The Year in Insurance Fraud: Key Cases and Trends from 2025

Insurance fraud continues to cast a long shadow over Aotearoa’s insurance sector. In 2025, New Zealand insurers, investigators, and policyholders alike have faced a growing wave of deceit, ranging from opportunistic exaggerations to premeditated criminal activity.

This year, the Insurance Fraud Bureau (IFB) has observed not only high-profile fraud cases, but also shifting public perceptions and emerging trends that are reshaping the fraud landscape. As inflation and financial pressure mount across the country, the temptation to fabricate or inflate insurance claims has, regrettably, followed suit.

In this end-of-year review, we examine real fraud cases, public sentiment, and frontline data from insurers to better understand the threats facing our insurance system and the steps we must take to protect it.

Real Cases That Shaped 2025

A Calculated Campaign of Deception

One of the most disturbing cases this year saw Ōtorohanga woman Sally-Kae French jailed for over four years following a complex scheme involving 21 fraud-related charges, including forgery, false documentation, and a fraudulent insurance claim for a horse float valued at $4,000. Her relentless pursuit of personal gain through deception shows the serious, long-term consequences of insurance fraud, including prison time.

Honesty Matters: Couple Left Without Cover

In another case, a couple’s motor claim was declined after they were found to have provided false information about how the damage occurred. As a result, their policies were cancelled. This case sends a clear message: even seemingly small lies can carry serious financial repercussions, including the loss of future insurability.

Travel Fraud and Falsified X-Rays

Two Christchurch men were charged after allegedly using fake X-rays to support false travel injury claims worth $45,000. They now face criminal charges, highlighting how fraudulent travel claims are not harmless and can lead directly to prosecution.

Fabricated Jewellery Claims

In one standout example from our most recent  Insurance Fraud Report, a policyholder claimed $23,000 in lost jewellery, only to later admit the items were placed in a linen cupboard and not stolen. The claim was withdrawn after inconsistencies emerged during the investigation. It’s a clear reminder: false claims often unravel under scrutiny.

Fraud on the Rise: What Insurers Are Seeing

Our data indicates NZ insurers are reporting a noticeable increase in fraudulent claims driven by financial pressure, as rising living costs and economic hardship continue to impact households. Many of these cases involve fabricated losses, often for high-value items like jewellery, electronics, and vehicles, or inflated claim values for belongings of sentimental or perceived worth. A growing trend has also emerged in claims lodged shortly after policy inception, raising red flags that the loss may have occurred before coverage began. In several instances, claimants have attempted to quietly withdraw false claims once investigations commence. While these cases may not always reflect calculated fraud, they do reveal the influence of desperation on decision-making. Regardless of motive, the consequences are serious and consistent: cancelled policies, declined claims, and in some cases, criminal prosecution.

Motor Vehicle Fraud Still a Key Concern

Motor vehicle-related fraud continues to be a significant concern for New Zealand insurers, with reports indicating a steady rise in suspicious activity. This includes staged crashes designed to appear legitimate, false reports of theft or damage, and deliberate efforts to write off vehicles, such as intentionally damaging engines with sand or stones. Insurers have also noted cases where policyholders sell their vehicles for cash through online marketplaces, only to file a claim shortly after. Breaches of licence conditions and misrepresentation of accident details are also common tactics. Alarmingly, some of this activity appears to be linked to organised groups operating through social media platforms. As this trend shows no sign of slowing, motor vehicle fraud will remain a key area of focus for insurers heading into 2026.

Forgeries and Falsified Documents

Another troubling trend in 2025 involves forged receipts, altered sale certificates, and dishonest documentation used to inflate claim values. In one case, a claimant included wedding rings and an iPhone in a handbag theft claim. Investigators later discovered the phone was still in her possession and the sales receipt for the jewellery had been forged. The claim was ultimately denied.

Public Perception: What Our Most Recent Fraud Survey Told Us

Public awareness of insurance fraud in New Zealand remains high, with our latest Fraud Survey offering valuable insights into how everyday Kiwis perceive dishonest claims. The results highlight that many New Zealanders are not only aware of fraudulent behaviour but recognise the specific forms it commonly takes. This growing awareness is essential in building a collective understanding of how insurance fraud affects everyone, that is by increasing premiums, delaying genuine claims, and eroding trust in the system. Our data revealed the following perceptions among respondents:

• 61% of Kiwis believe inflated claims for lost or stolen items are common
  
  
• 55% see misrepresentation and non-disclosure as frequent issues impacting claims
  
  
• 44% believe entirely false claims, where no actual loss occurred, are widespread
  
  
• 39% recognise staged losses, such as deliberate property damage, arson, or fake thefts
  
  

These findings suggest that while some types of fraud are more readily recognised than others, the public is becoming increasingly conscious of the behaviours that undermine the fairness and affordability of insurance for all.

