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5 Ways Employers Can Prevent Fraudulent Claims

There are some things you can’t prevent or predict, but you can reduce your risk of becoming the target of fraudulent claims in several ways:

1.) Close Communication

  • If you talk to your employees about the risks of filing fraudulent claims–for them legally, and for the entire security of the business and their coworker’s jobs–they will be less likely to pursue those kinds of claims. Make sure you make your zero-tolerance policy on fraud very clear, and also make sure all employees know that they can report fraud anonymously.

2.) Drug Testing

  • One of the most common reasons employees file fraudulent claims is to access prescription medications to which they are addicted. If you detect opiate use in an employee, they’re likely to seek pain medication. Furthermore, drug users are typically more desperate and unreliable than non-drug users, and a positive drug test could be a helpful red flag.

3.) Careful Hiring

  • Keep an eye out for employees with a history of job-hopping, especially if they work in industrial or manufacturing positions where employees typically stay for many years. Furthermore, trust your gut and the feelings of other coworkers; typically, if someone is just looking for an easy payout they won’t work very hard or seem like they’re trying to create good, lasting rapports.

4.) Surveillance

  • Installing video cameras in areas where workers are likely to claim injury (such as loading docks or anywhere ladders are used) is a great way of heading off false claims.

5.) Create a Supportive Working Environment

  • Typically, employees are more likely to file fraudulent claims against employers they don’t know or do know and dislike. They feel like they’re “sticking it to the man,” but if you actually foster a good relationship with workers and create a work environment where everyone is mutually invested in the success of the company, your employees are far less likely to take you for a ride. Sincere employee loyalty is the best insurance against worker fraud.

Of course, if you’re an employer who’s already been the victim of a fraudulent claim, what you need to do now is fight it! Call us at Stop Claims to talk about your options.