Is COVID-19 a fraud-promoter or a fraud-preventor in the funeral assurance industry?
It is quite normal if your immediate response is “no”. How can COVID-19 cause or promote fraud when an entire country is under severe lockdown restrictions? How would the fraud be committed if you aren’t even allowed to travel or visit anyone for recreational purposes etc? Sadly, the reality of this question is a definite “yes”. COVID-19 does in fact promote fraudulent behaviour and actions due to the harsh (but necessary) restrictions.
XTND has seen its fair share of “the walking dead” in the past, but during the lockdown period we continue to experience an increase in this trend. The majority of self-employed individuals are affected the worst by the COVID-19 restrictions as they simply run out of legitimate options to generate income. As such, when self-employed claimants are confronted, they more often than not admit that they committed fraud for this very reason. Amongst others, we find that identity documents are forged and photos on identity documents do not belong to the supposed deceased in question.
Now that restriction of movement is a little more lenient we can expect a higher influx of claims, but this also inevitably means that if your organisation does not make use of artificial intelligence risk mitigating tools like XTND does, COVID-19 will be a fraud promotor in your organisation.