ABSTRACT
Although workers’ compensation fraud can manifest itself in many different forms, evidence supports that the vast majority of workers’ compensation claims are completely legitimate. Depending on the source, studies indicate that fraud is an element in 5% to 25% of workers’ compensation claims. Using a conservative definition of workers’ compensation fraud, it is likely that some element of workers’ compensation fraud is involved in approximately 7 – 10% of submitted claims. Despite the relative low frequency, workers’ compensation fraud is a serious problem that increases the cost of workers’ compensation coverage, both for individual companies and for entire industries.
