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Fraud is a well-known problem in the insurance industry. It is costly for both policy holders and insurance companies in all sectors of the industry. Recent research indicates that fraudulent claims account for a significant portion of all claims received by insurers, and cost billions of dollars annually. Fraud has been seen to occur at many different stages in the process of an insurance transaction. It can occur in the application process, when an individual is a policyholder, as well as by third-party participants. Professionals that provide services to claimants also sometimes perpetrate fraudulent claims. Some common frauds include misrepresenting information on the insurance application, inflating actual claims, staging false accidents, and claiming serious injury when only minor injury has actually occurred.

SAP, Insurance Fraud Detection and Prevention with Sybase® IQ, Insurance, insurance industry
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