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The act of defrauding insurance companies

On Behalf of | Aug 9, 2022 | Blog, White Collar Crimes |

Insurance is often beneficial in Michigan whether it’s for your car or for your health. However, there are times that fraud can be committed when an individual or a business submits a false claim in order to get money for a loss that might not have occurred.

Defining fraud

When a claim is filed with an insurance company, the insured or the representative must provide factual information. If false or misleading information is given, then it could be considered fraud, which is among the white collar crimes. Anyone could commit this type of fraud whether it’s someone who is applying for an insurance policy and gives false information in order to obtain a better rate or a professional who is trying to obtain more money for a service that they claim was provided and wasn’t. Sometimes, insurance agents are among those who commit fraud. They might inflate the estimates that are provided so that they can get a larger bonus.


There are a few different ways that insurance fraud is typically committed. When someone completes an application for a new policy, they could commit fraud by giving different information than is factual so that they can get more coverage. This could result in a larger payout if a claim is filed in the future. If a claim is filed, fraud could be committed if the facts are not presented correctly or are exaggerated. A loss might not be described in the correct way, or the value of the items damaged could be misrepresented in order to get more money from the company.

While insurance can be the protection that is needed in the event of an accident or a disaster, it can also be easy to commit fraud, which could lead to severe consequences.