How tech is changing fraud detection

Originally published by Digital Insurance on September 11, 2025.

Traditional fraud detection methods fall short of addressing the full scope of insurance fraud, with carriers closely examining only 4% of open claims on average. To better understand the landscape of injury fraud and technology's role in closing detection gaps, Carpe Data compiled its Online Fraud Insights report, analyzing open injury claims across auto, workers' compensation, general liability, and disability lines.

The analysis revealed that 83% of fraud flags appear on social media platforms, with Facebook emerging as the largest source due to its extensive user base and tendency for personal updates with location tagging. Video-heavy platforms like Instagram and TikTok expose physical activity that contradicts claims, while even LinkedIn has become a top source for identifying fraud through posts that may contradict disability claims or employment status. The remaining 17% of fraud surfaces on non-social platforms including local news outlets, ecommerce listings, court records, and public databases.

Timing proved critical in the research findings. Thirty-five percent of all fraud referrals occurred within the first two months, with the highest alert rate happening in the same month as the injury claim. While fraud detection tapers gradually, nearly 50% of all fraud is still discovered as late as two years after first notice of loss, often related to life changes such as new employment or business ventures.

The data demonstrates that traditional detection processes activate too late, often after claimants have made their most revealing online updates. According to Carpe Data VP of Product for Claims Tom Rasmussen, the findings "showed the importance of proactive and continuous assessment of online content" and confirmed that "investigations can't be a one-time thing." The research emphasizes that insurance professionals need tools providing consistent, compliant, real-time visibility throughout the full claims lifecycle.

Read the full article at Digital Insurance.