We thought Bank Losses Were Bad!

The National Insurance Crime Bureau reports that 20% of insurance claims are fraudulent, costing the insurance companies $100 billion a year!

Security experts last year agreed the losses to the financial industry due to fraud amounted to approximately $12 billion. Retail businesses claim they lose approximately $12 billion also in credit card and check fraud. The $24 billion combined falls far below the insurance companies figures.

Both the insurance industry and the financial industry, now that Y2K is under control, are concentrating on new technology to help detect and stop fraud.

Copyright © 1999 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 9, No. 11, 11/99