Some Gen Z Might Not Understand They’re Committing Fraud—or Merely Not Care

If you are beneath the age of 34, you might be extra keen to commit insurance coverage fraud, in keeping with new analysis from the University of Georgia.

The findings of the examine counsel that youthful adults (Generation Z and younger Millennials) are extra possible than older generations to deceive an insurance coverage firm with a purpose to lower your expenses or assist another person—typically with out realizing that what they’re doing is unlawful.

“Many people, especially younger people, have an adversarial relationship with insurance companies,” mentioned shopper economist professor Brenda Cude, lead writer of the examine, in a press release.

“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 widespread actions all qualify as fraud—even when many individuals don’t understand it:

• Padding claims: Adding damages that occurred earlier than an accident to a brand new insurance coverage declare.
• Lying on functions: Providing false data, akin to itemizing your automotive at your dad and mom’ tackle as an alternative of the place it is truly parked, to get decrease premiums.
• False medical billing: Helping a supplier invoice an insurer for remedies you did not truly obtain.
• Omitting key particulars: Leaving out vital details about well being circumstances, driving historical past, or property dangers to safe cheaper protection.
• Exaggerating losses: Inflating the worth of stolen or broken property when submitting a declare.

Two in Five Young Adults Unfazed by Fraud

The findings draw from survey information compiled by the Coalition Against Insurance Fraud, which requested practically 1,500 adults about their attitudes towards claims and functions.

Two out of 5 respondents between the ages of 25 and 34 mentioned they had been snug with fraudulent actions, akin to together with damages that occurred earlier than a automotive accident in a declare, leaving out particulars on an software to get a greater premium, or serving to a medical supplier invoice for remedy that they had not truly acquired.

Many youthful members seen these actions as intelligent methods to save cash or help mates in troublesome conditions.

“Age was significant. Part of that may be the impersonal way that younger adults relate to insurance companies,” Cude mentioned. “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 distinction, solely about 5 p.c of respondents age 55 and older expressed tolerance for insurance coverage fraud. Cude believes that the distinction might mirror deeper ethical or moral divides between generations.

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

“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 international insurance coverage advisor at SAS, a world chief in information and AI, believes there are numerous elements which have made it simpler for strange individuals to commit insurance coverage fraud, with many now viewing such actions as acceptable and displaying little regret.

Manchester instructed Newsweek it is a mixture of broadly obtainable new applied sciences, macroeconomic shifts and modifications in how the insurance coverage business itself operates.

“AI tools to commit fraud have become ubiquitous,” he mentioned. “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, financial challenges particularly have an effect on younger individuals beginning their careers, who’re most prone to shedding entry-level jobs to AI.

A Shared Dislike for Insurers

Despite the age hole in fraud tolerance, one sentiment was common: dislike for insurance coverage firms.

Across generations, respondents seen insurers negatively, which Cude mentioned isn’t a surprise. What could also be shocking, nonetheless, is that this mistrust doesn’t seem to affect whether or not or not somebody 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 requested.

“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 mentioned.

Cude prompt that some youthful individuals might not totally perceive how insurance coverage works—or what legally constitutes fraud.

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

“I do not assume individuals actually perceive their insurance coverage very nicely or the distinction between a legit declare apply and one thing that’s truly thought of 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).