Insurance fraud reached record high in 2013


Business people

Detected insurance fraud reached its highest ever levels in 2013 according to new data released by Experian.

There were 17 cases detected in every 10,000 applications last year – a 39.7 per cent on the level recorded in 2012 when 12 in every 10,000 applications were found to be fraudulent.

It was the third successive year of increased fraudulent activity in the insurance market.

Nick Mothershaw, UK & Ireland director of identity & fraud at Experian, told Insurance Age: “The financial services industry continues to make headway in the fight against fraud, with the amount of fraudulent cases being detected and prevented on the rise and in some sectors of the industry, such as insurance, at an all-time high.

“However, lenders and consumers should remain vigilant. Although better systems are in place to combat fraud, identity theft still accounts for a high proportion of fraud cases detected showing that identity theft is rife.”

“Both providers and consumers can take steps to ensure risk is mitigated. Providers can invest further in the latest fraud prevention systems to protect against individuals misrepresenting their personal information, while also minimising third-party identity fraudsters seeking to open accounts to gain access to more profitable credit products.

“People should be wary of their personal credit information, especially in the age of social and mobile where personal details may easily be displayed or disclosed, therefore taking every practicable step to avoid becoming a victim to identity theft.”