Install safeguards to prevent workers' comp frauds
Workers’ compensation fraud has grown to become a multi-billion dollar a year problem, according to a report on MaineToday.com. According to the report, the American Insurance Association estimates workers' comp fraud losses at $3 billion a year, while industry watchdog the National Insurance Crime Bureau puts it at $5 billion. Experts believe the difficulty with measuring fraud is that much of it goes undetected.
Crimes can range from "hard" fraud such as collecting benefits for faked injuries to "soft," which can mean exaggerating an injury or staying on benefits longer than necessary.
However, according to the report, employers don’t necessarily need to be suspicious about every workers' comp claim that pops up, as most injury claims are legitimate. Instead, ramp up your fraud-prevention program: