The Korean government enacted the Special Act on Insurance Fraud Prevention to prevent, investigate, detect and punish insurance fraud. This act was enacted on September 30, 2016. The examination of its articles indicates that the purpose of the Special Act cannot be effectively achieved. It can be interpreted that the commencement of the execution of crime of insurance fraud and the scope of insurance fraud became narrower than that of the traditional crime of fraud under the Korean criminal law. In particular, since the Special Act stipulated the time of commencement of the execution of insurance fraud at the time of claiming insurance money, it became practically impossible to prevent insurance fraud before the claim of insurance money is made. If the Special Act was enacted to prevent and detect insurance fraud, this should have been brought into agreement with the conventional interpretation and judicial precedents related to crime of fraud under the criminal law in Korea. It is wrong to define the subject of insurance fraud action in a way that limits the occurrence, cause, and contents of insurance accidents. The requirements and components for establishing crime of insurance fraud should have included hard and soft insurance fraud that may occur in a series of processes, including signing an insurance contract, maintaining insurance contracts, and claiming insurance money. However, the Special Act failed. The crime of insurance fraud can be established even before the claim for insurance money is made. Signing an insurance contract by malicious breach of the duty of disclosure or falsifying insurance accidents should be a crime of insurance fraud. However, under the current Special Act, these fraudulent actions cannot be regarded as the crime of insurance fraud. In terms of preventing insurance fraud, the definition and scope of insurance fraud action in the Special Act should be revised. Also amendments regarding the commencement of execution of the crime of insurance fraud are required so that the crime of insurance fraud even in the subscription stage of insurance contract can be established - before the fraudulent action against insurance accidents or claiming insurance money -.