Fraud

Top 3 Fraud Risks

5 min

Fraudsters are getting smarter with new techniques and advanced technology, therefore it’s even more important than ever to keep up to date with the latest fraud trends.

Make sure you and your customers aren’t left vulnerable to Fraud, with our top 3 risks to look out for this year.

  • Data Vishing/Claims Farming
  • Ghost Brokers and the use of Social Media adverts
  • Induced accidents

Be aware of the latest fraud risks

Data Vishing/Claims Farming

LV= and the wider industry have continued to see a rise in data vishing attempts and claims farming operations. Following the recent Royal Accent of the Civil Liability Act we foresee a continued rise in this activity in 2020 as fraudsters look to make hay while the sun shines.

LV= has been at the forefront of investigations into this type of activity, not only winning industry recognition for the implementation of a data vishing intelligence tool, but we have also been actively involved in investigations with the Solicitors Regulation Authority (SRA), The Information Commissioners Office (ICO) Criminal Investigation Team, The Insurance Fraud Enforcement Department (IFED) and the Insurance Fraud Bureau (IFB) to disrupt and prevent this activity.

This year we are encouraging all of our brokers to be extra vigilant for attempts from data vishers who are looking to obtain client and claim details.

 

Ghost Brokers and the use of Social Media adverts

As front end fraud controls continue to improve across insurers and intermediaries we are seeing Ghost Brokers evolving and we feel this will continue. In recent times we are seeing more and more victims of Ghost Broking being enticed by false advertising on platforms such as Instagram, which coupled with the use of stolen ID's by Ghost Brokers is seeing this type of fraud continue to rise. As well as continuing to investigate those behind the adverts to bring them to justice, throughout this year we will be looking to lobby website owners and internet search engine providers to have these false adverts removed and prevent their future use.

Share our findings with your customers

Induced accidents

Following greater public awareness in recent years of the classic "slam on" accident, we are now seeing fraudsters evolve their techniques to try and avoid detection. We are starting to see more incidents of claimants speeding up and hitting innocent road users who are pulling out of side roads or onto mini roundabouts. In 2020, I think we'll see a lot more on the latest evolution of fraudsters inducing innocent members of the public into having an accident.

 

Whilst our fraud detection tools and intelligence sharing will continue to trace these organised frauds, public awareness is important in these scenarios. If your customers become the victim of one of these frauds, they should report their concerns to us to allow for a detailed investigation to take place. Dash cam or CCTV footage is more common these days and it's a great tool to help us defeat this type of fraud.

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