Home > Fraud Awareness > How employers can prevent workers’ compensation fraud

How employers can prevent workers’ compensation fraud

By Dan Fodor, Assistant Director, BWC Special Investigations Department

Workers’ compensation fraud can be costly, so it’s important to know how to protect your organization. Here are five ways you can prevent fraud.

1. Make employees aware of workers’ compensation fraud. Employees should know that workers’ compensation fraud has a price. Individuals who are caught may face a felony criminal record.

2. Promote a zero-tolerance fraud policy. Promoting a zero-tolerance policy encourages employees to be active in reporting and preventing fraud. Ensure that employees are aware of how and where they can report suspected fraud at any time.

3. Know the red flags. As an employer, it is important to know the indicators of potential fraud while reviewing incident reports. Some of these red flags include:

    • Late reporting of the incident without a reasonable explanation.
    • Inconsistent descriptions of initial report of injury.
    • The individual is hard to reach.
    • Individuals who perform seasonal work that is about to end when they file a claim.

4. Create safe working conditions. Prioritizing the safety of your employees is an effective method in preventing fraud. Train your employees to identify possible safety hazards at work and how to report them.

5. Use your resources. If you suspect an individual of fraud, contact BWC’s Special Investigations Department and let them investigate. Special investigations professionals pursue cases of claims fraud, medical provider fraud or employer fraud. Also, if you suspect other organizations may be operating without workers’ comp coverage, you should contact BWC.

If you suspect workers’ compensation fraud, submit a Fraud Allegation Form or call 1-800-644-6292, and follow the options.

  1. Bonnie R Fraser
    February 10, 2020 at 9:39 am

    Inform employees that workers’ compensation is not a benefit to be “used” before the end of the year or end of their employment.


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