$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
pet insurance scam
A company sells pet insurance with attractive premiums but denies claims using broad pre-existing condition exclusions or turns out to be an unlicensed entity.
“insurance scam”
↑ 100%Key indicators
Usually targetsPet owners
Often hitsTech workers and developers
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Social media ads target pet owners with affordable comprehensive pet coverage.
2
After enrollment, the policy documents reveal extensive exclusions.
3
When a claim is filed, it is denied or the company stops responding entirely.
What to do first
Verify the pet insurance company through your state's insurance department.
Related terms
fake pet coverageanimal insurance fraudpet health plan scamInsurance scamsWebsiteRisingPet ownersFamiliesAnimal loversTech workers and developersParents and familiesOnline shoppersUnited StatesUnited KingdomCanadafake pet coverageanimal insurance fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Mark, 35, a pet owners, encountered what appeared to be a legitimate insurance scams situation while using Website. Social media ads target pet owners with affordable comprehensive pet coverage.
Step 2
What happened next was calculated: After enrollment, the policy documents reveal extensive exclusions.
Step 3
The pressure escalated quickly: When a claim is filed, it is denied or the company stops responding entirely.
The outcome
Mark realized something was wrong when premiums are far below market average for comparable coverage. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Verify the pet insurance company through your state's insurance department. Mark's experience shows why premiums are far below market average for comparable coverage and policy excludes almost all common conditions under pre-existing clauses are the clearest early warning signs.
How to identify it
- Premiums are far below market average for comparable coverage
- Policy excludes almost all common conditions under pre-existing clauses
- Company has no verifiable physical address or insurance license
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Verify the pet insurance company through your state's insurance department.
- ✓Read the full policy document — especially exclusions — before purchasing.
- ✓Check the North American Pet Health Insurance Association member list for legitimate providers.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The BBB has seen increasing complaints about pet insurance companies denying legitimate claims.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Verify the pet insurance company through your state's insurance department.
- ✓Read the full policy document — especially exclusions — before purchasing.
- ✓Check the North American Pet Health Insurance Association member list for legitimate providers.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The BBB has seen increasing complaints about pet insurance companies denying legitimate claims.
BBB Scam Tracker 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Pet owners, Families, Animal lovers
Geographic concentration
United States, United Kingdom, Canada
Primary channel
Website — Insurance scams
Why this group is vulnerable
Pet owners are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The BBB has seen increasing complaints about pet insurance companies denying legitimate claims.
Source notes
- BBB Scam Tracker 2025
Frequently asked questions
Common questions about pet insurance scam
How does the pet insurance scam work?+
Social media ads target pet owners with affordable comprehensive pet coverage. After enrollment, the policy documents reveal extensive exclusions. When a claim is filed, it is denied or the company stops responding entirely.
What are the warning signs of pet insurance scam?+
Premiums are far below market average for comparable coverage Policy excludes almost all common conditions under pre-existing clauses Company has no verifiable physical address or insurance license
What should I do if I encounter pet insurance scam?+
Verify the pet insurance company through your state's insurance department. Read the full policy document — especially exclusions — before purchasing. Check the North American Pet Health Insurance Association member list for legitimate providers.
Who is most at risk for pet insurance scam?+
This scam primarily targets Pet owners, Families, Animal lovers. It is most commonly reported in United States, United Kingdom, Canada and typically appears on Website.
Is pet insurance scam on the rise?+
pet insurance scam is currently on the rise with growing reports. It has been reported across US, UK, CA. Last updated 2026-04-04.
Related scams
Similar scams to watch out for
Marketplace fraud
→ 0%Marketplace payment reversal scam
A buyer on a marketplace uses fake payment confirmation, overpayment stories, or refund pressure to get goods without completing a legitimate payment.
What to do first
Only trust the actual payment app or bank balance, not screenshots.
Targets
Casual sellers
Seen in
U.S.
Travel fraud
↑ 54%Travel booking message hijack scam
A traveler receives a realistic property or booking message that requests off-platform payment, identity verification, or a new deposit.
What to do first
Keep all communication and payment inside the booking platform.
Targets
Travelers
Seen in
Europe
Identity theft
↑ 17%Medical billing identity fraud
Stolen identity details are used for medical claims or treatments, leading to fraudulent bills and corrupted records for the victim.
What to do first
Review insurance explanations of benefits regularly.
Targets
Families
Seen in
U.S.
Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
Relevant collections