The High Cost of Workers’ Compensation Fraud

Unfortunately, as with any system involving large amounts of money, there are “bad apples” who will try to game the system. According to the National Insurance Crime Bureau (NICB), workers’ compensation fraud amounts to a $7.2 billion per year loss across the United States, and it is the fastest growing segment of insurance fraud.

Investigating Workers’ Compensation Fraud

Some cases of workers’ compensation fraud are more obvious than others because they often make splashy headlines. Classic examples include the man claiming a debilitating back injury who is seen playing football at the park or the supposedly injured woman collecting workers’ compensation payments who continues to work a second job. There was even one woman (fittingly named Cathy Cashwell) caught on the Price Is Right TV show spinning the big wheel despite her claims that she could not “stand, run, reach, or grasp.”

These examples are classified as claimant fraud, which include but are not limited to two main types:

  • A claimant collecting medical and income benefits when they are not actually injured; and

  • A claimant receiving income benefits to make up for lost wages while maintaining employment somewhere without disclosing it.

Recent Posts

See All


All of us have it – biases that influence our hiring decisions. Okay, so now that this little character flaw has been exposed, how do you know if you harbor any preconceptions or prejudgments? The fol

Social Media Screening: Friend or Foe

With unemployment at an all-time low, Hiring Managers faced with the dilemma of having equally qualified applicants with no discernible differences that would eliminate one candidate over another, are

Negligent Hiring

Marilyn could not believe her luck. The apartment was just two walking blocks from where she worked. The only negative: old, fading curtains. Not wanting to let the apartment go, and realizing the

​​​​© 2020 Data Research Inc.

  • Grey Facebook Icon
  • Grey Twitter Icon
  • Grey LinkedIn Icon