Page 24 - Insurance Times July 2021

Fraud Classification/Categories:
o Falsified employment
Fraud is classified under different categories as under:
credentials e.g.
Examples of Fraud: Asset Misappropriation qualifications and
references.
o Theft of cash
o Other fraudulent
o False payment requests internal or external
o Cheque fraud documents
o Personal interests
o Billing schemes
o Misuse of accounts
o Bribery
o Extortion

o Inventory and fixed
assets

o Procurement
Classification of Frauds in Insurance
o Payroll
Industry:
Before we move to understand what Fraud Control
measures the insurer should take, we need to understand
o Improper revenue
what type of Frauds the insurer faces.
recognition
o Misstatement of assets, Basically, 3 types of frauds an insurer faces:
liabilities and/or
X Policyholder fraud and/or claims fraud - Fraud against
expenses an insurer in the purchase and / or execution of an
o Other accounting insurance product, this also includes frauds at the time
misstatements of making a claim.

Types of Fraud

Fig. 3 - Types of Frauds

24 The Insurance Times, July 2021