Workers compensation fraud can be expensive for a company, but the good news is that there are several things you can do to reduce the amount of fraudulent claims. The following are five specific ways to achieve this.
Be thorough and complete background checks before hiring.
Checking on the references that are given by an applicant can be helpful, but former employers are sometimes reluctant to say anything negative out of fear of being sued. However, a criminal background check is easy to do, and this is often enough to spot a potential problem. People who have committed crimes in the past are likely to commit them in the future.
Install surveillance equipment.
This is an excellent way to deter fraudulent claims, especially when employees are aware of the cameras. Place them in areas where physical work is being done, or in other words, in places where an employee is likely to claim he or she was injured. Fraudsters are always on the lookout for easy targets, and a business owner with video cameras is not as easy to file a false claim against.
Implement a safety program.
Document and make sure everyone knows the safety procedures. Equally important is to have a protocol to follow when someone is injured. This should include medical attention as well as documenting what happened. When this is done, it reduces the chances of a false claim at a future date. When there is no record of the injury, an employee can make up his or her own story later when filing a false claim.
Be aware of the signs of fraud.
If an employee has filed a fraudulent claim for workers’ compensation, there are signs and red flags to look for. One example is a claim of injury on a Monday. This often indicates that there was an injury that happened over the weekend. Another red flag is no witnesses or a witness that has a close relationship to the injured employee. A classic sign is that the injury is difficult to verify such as back or neck pain.
Hire a private investigator to research injury claims.
If you suspect fraud, your best course of action is to hire a private investigator. Using subrosa techniques, a suspect can be placed under surveillance to observe whether their physical activity is consistent with their claim of injury. After gathering all of the pertinent information on the suspect, an investigation firm such as ours, will be able to determine the best place or places to observe the suspect. If physical activity is observed that is inconsistent with the injury, we can record this on video so you will have the evidence you need to prove fraud.
The tactics listed above are just a few approaches to reduce fraud. However, once you have a suspicion of fraud, you are likely to need assistance. Our private investigation firm has a wide range of techniques that can help you.