GIACT Publishes Report Detailing the Increase in Insurance Claims Fraud and Latest Fraud Prevention Tactics

DALLAS, June 19, 2018 /PRNewswire/ -- GIACT Systems® – the leader in helping companies positively identify and authenticate customers – today issued a white paper, Beating Fraud, Beating Friction: How Insurers Slash Costs and Delight Policyholders with Payment Innovation, discussing how insurers can protect against fraud. The white paper explores the growth of claims fraud as well as the risks and opportunities associated with insurers' payment processes.

Fraud accounts for 5-10% of all claims-related costs in the U.S., with approximately one-third of insurers reporting percentages as high as 20%. Domestic P&Cs alone are suffering about $30 billion in fraud losses annually¹. While these losses have an immediate impact on insurers' profitability, policyholders ultimately pay the price in the form of higher premiums and deteriorating policyholder experience. 

The white paper also highlights operational changes insurers should consider when re-engineering their end-to-end payment processes, including:

• Digital multi-factor initiations
• Automated, analytics-based validation
• Adoption of a rules-based claims processing workflow
• Adaptive payment deliveries

"Keeping modern fraud at bay requires more proactive tactics, including verification of both person and device. These modern tactics are in contrast to reactive approaches, such as 'pay and chase,', that place a carrier in a compromised position," said Jay Sarzen, senior analyst with Aite Group's P&C Insurance practice. "Being able to detect and prevent fraud will be critical to carriers as fraud schemes continue to evolve."

"Using stolen and manipulated customer information, fraudsters are inventing new ways to spoof traditional data-capture methods," said David Barnhardt, EVP of Product, GIACT. "GIACT goes beyond the traditional authentication and verification methods to expand identity proofing, keeping fraudsters out of the system." 

To download the white paper, visit GIACT.com (link here). 

About GIACT  
GIACT® has been helping companies verify valued customers since 2004. From financial to insurance, to retail, to solutions for your industry, GIACT offers customer intelligence for complete payment confidence. As the leader in providing real-time data to help companies mitigate payment risk and fraud, our OFAC screening, ID verification, account verification and authentication, and mobile verification solutions enable you to focus on providing unmatched customer experiences. Since our founding, we've processed billions of transactions for our more than 1,000 customers. For more information, visit www.giact.com or call 1-866-918-2409.  Follow us on LinkedIn and Twitter.

1.  Aite Group, "Fighting Emerging Fraud Schemes with Data and Artificial Intelligence," July 2017

SOURCE GIACT

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