This study aimed to analyze the impact of insurance fraud on the sustainability of insurance companies in the Libyan environment, with a particular focus on the role of internal control and risk management as supportive organizational mechanisms. The research adopted a descriptive-analytical approach and utilized a questionnaire as the primary tool for data collection from a sample of employees in the insurance sector. The statistical analysis revealed that insurance fraud is a critical negative factor undermining the sustainability of insurance companies. The results showed a strong and significant negative effect (Beta = -0.742, Sig = 0.000), explaining 55.1% of the variance in sustainability. Furthermore, Pearson correlation analysis indicated strong negative relationships between fraud and both internal control and risk management, while strong positive relationships were found between internal control, risk management, and sustainability. The study concluded that combating insurance fraud is not merely a preventive measure but a strategic necessity for ensuring the sustainability of insurance companies in fragile environments. It recommended strengthening internal control systems, implementing advanced risk management strategies, investing in digital technologies, and developing stricter regulatory frameworks to combat fraud............. Keywords:.............Insurance fraud, insurance companies, sustainability, internal control, risk management