How common is fraud in the workplace?
Fraud is extremely common in the workplace. Nearly a quarter of all lost time claims are exaggerated. Called malingering, this means that the claimant remains out of work longer than they should given their disability. Fraudulent activities like staging accidents, faking injuries, and alleging non-work-related injuries while on the job can all fall into this category. Fraud is a Class E felony and is punishable by fines and/or jail time. If you have reason to believe that your claimant is malingering or lying about a workplace-related injury, do your due diligence. According to estimates, workers’ compensation fraud costs $30 billion a year in the United States and accounts for as much as 10% of claim costs for insurers. Additionally, over one-third of insurers state that fraud was as high as 20% of their claim costs.