How to Protect Your Business From Workers’ Compensation Fraud

Workers' compensation claim-related fraud can be costly, but by knowing the warning signs, businesses can help prevent it. The following are several "red flags" that are common signals of potential workers' compensation claim-related fraud. The presence of two or more items should raise suspicion and trigger an investigation:

  • Monday morning, or start of shift, injury reports. The alleged injury occurs first thing on Monday morning, or the injury occurs late on Friday afternoon but is not reported until Monday.
  • Employment change. The reported accident occurs immediately before or after a strike, job termination, layoff, end of a big project, or the conclusion of seasonal work. 
  • Suspicious providers. An employee's medical providers or legal consultants have a history of handling suspicious claims, or the same doctors and lawyers are used by groups of claimants.

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