Insurance fraud occurs when someone misrepresents information to an insurance company, usually for monetary gain or to get an insurance policy they would otherwise be declined for. As a white-collar crime, insurance fraud occurs when someone of status makes that misrepresentation. It is a violation of California Penal Code PC 550.

In criminal law, fraud is a white-collar crime and it can be charged and sentenced as either a misdemeanor or a felony. A crime is generally considered white-collar when the crime is perpetrated by someone of status or wealth.

If a person makes a false or fraudulent claim, the prosecution may bring Insurance fraud charges against him.