim of a scam:

• Report it to law enforcement and your state's Department of Insurance through the National Association of Insurance Commissioners at https://ofrs.naic.org.
  
  
• Contact your insurance company immediately to inform them of any suspected fraud attempts.
  
  
• Call NICB's toll-free hotline at 800-TEL-NICB (800-835-6422).

About the National Insurance Crime Bureau: Headquartered in Oak Brook, Ill., the National Insurance Crime Bureau (NICB) is the nation's leading not-for-profit organization exclusively dedicated to combatting and preventing insurance crime through Intelligence, Analytics, and Operations; Education and Crime Prevention; and Strategy, Policy, and Advocacy. NICB is supported by more than 1,200 property and casualty insurance companies and self-insured organizations. To learn more, visit NICB.org.

SOURCE National Insurance Crime Bureau (NICB)