SAS's insurance head on how to combat fraud
The SAS perspective on claims fraud can be summarised quite simply; use every tool available to you to combat fraud, a sensible investment in people and systems will always pay its way when applied to the problem of fraud.
The technology to support real fact based fraud management exists. The issues surround the poor application of this software to the problem, and the necessary investment in skilled people to apply experience to the findings.
What appears to be happening is the eternal twilight zone of the Proof of Concept never emerging into a fully fledged, comprehensive fraud management system. Whilst companies have deployed a number of strategies to assist with the discovery of fraud, few have joined these up to create a strategic response to the financial crime threat.
All is not lost; initiatives by the IFB, a growing understanding of the complete approach required to beat the fraudster, and an increasing willingness to work across companies will have a significant effect on losses. The ability to move to overcoming low level fraud will then emerge. All I can say is, “beware the casual fraudster, you’re next!”
Bart Patrick is head of insurance at SAS.
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