The Consequences: Recognised and Misunderstood

The Fraud Survey released earlier this year also explored public understanding of the consequences faced by those caught committing insurance fraud. While many New Zealanders are aware of the financial penalties involved, there is noticeably less certainty about the legal outcomes. This highlights a concerning gap in awareness that could downplay the seriousness of insurance fraud in the eyes of some.

When asked what they believe typically happens to fraudsters:

• 72% say the claim will be declined
  
  
• 70% believe it will be harder to get insurance in the future
  
  
• Only 52% think a criminal conviction is likely
  
  

While the majority of respondents correctly associate fraud with denied claims and difficulty obtaining future cover, fewer than half fully grasp the legal implications, such as prosecution and criminal records. This suggests that public education needs to go further in reinforcing that insurance fraud is not only unethical, it’s a criminal offence. Convictions can carry lifelong consequences, including financial hardship, reputational damage, and barriers to future financial services. Strengthening public understanding of these outcomes is essential to deter fraudulent behaviour and protect the integrity of the system.

Why This Matters to Every Policyholder

Insurance fraud doesn’t just affect insurers, it has direct consequences for every honest policyholder in New Zealand. While fraud may seem like a problem between an individual and their insurance provider, its ripple effects are widespread, contributing to higher premiums, slower claims processing, and a general erosion of trust within the insurance system. Our data clearly shows that many Kiwis understand these impacts:

• 66% of New Zealanders believe fraud leads to higher premiums for everyone
  
  
• 63% say it causes delays in processing genuine claims, as insurers must investigate more thoroughly
  
  
• 62% think fraud gives insurers a justification to increase pricing
  
  

These findings reflect a public that recognises the personal cost of insurance fraud, but they also underscore the importance of continued public education, particularly around the long-term legal and financial consequences of dishonest claims. By understanding how fraud harms all policyholders, we can foster a stronger culture of honesty and encourage more people to speak up when they see suspicious behaviour.

What We Must Do Together

The vast majority of New Zealanders are honest, but the actions of a few dishonest individuals affect us all. Whether it’s fabricating documents, staging a crash, or exaggerating a loss, insurance fraud undermines trust and increases costs for everyone.

If you suspect someone is committing insurance fraud, you can report it safely, anonymously, and confidentially.

Suspect fraud? Say something. Report it now: https://ifb.org.nz/report-fraud/

Frequently Asked Questions

How common is insurance fraud in New Zealand?

Insurance fraud is increasingly common in New Zealand. Over 60% of Kiwis believe that inflated or dishonest insurance claims happen frequently, and insurers continue to report a growing number of fraudulent claims across multiple policy types, especially during periods of financial pressure.

What are examples of insurance fraud in New Zealand?

Examples of insurance fraud in New Zealand include staged car accidents, false theft reports, inflated claims for lost items, forged documents, and claiming for damage that occurred before a policy was taken out. These behaviours lead to increased premiums and undermine trust in the insurance system.

How does insurance fraud affect my insurance premiums?

Insurance fraud increases the overall cost of claims, which leads insurers to raise premiums for all policyholders. Fraudulent claims also create delays for genuine customers, as insurers must spend more time investigating suspicious claims to protect the system’s integrity.

Is insurance fraud a crime in New Zealand?

Yes, insurance fraud is a criminal offence under New Zealand law. People caught committing insurance fraud may face declined claims, cancelled policies, and prosecution. A conviction can result in fines, imprisonment, and difficulty obtaining insurance in the future.

Are more people committing insurance fraud due to the cost of living?

Yes, rising living costs and economic pressure have contributed to an increase in opportunistic insurance fraud. Insurers are seeing more cases involving fabricated losses or exaggerated claims, often driven by financial stress. However, fraud remains illegal and carries serious consequences.

What are examples of staged car accidents in New Zealand?

Staged car accidents are deliberate crashes designed to look like genuine accidents. Common examples include sudden braking to cause a collision, false damage reports, and collusion between drivers. These scams are used to claim insurance payouts and are increasingly linked to organised groups.

Can I report insurance fraud anonymously in New Zealand?

Yes, you can report suspected insurance fraud anonymously through the Insurance Fraud Bureau of New Zealand. All reports are treated confidentially, and your identity will not be disclosed.
Click here to report fraud