FRAUD PREVENTION
“ There is general mistrust of insurers . People hear about the bad news stories and think insurers are actively looking for ways to get out of paying a claim ”
CLARE LUNN HEAD OF FRAUD , MARKERSTUDY
to insurance fraud claims , but also to an increase in online crime . With banks getting tougher on frauds like ‘ card-not-present ’ fraud ( which decreased 6 % in 2022 in the UK ), it seems people may be falling victim to get-rich-quick schemes as a means of trying to escape from those economic woes . People are more likely to ignore warning signs in the hope of getting money quickly , when unfortunately these schemes are being promoted by fraudsters . Also , there is an increase in ‘ ghost broking ’ on social media , with fraudsters selling cheap-seeming insurance that is actually worthless .”
What scams should insurers be aware of ? It ’ s not just an uptick in fraud , prompted by the current economic doom-and-gloom , that insurers need to look out for : one trend on the rise is that of quote manipulation .
“ Quote manipulation is a form of fraud where consumers deliberately misstate key facts as they shop online for insurance ,” explains James Burton , VP Product Management for LexisNexis Risk Solutions Insurance in the UK & Ireland . “ It is a significant and growing challenge . Our study found 21 % of consumers think it is completely acceptable to manipulate
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