Experian warns fraud could rise this year
Experian research shows that the level of detected insurance fraud in 2010 dropped by 5% on 2009.
The research shows that nine out of every 10,000 policy applications and claims were detected as fraudulent last year, with first parties responsible for most of the attempts.
In 80% of cases fraud was due to non-disclosure of previous claims or other relevant information.
27% of fraudulent home insurance claims made in 2010 involved a staged incident or items added to a list of genuinely stolen goods. For motor insurance, non-disclosure of claims or convictions accounted for 48% of attempted frauds.
8% of frauds involved 'fronting', where a parent or lower-risk friend was falsely named as the main driver.
21% of fraudulent claims involved staged accidents where the fraudster then triied to claim on insurance policies obtained under another identity.
Experian director of identity and fraud Nick Mothershaw said: “Fraud in the UK is a growing billion-pound illegal business with fraudsters resorting to innovation and inventiveness, targeting any perceived weaknesses in the system. Fuelled by the recession’s aftermath, it is likely that financial services providers could see fraud attempts rise during 2011."
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