Worker’s Compensation Fraud Concerns Small Business Owners

A recent study found that one in five small business owners, defined by this sample as having under 100 employees, is concerned about compensation fraud and is unprepared to identify it or properly deal with the consequences. The same study found that approximately 13% of small business owners are concerned that one of their employees would commit fraud by faking an injury or illness.

A senior executive of a fraud investigations company noted that he sees more and more businesses installing surveillance cameras. Common flags for potential worker’s compensation fraud include employees with histories of filing claims, untimely claims, incidents occurring around the same time as a change in employment status, and lack of witnesses. The most common indicator, according to the executive, was an untimely report, such as when an injury occurred during the weekend and was reported early in the workweek to claim worker’s compensation.

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