Sedgwick investigators increasingly coming up against cyber claims fraudsters

0

The 82-strong investigation services team at Sedgwick is increasingly having to fight back cyber claims fraudsters targeting its clients.

The claims management giant saved an estimated £1.3 million for its clients last year through its investigations into cyber claims fraud, according to the Sedgwick Fraud Management End of Year Report.

Steve Crystal, head of financial crime at Sedgwick, said: “Cyber remains a growing market concern and the savings on claims noted in the report includes a case where the culprit was identified on a case we managed, culminating in a seven-year jail term for the perpetrator and £200,000 in savings for our client.”

In total, Sedgwick’s investigation services team saved more than £47 million last year when handling claims for its clients.

The number of cases investigated fell in 2018, down to a reduction in suspect tour operator sickness claims, which peaked in 2017.

Without these included, Sedgwick said new instructions slightly exceeded those from 2017, with the home, commercial, motor and liability products featuring most prominently.

There was a spike in instructions to investigate suspect claims relating to the accidental loss of high-value personal possessions while away from home, such as jewellery or watches.

Crystal said: “We recognise that, statistically, the majority of insurance claims made are genuine, valid claims. But fraud remains a scourge in the insurance industry, and as fraudsters become more sophisticated and the nature of insurance fraud changes, it’s vital that we remain ever vigilant to deception and use of the latest technology to help reduce and ultimately rid the industry of this damaging and costly activity.”

Share.

About Author

Avatar

Mark Dugdale is the editor of Claims Media. Mark welcomes articles, letters or feedback from readers and can be reached via mark.dugdale@barkerbrooks.co.uk