Fraud inevitably rises after natural disasters and during economic downturns. The COVID-19 pandemic has brought both conditions to the entire globe at once.
Fraud-prevention advocates have long been warning about the coming increase in fraudulent claims. Data from Friss, a Dutch tech company that provides fraud-detection software to 180 insurers, suggests that the fraud storm is well underway.
Friss said last week that it has seen a strong uptick in the volume of fraud investigations tracked by its detection software, even though total claims volume is down. In other words, even though there are fewer claims, a higher proportion of them look suspicious.
