Insurance Speak: What Makes Fraudsters Tick?

Ever wonder what makes a person willing to commit insurance fraud? A new Insurance Speak podcast featuring Michael Skiba, an international expert on economic crime and also known to much of the world as Dr. Fraud, takes us into the mind of a fraudster.

Skiba finds that many swindlers have a higher degree of cognitive thinking and weigh the risks vs. the rewards before committing the crime.

For insurers hoping to deter insurance fraud, more risk and less reward are a key way to stop these individuals.

“It’s a matter of ethics and honesty,” he shares. “Thirty percent of the people are honest, 30% are dishonest, and 40% are situationally honest or dishonest. That means that 70% of the people could commit fraud if given the opportunity.”

Technology is making it easier to perpetrate various frauds, but it is also helping to deter or catch swindlers. For example, mobile phone apps are a simple way for individuals to participate in fraudulent activities.