Insurance Fraud Spikes During the Holidays: What Agents Should Know

Every year, the holiday rush brings more crowded parking lots and online shopping carts. It also brings a measurable uptick in insurance fraud. The National Insurance Crime Bureau (NICB) has been warning carriers and consumers for years that fraudulent activity surges during the holidays.^[1] 

For agents, this isn’t just a seasonal talking point. Holiday-related fraud impacts auto, home and commercial clients, drives up loss ratios and ultimately contributes to rising premiums. With fraud costs estimated at $309 billion annually across all insurance lines — including $45 billion in property and casualty alone and up to $20 billion tied to auto insurance fraud and staged accidents — agents play a critical role in identifying red flags and protecting both clients and carriers.^[2]

Below is what you and your clients need to know this holiday season.

Auto Theft Climbs During the Holiday Season

While vehicle theft has been elevated nationwide over the last several years, NICB found that the last three months of the year consistently rank among the highest for reported thefts.^[3]

The holidays create the perfect conditions for both opportunistic theft and fraudulent theft claims, especially when traveling or when vehicles are left in busy retail areas.

Common red flags agents might see this season:

• Claims involving vehicles left in large retail parking lots, but with no corroborating details (no security footage, no witnesses or no police report until much later).

• High-value vehicles reported stolen while the insured was out of town, especially when timelines or locations are inconsistent.

• Repeated theft claims from the same insured, household or commercial fleet within a short timeframe.

• Vague or shifting stories about where the vehicle was parked, who had access or when it was last seen.

• No signs of forced entry in situations where forced entry would normally be expected.

These patterns don’t automatically indicate fraud, but they should prompt agents to gather more information and collaborate with adjusters or their Special Investigative Unit (SIU) team when something feels off. Encouraging clients to secure their vehicles, use telematics or install immobilizers can significantly reduce both real thefts and the likelihood of suspicious claims.

Staged Crashes and Exaggerated Injury Claims Surge

Staged auto accidents remain one of the most costly forms of insurance fraud. In addition, these schemes have grown more sophisticated and popular in recent years, with some states seeing year-over-year increases of 14% to 58%.^[4] 

How agents can help clients avoid staged accidents

Educating clients is essential. Many drivers don’t realize how organized and deliberate these scams can be — or how to spot warning signs on the road.

• Common staged-accident setups clients should watch for:
• Swoop and Squat: One car suddenly brakes in front of the victim while an accomplice boxes them in.
• Panic Stop: A driver slams on the brakes at a yellow light to force a rear-end collision.
• Drive-Down: A scammer waves a driver forward and then accelerates into them.
• Fake Witness: A witness, who is often an accomplice, claims the accident was the victim’s fault.^[5]

Tips agents can share with clients:

• Keep plenty of distance between vehicles, especially in traffic.

• Be cautious of drivers who wave you through or encourage you to merge.

• Install a dashcam or use a telematics app.

• Always call the police after a collision, even if the damage seems minor.

• Take photos of the scene, the other vehicle and any passengers.

When clients do call in a claim

Agents are often the first to hear details that might signal something’s off. If a client reports a crash that doesn’t sound right — especially during the holiday season — it’s important to:

• Ask clear, open-ended questions

• Document everything

• Loop in claims or SIU early if the story raises concerns

Holiday Scams Extend Beyond Auto — and They Affect Home & Commercial Lines

Insurance fraud during the holidays isn’t limited to auto. Seasonal scams targeting shoppers, travelers and business owners create a ripple effect that often ends with an insurance claim. According to an AARP Holiday Fraud Survey, 80% of U.S. adults report being targeted by a scam during the holiday season, ranging from fake delivery notifications to counterfeit charities and online shopping fraud.^[6]

How agents can prepare clients for holiday-related risks

A quick touchpoint in November or December can go a long way. Many people don’t realize that everyday holiday behaviors — such as traveling, online shopping and increased inventory for small businesses — increase their exposure.

Common holiday scams that impact insurance claims:

• Package theft: “Porch piracy” spikes during peak delivery season, resulting in missing packages or property-theft claims.

• Travel-related break-ins: Homes left unattended become targets, especially when burglars track social media posts.

• Retail and hospitality scams: Small businesses face increased slip-and-fall fraud, fake injury claims or inventory-loss claims.

• Identity theft and payment fraud: Stolen personal information can lead to unauthorized purchases and financial loss that intersect with cyber or identity-restoration coverage.

