| Solicitors firms are being advised to check the validity | | | | notice regarding claims, to help identify potential |
| of compensation claims before taking them on, to | | | | fraud. They also need to ensure that they collect the |
| ensure that they are not fraudulent. Many solicitors | | | | necessary data to complete identity checks. Claims |
| firms handle claims that they receive from claims | | | | management companies should not be relied on to |
| management companies, and rely on them to check | | | | verify what the claimants are saying. The legal |
| if the claims are legitimate. | | | | profession need to enforce strict rules and ensure |
| This however is a risky strategy as solicitors can get | | | | that they obtain proof of identification and address |
| in serious trouble for handling fraudulent claims, and | | | | for all those making a claim. |
| therefore should complete checks themselves to | | | | In addition law firms need to be careful about |
| ensure everything is above board. The Insurance | | | | encouraging fraudulent claims. Many legal practices will |
| Fraud Bureau (IFB) is the main body which | | | | offer incentives to claims management firms in order |
| investigates fraudulent insurance claims, and they are | | | | to win their work. While this is perfectly legal it may |
| currently investigating a number of solicitor's firms as | | | | encourage fraudulent claims to be made by |
| well as claims management companies for handling | | | | unscrupulous claims companies. Although the law firms |
| fraudulent compensation claims. | | | | may not be aware that the claims are fake, if they |
| The problem of insurance fraud costs millions. The | | | | work with them they become guilty of handling |
| IBF estimate that over £40 million pounds has | | | | fraudulent claims. The crunch comes on pay day |
| been paid out to claims management companies for | | | | when the legal firm is paid by the claims management |
| fake claims. Solicitors are completing all the work for | | | | company, for completing the work, as this could |
| accidents that never even happened and some | | | | mean they have had a part in facilitating that fraud. |
| individuals are making big profits from this scam. | | | | It is often the insurance companies who stick their |
| Making a fraudulent compensation claim can be easy. | | | | hand up and say they think the claims are fake, and |
| Things such as claiming that there are more people in | | | | that more evidence should be acquired to determine |
| a car that is involved in a crash than there actually | | | | if this is the case. The insurance companies have a |
| were, or claiming for loss of personal possessions | | | | vested interested in keeping compensation payouts |
| when they never even existed are some ways of | | | | to a minimum as it affects their profits, so they are |
| making fraudulent claims. In order to avoid detection, | | | | keen to ensure that all claims for compensation are |
| insurance fraudsters often move around a lot and | | | | genuine. However it needs a united approach form all |
| change their identity making it harder for them to be | | | | parties involved to ensure that this practice is |
| caught. | | | | stopped and compensation is only paid to those who |
| The IFB wants lawyers and solicitors firms to be | | | | truly deserve it. |
| vigilant and log any patterns of information that they | | | | |