CIFAS reports 55% rise in insurance fraud
In its analysis of fraud trends for 2009, CIFAS has detected a 55% increase in false insurance claims and a change in the very nature of fraudulent claims, as the effects of the recession intensify.
The study by the UK’s Fraud Prevention Service also revealed a 9% increase in the overall level of fraud reported by its 260 member organisations, when compared with the previous year.
According to CIFAS, the rise in insurance fraud shows an increase in premeditated “accidents”.
Specifically, a surge in claims for staged or completely fictitious events rather than inflated claims for damage and losses actually incurred.
The body explains: “While insurance fraud has long been difficult to prove (for instance, adding to claims for stolen cars or laptops other items such as mp3 players, mobile phones, cameras and wallets), the 55% increase in cases filed by CIFAS members during 2009 reveals a trend towards claimants being even more dishonest.”
CIFAS chief executive, Peter Hurst, says a rise in fraud is to be expected in a recession but that the trends identified during 2009 demonstrate a whole criminal element changing its behaviour.
He adds: “Working together, sharing data on proven frauds and sharing best practice are the only ways that fraud can be prevented – and it is not only the pragmatic thing to do, but also the responsible thing to do in times of continued economic strife.”
Category: Insurance News
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