Younger people are far more likely to consider committing insurance fraud than older generations, a finding that aligns with other age-related patterns in fraudulent behavior.
Researchers at the University of Georgia surveyed respondents on whether they would consider such actions such as including damages from a previous incident in a new car accident claim or providing false or misleading information on an insurance application to get better coverage. Two out of five respondents between the ages of 25 and 34 indicated they were comfortable with these actions, often framing them as ways to save money or help friends in difficult circumstances.
By contrast, only about 5% of respondents ages 55 and older expressed approval such behavior. The study suggested that older adults may possess a stronger moral framework, with attitudes toward fraud largely shaped by ethical considerations.
Negative Feelings Toward Insurers
Overall, all age groups expressed negative feelings toward insurance companies; however, the study also noted that younger adults tend to interact with insurance companies in a more impersonal way, and often perceive fraud as a victimless act.
“Younger adults are more comfortable committing most types of fraud,” said Jennifer Pitt, Senior Analyst of Fraud Management at Javelin Strategy & Research. “They rationalize their behavior by airing their dire economic situations and stating that fraud is a victimless crime because they are stealing from large companies—like insurance companies—that can afford the losses.
“Many younger adults also think that insurance companies are simply ‘stealing’ money from hard-working people just to line their pockets. So they have no problem stealing from the organizations that they believe are stealing from everyone.”
Unsure of Where to Draw the Line
The younger adults surveyed changed their views only when they feared significant consequences or broader harm resulting from their actions. There was a clear lack of understanding about what constitutes fraud. Many participants were unsure where the line is drawn between legitimate—but questionable—claim practices and outright fraud.
This appeared to be the case in the rash of check fraud committed against Chase Bank, which was driven by a viral TikTok post in 2024. Many participants convinced themselves that they were simply taking advantage of a banking “glitch.”
“People used to make decisions based on their moral compass—or by weighing the risks versus the rewards,” said Pitt. “Many of today’s youth are no longer weighing moral implications or risks versus rewards when deciding whether to commit crimes like fraud.”
