Which type of fraud involves collusion among multiple parties to defraud an insurance company?

Organized fraud is characterized by the collusion among multiple parties to execute fraudulent schemes, often targeting entities like insurance companies. This type of fraud usually involves a structured conspiracy where various participants, such as policyholders, claims adjusters, and sometimes even healthcare providers, work together to fabricate or exaggerate claims for monetary gain.

The nature of organized fraud makes it particularly challenging to detect and prosecute, as it typically includes sophisticated planning and the sharing of roles among the conspirators. These groups can operate on a large scale, involving a network of numerous individuals, which can lead to significant financial losses for the insurance company.

Other types of fraud, such as claimant fraud, agent fraud, or vendor fraud, usually involve individual actors or limited collaboration, which does not encompass the same level of sophistication and planning seen in organized fraud. Each of these types may still impact an insurer's operations, but they do not represent the large-scale conspiracy that defines organized fraud.