Advice agents can share with homeowners and renters:

• Use package lockers or require a signature at delivery for high-value items.

• Install doorbell cameras or smart locks while traveling.

• Avoid posting real-time travel details online.

• Take inventory photos of gifts and valuables during the holidays.

Advice for commercial clients:

• Increase security during extended holiday hours.

• Train seasonal employees on fraud awareness.

• Review camera footage in high-traffic or high-value areas.

• Update cyber protections before major retail sales periods.

By helping clients strengthen their defenses before problems occur, agents can reduce the likelihood of fraudulent or inflated claims during the busiest season of the year.

How Agents Can Proactively Protect Their Clients (And Their Loss Ratios)

Fraud spikes during the holidays, but agents are in a unique position to get ahead of it. A quick seasonal outreach — even a simple email or social post — can help clients avoid becoming victims and reduce the volume of suspicious claims that land on your desk in the fourth quarter.

Here are some practical steps you can take:

Educate clients before the holiday rush begins

Many holiday fraud schemes are preventable with basic reminders. Agents can share simple, high-impact tips:

For personal lines clients:

• Don’t leave vehicles running unattended while warming up.

• Keep packages out of sight during shopping trips.

• Use dashcams or telematics apps.

• Secure the home when traveling and avoid posting real-time travel updates.

For commercial clients:

• Lock vehicles and secure fleet yards during extended holiday hours.

• Train seasonal staff to spot suspicious behavior.

• Review camera placement and inventory protocols.

Encourage quick reporting and detailed documentation

Fraudsters rely on delayed reporting and vague details. Clients who know what to collect — photos, witness information, timelines — reduce the risk of fraudulent claims moving forward without proper review.

Review coverages before holiday travel or peak retail periods

Clients often travel or run seasonal promotions without realizing they may have gaps in coverage, such as:

• Comprehensive auto coverage

• Off-premises theft

• Business property limits

• Cyber protections for increased online activity

A quick coverage check-in can prevent misunderstandings later.

Watch for red flags when new claims come in

The holidays often produce legitimate claims, but they can also produce questionable ones. Signs that may warrant a closer look include:

• Timelines that shift or don’t add up

• Injury claims that escalate after minor collisions

• Multiple passengers suddenly reporting soft-tissue injuries

• Third-party “helpers” who appear at the scene offering referrals or legal help

• Claims involving theft with no signs of forced entry or inconsistent details

Spotting these early signs allows agents to escalate appropriately.

Leverage partnerships with SIU teams

Remember, agents don’t have to investigate fraud alone, but they can recognize when a claim needs expert review. Partnering with SIU teams strengthens fraud detection and protects clients from paying higher premiums due to others’ fraudulent losses.

Why It Matters: Fraud Impacts Your Clients Long After the Holidays

Fraud isn’t just an insurer problem — it’s a cost that ultimately falls on consumers and businesses. When fraudulent claims rise, carriers absorb higher losses, premiums increase, and coverage terms can tighten. With auto and home insurance rates already elevated across much of the country, reducing unnecessary payouts is one of the most meaningful ways agents can advocate for policyholders.

Holiday season fraud has a way of echoing into the new year. Claims filed in December influence rate trends, underwriting decisions and renewal pricing well into the future. By helping clients reduce exposure now — and by flagging questionable activity early — agents protect their clients, strengthen their book of business and contribute to more stable pricing months ahead.

A few timely conversations in the fourth quarter can make a measurable difference for your clients and your company.

Sources:

1. NICB. “12 Days of Fraud’ Campaign Raises Awareness of Insurance Scams During Holiday Season.” Accessed Dec. 3, 2025.

2. R Street. “Rampant Fraud in Staged Accidents.” Accessed Dec. 3, 2025.

3. NICB. “Over 745,000 Stolen Vehicles Reported So Far in 2022.” Accessed Dec. 3, 2025.

4. Fox Business. “Auto Insurance Fraud on the Rise in US: Staged Accidents ‘More Brazen’ Than Before.” Accessed Dec. 4, 2025.

5. IAT Insurance Group. “Staged Auto Accidents: A Costly and Dangerous Threat for Fleets.” Accessed Dec. 4, 2025.

6. AARP. “Expect a Spike in Scam Attempts During the Holidays.” Accessed Dec. 4, 2025.