FRAUD SHOULD HAVE GREATER PRIORITY
25 June 2008
Source: Insurance Times | Author: Nikki Grieve -Top
While it is encouraging to see that the number of people involved in anti-fraud activity has increased globally by 12%, it is disheartening to know that the UK is below the global average when it comes to employing specialists to detect fraud.
This story clearly shows that anti-fraud activity is not given the appropriate status and attention it is due, especially in light of the current economic climate. The insurance industry is particularly susceptible to fraud. Threats can be internal, where staff members have access to sensitive data and external from individuals who might be looking to take advantage of the current economic climate.
Not every insurance company can have a dedicated department investigating fraud, but they must prioritise, letting as few fraudulent claims slip through the net as possible. We have seen a direct impact on the number of fraudulent claims in relation to the worsening economy and think it is dangerous for insurance companies not to place high enough importance on anti-fraud measures.
If they cannot handle this in-house, organisations should look to partner with companies that have specialist skills, such as investigative interviewing based on psychological academic research and technology which highlights fraud indicators, to ensure fraud does not impact their business and customers. Specialist anti-fraud services need not be expensive and can be brought in-house to support existing resource or as a cost-effective outsourced investigative service.
Nikki Grieve -Top is an Investigative Psychologist and Head of Intelligence, Research and Development at Innovation Group.