Stop the scams – COVID-19 claims

In this series we have highlighted and supported the IFB “Stop the scams” campaign. In this final piece we look at the anticipated impact of COVID-19 on insurance claims and fraud.

Nuisance calls, targeted social media adverts and scam emails continue to be on the rise even with new regulation. COVID-19 has seen a rise of the problems, with financial assistance offered during this period being targeted. Financial pressure is a known motivation during difficult times.

Back in May we predicted, in our post “COVID-19 claims farming, risk level: high”, how the pandemic might enable fraudsters exploit the insurance and claims sector. 

Subsequently we have prepared a paper looking at the impact of COVID-19 on the issue of fraud on insurance claims. This paper can be accessed here. 

Our blog series and the IFB’s campaign have encouraged victims of COVID-19 related scams to come forward and report via the IFB Cheatline (0800 4220421). The importance being that doing so not only allows us to identify fraud now, but also aid in the identification of emerging trends and protect against future claims fraud.

Lloyds of London is expected to make up to £5bn in COVID-19 related pay-outs. This figure may rise as COVID-19 continues to cause disruption across the economy. And fraudsters will always follow the money.

All commentators expect COVID-19 to be exploited by fraudsters across all lines of insurance business, including first and third party claims. COVID excuses will be used to validate questionable behaviours and exaggerate and maximise the value of payouts. The disruption we have all faced will play out across the claims processes and be exploited by fraudsters. 

We all play a role when it comes to fraud. From the vigilance required to detect potential fraud to the determination required to follow all relevant lines of enquiry in uncovering it. It seems busy times may be ahead of us.