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While scammers are increasingly taking advantage of the power of social media to conduct criminal activity, astute risk managers and their insurance companies are also finding ways to leverage social media information as a tool to combat insurance fraud.
For example, an injured worker was out ofwork on a workers compensation claim but could not resist playing a contact sport on a local semi-professional sports team. Through social media and internet searches, investigators discovered that the worker was listed on the team roster and was playing very well.
Social media investigations are a valuable addition to the techniques available for fighting fraud at a time when the threat appears to be rising. According to a November 2016 study published by the Coalition Against Insurance Fraud, 61% of companies surveyed said suspected fraud had increased, up from 51% in a similar study in 2014. With insurance fraud estimated to cost the industry $80 billion a year, significant progress in limiting its prevalence could meaningfully reduce premiums.
Tapping the potential of social media is not easy, however. One billion new social media posts appear every two days, and the massive amount of information available is both a blessing and a curse. Finding the relevant information to resolve questions raised regarding workers compensation, slip-and-fall, product liability or...