If you’re under the age of 34, you may be more willing to commit insurance fraud, according to new research from the University of Georgia.

The findings of the study suggest that younger adults (Generation Z and young Millennials) are more likely than older generations to deceive an insurance company in order to save money or help someone else—sometimes without realizing that what they’re doing is illegal.

“Many people, especially younger people, have an adversarial relationship with insurance companies,” said consumer economist professor Brenda Cude, lead author of the study, in a statement.

“If you’re pushed into a position of thinking you need to fight, maybe that pushes people into actions that they wouldn’t otherwise consider, especially if they’re not aware that it’s technically illegal,” she continued.

“There are lots of major consequences that could come from that.”

According to the researchers and the Coalition Against Insurance Fraud, these common actions all qualify as fraud—even if many people do not realize it:

• Padding claims: Adding damages that occurred before an accident to a new insurance claim.
• Lying on applications: Providing false information, such as listing your car at your parents’ address instead of where it’s actually parked, to get lower premiums.
• False medical billing: Helping a provider bill an insurer for treatments you didn’t actually receive.
• Omitting key details: Leaving out important information about health conditions, driving history, or property risks to secure cheaper coverage.
• Exaggerating losses: Inflating the value of stolen or damaged property when filing a claim.

Two in Five Young Adults Unfazed by Fraud

The findings draw from survey data compiled by the Coalition Against Insurance Fraud, which asked nearly 1,500 adults about their attitudes toward claims and applications.

Two out of five respondents between the ages of 25 and 34 said they were comfortable with fraudulent actions, such as including damages that occurred before a car accident in a claim, leaving out details on an application to get a better premium, or helping a medical provider bill for treatment they had not actually received.

Many younger participants viewed these actions as clever ways to save money or assist friends in difficult situations.

“Age was significant. Part of that may be the impersonal way that younger adults relate to insurance companies,” Cude said. “They think, ‘I’m not hurting a person if I commit fraud. This is just a website.'”

She added, “[Someone] might think it’s a good idea to tell the insurer their car is parked at their parents’ house when it’s actually in downtown Atlanta. But that’s technically fraud.”

A Generational Divide in Morality

By contrast, only about five percent of respondents age 55 and older expressed tolerance for insurance fraud. Cude believes that the difference may reflect deeper moral or ethical divides between generations.

“The younger generation just might have a weaker connection to morality and have a situation-based code of ethics,” she said.

“It doesn’t bother them to do things, even if they know that they’re wrong, because they think they’re getting cheated and in the right.”

Franklin Manchester, a principal global insurance advisor at SAS, a global leader in data and AI, believes there are various factors that have made it easier for ordinary people to commit insurance fraud, with many now viewing such actions as acceptable and showing little remorse.

Manchester told Newsweek it’s a combination of widely available new technologies, macroeconomic shifts and changes in how the insurance industry itself operates.

“AI tools to commit fraud have become ubiquitous,” he said. “The technology needed to fake documents, create phony accident scenes or produce receipts is available with a subscription to the latest generative AI site.”

Secondly, economic challenges especially affect young people starting their careers, who are most at risk of losing entry-level jobs to AI.

A Shared Dislike for Insurers

Despite the age gap in fraud tolerance, one sentiment was universal: dislike for insurance companies.

Across generations, respondents viewed insurers negatively, which Cude said is not surprising. What may be surprising, however, is that this distrust does not appear to influence whether or not someone commits fraud.

“Combined with the rising costs of insurance—the Bureau Of Labor Statistics notes the increase to be 62 percent since 2021—and the fact that younger people tend to pay more for auto insurance due to their lack of driving experience and ‘bundle-ability,’ are we surprised that a person in their 30s could and does commit insurance fraud?” Manchester asked.

“I’d challenge the industry to take a hard look at the root cause, challenge their assumptions, and ask why this is happening before laying blame on the customers they’ve worked tirelessly to attract in the first place,” he said.

Cude suggested that some younger people may not fully understand how insurance works—or what legally constitutes fraud.

“We need to think more about how to approach younger folks in terms of insurance fraud,” she said. “Part of that solution might be experience, but maybe part of that solution is also education.

“I don’t think people really understand their insurance very well or the difference between a legit claim practice and something that is actually considered fraudulent.”

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Reference

Cude, B. J., & Zhang, H. (2025). Factors That Influence Willingness to Commit Insurance Fraud. Journal of Consumer Affairs, 59(2). https://doi.org/10.1111/joca.70015