10 worst cities for insurance fraud in 2023

Atlanta tops our list

By Susan Meyer

Updated April 5, 2024

Reviewed By Ross Martin

Table of contents:

Cities 1 - 3
Cities 4 - 6
Cities 7 - 10
Avoiding insurance fraud

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How we found the worst cities for insurance fraud

Insurance fraud is a growing problem that can result in higher premiums for everyone. It's expected that $80 billion per year is lost due to insurance-related fraud such as false claims^[1]. Scam calls are often on the rise, which can cost residents time and money through identity theft. Some areas of the country are more prone to these tactics than others.

The Zebra analyzed the 50 most populous cities in the U.S. to find the areas most prone to insurance fraud. We used the following three data points:

Number of white collar crimes per 10,000 people: Insurance fraud falls under white collar crime.
Number of fraud laws in the state:
Number of scam calls per capita (annually): Many scam calls are related to insurance.

Based on these data points, here are the top 10 cities where insurance fraud is the most prevalent.

#1: Atlanta, Georgia

Atlanta ranks as the worst place for insurance fraud for a few different reasons. It has the highest number of scam calls each year and also has the third highest rate of white-collar crime. On top of that, Georgia only has one fraud-related law in place, which is related to mandatory reporting of suspected child abuse or neglect.

Atlanta by the numbers

Number of white-collar crimes (per 10,000 people): 3,008.09
Number of state insurance fraud laws: 1
Number of scam calls per capita: 1,262

#2: Raleigh, North Carolina (tied)

Raleigh has a significantly lower amount of scam calls compared to Atlanta. But the number is still hefty at 286, and ranks 10th for this category. And like Georgia, state fraud laws are lax, with one being reported by the Coalition Against Insurance Fraud. White-collar crime data was not available for Raleigh.

Raleigh by the numbers

Number of white-collar crimes (per 10,000 people): Not available
Number of state fraud laws: 1
Number of scam calls per capita: 286

#2: Richmond, Virginia (tied)

Richmond ties with Raleigh for the second spot on our list. It has the highest number of white-collar crimes out of the cities we analyzed, which exceeds 7,504 per 10,000 people. Data on annual scam calls was not available, but Virginia only has two fraud-related laws reported.

Richmond by the numbers

Number of white-collar crimes (per 10,000 people): 7,504.23
Number of state fraud laws: 2
Number of scam calls per capita: Not available

#4: Charlotte, North Carolina (tied)

Charlotte also has a substantial amount of white-collar crime, coming in at over 2,065 per 10,000 people. Scam calls are persistent in the city at 203 per year, but not as bad as in other cities on our list. And like Raleigh, Charlotte's location in North Carolina means fraud laws are limited.

Charlotte by the numbers

Number of white-collar crimes (per 10,000 people): 2,065.53
Number of state fraud laws: 1
Number of scam calls per capita: 203

#4: Detroit, Michigan (tied)

Detroit ties for fourth partially due to the relatively high rate of white collar crimes, which totals 855.88 per 10,000 people. On top of that, the city ranks 8th out of those we analyzed in terms of scam calls per capita. Each year, that number totals 311. Michigan is also lax on state-specific fraud laws.

Detroit by the numbers

Number of white collar crimes (per 10,000 people): 855.88
Number of state fraud laws: 1
Number of scam calls per capita: 311

#6: St. Louis, Missouri

White-collar crime in St. Louis is above average, totaling over 900 cases per 10,000 people. Scam call data isn't available, but Missouri also fares poorly when it comes to fraud laws — only one is currently in effect.

St. Louis by the numbers

Number of white-collar crimes (per 10,000 people): 903.72
Number of state fraud laws: 1
Number of scam calls per capita: Not available

#7: Virginia Beach, Virginia

Virginia Beach may not have data available on white-collar crimes, but it does have a significant amount of scam calls, amounting to 246 per capita each year. Plus, as we saw with Richmond, Virginia only has two fraud-related laws, bringing the Virginia Beach area to our seventh spot.

Virginia Beach by the numbers

Number of white-collar crimes (per 10,000 people): Not available
Number of state fraud laws: 2
Number of scam calls per capita: 246

#8: Chicago, Illinois

Chicago is another city to watch for insurance fraud. Illinois only has one recognized anti-fraud law. The number of white-collar crimes is unclear, but scams per capita reach 182 each year.

Chicago by the numbers

Number of white-collar crimes (per 10,000 people): Not available
Number of state fraud laws: 1
Number of scam calls per capita: 182

#9: Las Vegas, Nevada

Las Vegas comes in 9th overall, and 15th when it comes to white-collar crime. Each year, over 1,056 crimes are committed per 10,000 people. Nevada has just one state fraud law. Plus, scam calls per capita reach 182.

Las Vegas by the numbers

Number of white-collar crimes (per 10,000 people): 1,056.46
Number of state fraud laws: 1
Number of scam calls per capita: 196

#10: Dallas, Texas

Dallas takes our last spot for worst cities for insurance fraud. White-collar crime incidents surpass 966 per 10,000 people each year. The city also has one of the highest rates of scam calls, reaching 470 per capita. The good news is that Texas does have three anti-fraud laws, including mandatory reporting, fraud plan and fraud warning laws.

Dallas by the numbers

Number of white-collar crimes (per 10,000 people): 966.29
Number of state fraud laws: 3
Number of scam calls per capita: 470

How to avoid insurance fraud

No matter where you live, it's good to keep an eye out for potential insurance fraud. Be wary of people calling you, related to your home or auto insurance, if you don't know who they are. Scammers will often try to trick you into giving them personal info or sending money by making the matter seem very urgent.

Here are a few other resources to help avoid either committing or being the victim of insurance fraud:

Common car insurance scams and how to avoid them

Auto insurance hacks versus fraud

Ask an agent: Avoiding insurance fraud

Methodology

The Zebra pulled four data points to analyze the top 50 MSAs (by population) in the U.S. related to insurance fraud and white-collar crimes:

Number of white-collar crimes per 10,000 people^[2]
Number of state fraud laws^[3]
Number of scam calls per capita^[4]

MSA data was used where applicable, and we sometimes substituted city or state data as necessary.

Sources