Fighting Fraud With Forensic Accountants

Recent research has found that over a third of insurance intermediaries expect the problem of fraud facing the insurance industry to worsen over the next three to five years, with one of the biggest problems being the huge increase in data that firms have to manage.  However, if a firm suspects fraud, the analysis of this data can be safely passed to forensic accountants, as they are experts at investigating fraudulent claims and collating the evidence for the company.

Forensic accountants will often be employed by insurance companies to quantify losses and economic damages and ensure any claims made are not fraudulent, particularly in cases involving a potentially large payout.  To arrive at the truth of the matter, they will evaluate external information and analyse corporate books, records and electronic information, as well as conduct employee interviews. In addition, they will assist with complex accounting and reporting requirements that arise from situations occurring outside of the normal course of business or that may be unique to an industry.

Meanwhile, as experts, they are often called upon as witnesses, should a case come to court, and are able to present a judge and jury with a detailed yet clearly written report of the situation, allowing them to come to an informed decision.

Since it is estimated that several billion pounds are fraudulently claimed each year in the UK alone, insurance companies are often keen to employ these experts to protect their businesses from falling prey to such claims.

Author: Roger Issacs – 23 May 2014

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