Insurance Fraud

Insurance Fraud

  • TFPA is committed to preventing and fighting insurance fraud as part of our mission to efficiently provide essential property insurance products to Texans. Insurance fraud is not a victimless crime.

What is insurance fraud?

  • Insurance fraud is a serious crime.
  • Insurance fraud is the intentional use of deception to receive money or other benefits in an insurance transaction.
  • Insurance fraud includes falsifying information on an insurance application, exaggerating a claim for damages, or billing for services never rendered.

Why should I worry?

  • Insurance fraud is a costly crime racking up an estimated $80 billion in fraudulent claims each year. [Source: Coalition Against Insurance Fraud]
  • Insurance fraud contributes to higher policyholder premiums and higher costs of goods and services because businesses pass the increased costs on to their customers.

How can you protect yourself?

  • Contact TFPA’s Fraud Hotline at 1-800-625-0425 or the Texas Department of Insurance at 1-888-327-8818 if you think you're being scammed or someone asks you to take part in fraudulent activity.

What is TFPA doing to help?

  • Special Investigation Unit: TFPA contracts with trained investigators who have law enforcement experience to investigate suspected fraud.
  • Training employees: TFPA trains claims and underwriting staff on how to spot fraud.
  • Educating consumers: TFPA educates consumers about how to protect their families against scams and offers a toll-free hotline to report fraud.
  • Coordinating with regulators: TFPA works closely with the Texas Department of Insurance to report and investigate suspected fraud.