Fraud FAQ

What is insurance fraud?

Insurance fraud occurs when someone intentionally deceives their insurance company about an insurance matter to receive money or other benefits not rightfully theirs.

How does insurance fraud affect me? Why should I care?

Insurance Fraud costs our country over 80 billion dollars a year according to the Coalition Against Insurance Fraud. This adds $13-$18 billion to America’s annual insurance bill, notes a study by the Rand Institute for Civil Justice When someone commits insurance fraud we all have to pay.

I have been paying my premiums for 5 years and never had a claim. My house was just broken into and I think my insurance company owes me a good settlement. Does it matter if I throw in a few extra items as part of my stolen inventory?

Yes.! Whether you add in one item or several items, padding your claim is insurance fraud and your insurance company can deny your claim for padding. You are also committing insurance fraud.

How do I report insurance fraud?

That’s easy! You can report fraud to the website for NICB.


If you believe insurance fraud is being or has been committed, speak up! To report fraud, click the button on the right or call the NICB Hotline at 800.TEL.NICB (800.835.6422), staffed Monday through Friday from 7 a.m. to 8 p.m. CST. Cell phone users can text the keyword “FRAUD” and their tip to TIP411 (847411). Plus, iPhone or iPad users can download the NICB Fraud Tips app to make it easy to quickly send a tip and get a response. Whichever method you choose, all tips can be anonymous.