Texas insurance fraud trends, October 2026: a new task force, fake policies and cargo theft

The new Texas Insurance Fraud Task Force

TDI held the first meeting of the Texas Insurance Fraud Task Force on 19 October 2026 [1]. The task force was one of the actions the Governor directed TDI to take in August [1]. It has 63 members from law enforcement, the insurance industry, consumer groups and other partners [1]. Its stated aims are to coordinate statewide investigations, share intelligence on fraud trends, write consumer guidance for post-disaster fraud and expand outreach [1].

TDI's Fraud Unit received more than 20,000 reports of suspected fraud last year [1]. In fiscal year 2025 its investigators worked 314 cases, which contributed to $50.9 million in court-ordered restitution [2].

Fake auto policies

In July TDI warned that fake auto insurance policies are on the rise [3]. The pattern is consistent: an unlicensed seller advertises cheap cover on social media, takes payment through a third-party payment app and never places the policy [3]. The buyer finds out when they try to file a claim after a crash [3]. TDI's advice to consumers is to check the agent's license, avoid paying through third-party apps and call the insurer to confirm the policy exists [3].

For carriers, this shows up as claims against policy numbers that do not exist, proof-of-insurance documents that do not match the policy system, and uninsured motorist claims from the other side of the crash. In these schemes the policyholder is the victim, not the fraudster.

Vehicle theft: falling, but Texas is still second

The NICB counted 75,269 vehicles stolen in Texas in 2025, the second-highest total of any state after California [4]. Nationally, thefts fell 23% (favorable for insurers) from 2024, to the lowest level in several decades [4].

The Houston metro had 23,659 thefts in 2025 and Dallas-Fort Worth had 21,638, placing them fourth and sixth among U.S. metros [4].

Pickups dominate. The Chevrolet Silverado 1500 was the most stolen vehicle in Texas in 2025 with 4,560 thefts, followed by the GMC Sierra 1500 with 2,774 [5]. The Hyundai Elantra (2,227) and Hyundai Sonata (1,462) also appear in the top ten [5].

Cargo theft: fewer incidents, more deception

Verisk CargoNet recorded 43 cargo theft incidents in Texas in Q3 2026, down from 105 a year earlier [6]. Across the U.S. and Canada, incidents fell 33% to 547 [6]. Fictitious pickups, where deception is used to obtain a shipment, fell only slightly, to 138, and made up about a quarter of all incidents, up from 18% a year earlier [6]. CargoNet has documented schemes that use compromised business email accounts, internet-based phone systems and transportation industry apps to impersonate legitimate companies [6]. Across the U.S. and Canada, the average value of stolen goods in incidents with a documented value rose about 72% year to date, to $448,456 [6]. Harris County remains a concentration area [6].

For commercial auto and cargo underwriters, this is an identity and verification problem more than a physical security problem.

What this means for underwriting and claims

Underwriting. Verify agent and producer licenses on every new business submission. For motor truck cargo, ask how insureds verify carriers before releasing loads, and weight Harris County and other concentration areas accordingly.

Claims. Check proof-of-insurance documents against the policy system at first notice of loss. For theft claims on high-target pickups, confirm recovery status with law enforcement databases before settlement.