A Tier 1 UK Motor Insurer was concerned about possible previously undetected fraud losses within the supply chain for claims. Fraudulent activity within the supply chain manifested itself in many ways, but one example was collusion between the driver, the car rental company and the garage. Together, they would submit inflated costs for repairs and replacement vehicles.
To discover this kind of fraud involved finding links between the parties, whether it was address proximity, business ownership associations or similar. This was a time-consuming exercise when done manually, but also an extremely difficult one as it meant searching across disparate data sources, compiling the data, and continually cross referencing to discover links. An unenviable task with a high chance of human error as deadlines have to be met.
As a starting point, Synalogik’s fraud and financial crime experts worked with the Tier 1 Insurer to define the key links between the parties that were likely to indicate fraud, and then set up the automated risk assessment workflows to search, filter and flag them.
Synalogik ran a Proof of Value (POV) on 200 claims. Scout® validated details on accidents, including repairer, vehicles, claimant names, address and telephone numbers, identifying fraudulent claims where links were found between multiple suppliers in the same claim.