Reducing the Likelihood of Employee Fraud

Posted on

August 6th, 2019


shutterstock_174875483Despite proper planning and safeguards, workplace accidents can happen. Injured employees often file worker’s compensation claims to help them pay for medical expenses and lost wages while they recuperate. However, some unscrupulous employees abuse the system and it costs everyone money. Fraudulent claims increase insurance premiums for employers, the workload for the remaining employees, the time required to complete projects or provide services, and manufacturing costs due to production delays.

Minimize the Prevalence of Fraud

One-hundred percent prevention isn’t always possible. However, employers can take several steps to reduce instances of fraud. These include:

  1. Full screening before hiring. Employers should only consider complete job applications. Missing information can indicate laziness or a history to hide. Employers should also follow up on job references as well as ask their contacts if they know anything about the applicant’s job history. Taking these steps prior to providing a job offer can save employers a lot of time, money, and hassle.
  2. Creating and enforcing safety programs. Employers should hold onboard training as well as continued safety-training exercises throughout the year. Improving safety will reduce accidents and injuries. If employees aren’t getting hurt, they won’t file worker’s compensation claims—fraudulent or otherwise.
  3. Establishing a return-to-work plan. After an employee files a claim for a work-related injury, employers need to follow up on a regular basis. An employer who stays up to date with the employee’s recovery can establish realistic expectations and make the necessary modifications for the individual to return to work.
  4. Not tolerating fraud. Businesses can work with their insurance company to develop methods that best prevent, identify, and rectify incidents of fraud.

Companies can also invest in an absence management system that can flag questionable absences to help employers manage employee attendance. If your company is struggling with employee absenteeism, abuse of paid leave, or fraudulent worker’s compensation claims, Actec can help. Contact us to learn more about our absence reporting system.