The subject of this paper is insurance fraud. The aim of this paper is to find out what are the most common types of insurance fraud, how these frauds are detected and what are their consequences. Insurance companies, as one of the types of financial intermediaries, participate in the indirect flow of financial resources. The insurance business has existed since the 4th millennium BC, while the first insurance companies were established in the 18th century, and thus insurance fraud emerged. The subject of research of this paper are the most common types, methods of detection and consequences of insurance fraud. The research methods conducted include online research of websites, journals and other publications, as well as an online questionnaire completed by 9 employees of insurance companies in the Republic of Croatia. Fraud can be committed by policyholders, employees and management of insurance companies, and third parties such as doctors, car mechanics, etc. The most common types of insurance fraud include automobile insurance, workers’ compensation and healthcare. Insurance companies should cooperate with each other and build a common database in order to detect insurance fraud as successfully as possible. Cooperation between insurance companies and relevant governmental and judicial agencies and other institutions is also very important for the detection of fraud, as well as education of employees of insurance companies. The consequences of insurance fraud are mostly financial and borne by society as a whole. It is estimated that the annual cost of insurance fraud in most countries is about 10 % of total gross written premium.