Texas Insurance Fraud 2026: What Agents and Consumers Need to Know

Insurance fraud costs Texans billions of dollars every year. It raises premiums, costs taxpayers money, and leaves victims to recover from crimes they never knew happened.

In 2025, TDI investigated 401 fraud cases and secured $50.9 million in restitution for victims.

The problem is growing. Fake insurance cards, fake agents, staged crashes, and licensed agents using stolen IDs are all increasing.

Here is what every Texas insurance agent and consumer needs to know about insurance fraud in 2026.

Quick Summary: Texas Insurance Fraud in 2026

• Fake insurance cards surged — from 38 reports in 2023 to 126 in 2025
  
• $50.9 million in court-ordered restitution secured by TDI in 2025
  
• 401 fraud cases investigated in 2025
  
• Scammers posing as agents demand cash or app payments
  
• Fake policies created using stolen identities
  
• TDI hotline: 1-800-252-3439 to verify licenses or report fraud

Common Types of Insurance Fraud in Texas

1. Fake Insurance Cards

Fake insurance cards are a growing problem. TDI received 38 fraud reports in 2023. By 2025, that number had climbed to 126. In early 2026 alone, there were already 37 reports.

Scammers sell fake cards online or in person. They collect cash or app payments, issue a fake card, and disappear. The victim only finds out when they get pulled over or in an accident.

2. Scammers Posing as Agents

Some scammers pretend to be insurance agents. They ask for payment in cash or through apps — methods that are harder to trace.

Others show up at people's doors asking for personal information. Some run fake websites or post on social media offering "cheap insurance."

"Don't sign up for car insurance on Facebook. Check out the agent and make sure they're real." — Anita Todd, TDI Criminal Analyst

3. Licensed Agents Using Stolen Identities

Some fraud cases involve licensed agents using stolen identities. They create fake policies and collect commissions.

TDI analysts check names and dates of birth to verify if people are real. Then investigators contact them to ask if they knew a policy was created in their name.

4. Staged Car Crashes

Fraudsters cause crashes and file inflated claims for damage, medical bills, and lost wages.

5. Fake Medical Claims

Medical fraud is one of the most expensive types of fraud. In one Dallas case, twin brothers running a pain management clinic overprescribed opioids. They billed multiple insurers for injections they never performed — 80 injections on the same patient in a single day. The scheme resulted in more than $45 million in false claims. The brothers went to prison, were ordered to pay $9 million in restitution, and lost their medical licenses.

How to Spot Insurance Fraud

Warning signs:

• An agent who insists on cash or app payments
  
• No policy documents — or documents that look fake
  
• An unusually low price that seems too good to be true
  
• Someone who shows up at your door asking for personal information
  
• An agent who won't give you their license number
  
• Pressure to make a quick decision without reading the policy

What to do:

• Check the agent's license using TDI's online search tool
  
• Contact the insurance company directly to verify your coverage
  
• Save all policy documents and receipts
  
• Never pay cash for insurance
  
• Report suspected fraud to TDI at 1-800-252-3439

How Agents Can Protect Their Clients — and Themselves

Educate your clients. Many people don't know how to verify an agent's license. Explain the risks.

Be transparent. Provide clear policy documents and receipts.

Stay current on fraud trends. Scammers are always developing new schemes.

Document everything. If you give clients advice about fraud or verification, keep a record.

Report fraud. If you suspect a client is being scammed, report it to TDI.

Why Fraud Matters to Everyone

Insurance fraud is not a victimless crime. It costs insurers billions every year — and those costs are passed on to policyholders as higher premiums.

TDI analysts follow the money — claims, receipts, bank records — to uncover fraud and find victims.

"Some people don't even know they've been scammed until we contact them," said Vivian Cervantez, financial analyst team lead at TDI.

Frequently Asked Questions

What is the most common type of insurance fraud in Texas?

Scammers posing as agents and selling fake policies is one of the most common schemes. Fake insurance cards are also a growing problem.

How do I check if an agent is licensed?

Go to txapps.texas.gov or call TDI at 1-800-252-3439.

What should I do if I think I've been scammed?

Call TDI right away at 1-800-252-3439. Save all documents, receipts, and communications related to the policy.

Can licensed agents commit fraud?

Yes. TDI has investigated cases where licensed agents used stolen identities to create fake policies.

How much does fraud cost Texans?

In 2025, TDI secured $50.9 million in court-ordered restitution for victims. The total cost to insurers — and policyholders — is much higher.

What is TDI doing to stop fraud?

TDI has investigators across the state who work with analysts to follow financial trails and build criminal cases.

Staying Informed and Protected

Insurance fraud affects everyone — agents, consumers, and the industry. Staying current on fraud and consumer protection helps agents serve clients and protect their careers.

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