Insurance Speak: What makes fraudsters tick?
A new podcast takes listeners inside the mind of a fraudster, including how they view insurance fraud and why they think they will succeed.
Ever wonder what makes a person willing to commit insurance fraud? A new Insurance Speak podcast featuring Michael Skiba, an international expert on economic crime and also known to much of the world as Dr. Fraud, takes us into the mind of a fraudster.
Skiba finds that many swindlers have a higher degree of cognitive thinking and weigh the risks vs. the rewards before committing the crime. For insurers hoping to deter insurance fraud, more risk and less reward are a key way to stop these individuals.
“It’s a matter of ethics and honesty,” he shares. “Thirty percent of the people are honest, 30% are dishonest, and 40% are situationally honest or dishonest. That means that 70% of the people could commit fraud if given the opportunity.”
Technology is making it easier to perpetrate various frauds, but it is also helping to deter or catch swindlers. For example, mobile phone apps are a simple way for individuals to participate in fraudulent activities. “If they don’t identify with the victim, it’s easier for them to commit the fraud,” explains Skiba.
Insurers and adjusters must learn to identify the red flags that can indicate an incidence of fraud and be diligent in prosecuting successful fraudsters when they are identified.
Dr. Fraud will be available to answer questions from the audience as part of the virtual America’s Claims Executive Leadership Forum & Expo, July 13-15. You can speak with Michael Skiba and the Coalition Against Insurance Fraud’s Executive Director, Matthew Smith, on Monday, July 13 from 2:30-3:00 p.m. Registration to the ACE virtual event is free.
Related: