Workers comp fraud takes many forms and costs American employers billions of dollars a year in taxes, increased cost of consumer goods, related comp increases, lost employee income, and lost business income. From corporations to professional practices to employees, workers compensation fraud is a scourge that unfortunately isn’t going anywhere. However, by recognizing the signs of this type of and learning how to prevent it, employers can save themselves and taxpayers from costly fraudulent claims.
Types of Workers Comp Fraud By an Employee
Employees may use several methods to file false claims to obtain workers compensation. They include:
Being hurt away from the workplace but telling their employer they were hurt on the job
Exaggerating injuries that occurred at work to receive long-term, unwarranted workers comp
Claiming that an old injury happened at work to receive benefits
Faking injuries at work to fraudulently submit a workers comp claim
Staying at home even after they’ve recovered from their injury to continue to collect workers compensation
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