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Home > Consumers > Fraud > Types of fraud
Types of fraud
Auto insurance fraud examples
  • Staged accidents, where one or more criminals cause intentional collisions in order to get undeserved payments for health care costs for alleged injuries or vehicle damage
  • Providing false information to an insurance company about a car's mileage or use
  • Phony injury claims, when people lie about the injuries they have sustained in an accident
  • Inflated damage claims, in which criminals falsify the extent of damage or the true cost of repairs to their vehicles
  • Phony thefts, where the owner simply abandons a vehicle and then claims it was stolen (known as an "owner give-up")
  • Falsely claiming a one-car accident was a "hit and run"
  • Inventing injuries to people who were not in a vehicle at the time of the accident (people known as "jump-ins")
Health insurance fraud examples
  • Doctors billing insurers for a more costly service than the one performed (also called upcoding)
  • Providing services such as tests, surgeries or other procedures that are not medically necessary to get additional payment
  • Billing for services not actually rendered (often using genuine patient names to fabricate entire claims)
  • Billing each stage in a procedure as if it were a separate procedure (known as "unbundling")
  • Accepting kickbacks for referrals
  • Organized criminals setting up a phony clinic solely to generate fraudulent claims
  • Patients forging receipts to get unwarranted reimbursement from an insurance company
  • Patients embellishing, adding to or just plain lying about services received
  • Patients who ask their doctors to falsify a report to an insurer to cover a non-covered procedure
  • Patients who ask a doctor to waive their copayments
Homeowners' insurance fraud examples
  • Staging a phony burglary or vehicle break-in and faking a loss
  • Overstating the value of stolen items after an actual burglary of a home or vehicle
  • Lying about the extent, cause, date or location of legitimate damage
  • Intentionally damaging property
  • Making a second claim for a loss that was already paid for by another insurer or through a prior claim
  • Asking a repairman to "cover your deductible" within their estimate
  • Fabricating supporting evidence--often in collusion with a crooked contractor, plumber, repairman or insurance adjuster


Report fraud online

North Dakota Insurance Department
600 E. Boulevard Ave.
Bismarck, ND 58505-0320
Phone 701.328.2440
Toll free 800.247.0560
Fax 701.328.4880

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