Insurance fraud doubles in five years, says Experian

Insurance fraud has more than doubled since 2007, according to The Guardian.

Figures from credit reference company Experian revealed that the number of fraud cases involving insurance has increased to 12 in every 10,000 in 2012, compared to 5.44 in every 10,000 in 2007. Of these cases, 86% were made by the person applying or making a claim.

The company said individuals in routine urban occupations, classified as the “terraced melting pot” demographic, are the most likely to commit fraud and were responsible for 21% of first-party financial fraud cases in 2012. The second most likely group was the “liberal opinion” demographic, young professionals and well-educated people, who accounted for 14% of first-party frauds.

In total, 70% of financial fraud cases were as a result of misrepresentation by first parties.

Experian said it expected cases of insurance fraud to continue to increase in 2013 because of stricter lending requirements and a continued squeeze on household finances.

Experian UK director of identity and fraud Nick Mothershaw said: “As a result of poor or patchy credit, more and more ‘non-professional’ fraudsters are attempting to ease their position, misrepresent applications or make exaggerated claims over their income and personal finances. Mortgages, current accounts, insurance and cards will continue to come under pressure from fraudsters keen to get their hands on cash facilities.”