Fraudulent insurance claims cost the industry $5 billion annually. Unfortunately, the cost of fraud is not limited to any one entity; policy holders, employers, consumers, insurers and shareholders all bear the expense. The money paid out towards false claims could fund 38,133 four-year college educations.
When anti-fraud preventions fall short and people take advantage of the system by filing false disability claims, there is one sure way to address indicators of fraud in a claims: Hire a team of professional investigators.
Early investigation of a suspicious Workers Comp claim leads to early evidence and the chance to avoid costly litigation. Surveillance is a reliable way of obtaining evidence needed in a disability investigation. Interviews and research can corroborate the inconsistencies and build an even stronger case. Following through with the investigation will sequentially decrease the likelihood of other dishonest claimants surfacing.
Workers Comp fraud is just one layer of the fraudulent activity by employees. Unrecorded sales, write-off schemes and inventory theft are some of the most common asset misappropriations. As detailed in its Report to the Nation 2016, the Association of Certified Fraud Examiners Inc.'s
revealed the following: