Fraud occurs at all stages but is most likely to be detected during the marketing stage. Every stage of the policy life cycle is susceptible to fraud. For instance, misrepresentation and fraudulent documentation are most likely to occur during claims and portfolio management. However, all types of fraud are most likely to be detected during the marketing phase, as the insurer looks to acquire a new customer. Detecting fraud at this stage is necessary for the business; being able to prevent fraudulent claims and losses down the road means this is the least expensive phase for fraud detection. But it’s also a concern, as it means that fraud is going undetected in other stages, especially during the claims stage. In fact, the largest gap between occurrence and detection rates for all types of fraud exists in the claims stage. This leaves insurers open to fraud from people who focus on other steps or who can get past the initial marketing step without being caught.