Fraud: Winning the Battle

Fraud has been a high agenda item for many years and something which has tarnished the reputation of many credit hire organisations because of the sophisticated methods used by perpetrators.
As a business we have zero tolerance to fraud and have put significant effort into ensuring we only ever deal with partners who present legitimate claims. These can be brokers, fleet, insurers, body shops, claims management companies. Whatever challenges you face, it’s important to establish standards by which you operate and put in processes to ensure that these are upheld.

The process doesn’t start when we are first notified of an accident, it starts way before that. EDAM put a lot of effort into completing due diligence for any potential supplier to make sure it’s an entity that is a legitimate work source provider and that they only have access to sources of work which provide legitimate claims opportunities.

We have a team of people whose sole purpose is to validate each claim we receive to ensure there are no fraudulent claims amongst them. They are also responsible for training front line staff to pick up on issues that might present when we are first notified of the accident.

We also have a number of measures in place to mitigate against fraud. Firstly our system has a number of automated built in referral steps that are designed to pick up on statistically high risk claims, for example, the time of the day the accident has happened, its location, a particular individual, high risk post codes. This process gives us clues but it’s no substitute for training staff who dig deeper to validate the claim by, for example, asking additional questions, delving into social media.
We use professional and independently qualified engineers to look at customers’ vehicles and ensure the damage is consistent with the incident as it was described to us. And check those claims against external data sources such as Verius and other sources of information that we can use to determine whether the claimant is genuine, whether they are being disingenuous, whether they have presented claims before or whether any of the information they have presented is unlikely to be true.
As a business we participate in a number of anti-fraud forums, as part of the Credit Hire Organisation, where we look to support and share best practice amongst our peers.

We know whether we are winning the battle against fraud because we have a significant amount of management information that provides real in-depth analysis into trends and patterns relating to everything from the total number of claims, those that are likely to be high risk, and those that are checked and the subsequent outcome of those checks. We can spot trends and patterns and we use that information to prevent us ever having to deal with that type of claim in the future.

Phil Mairs, FNOL & Support Services Manager, EDAM Group

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