Having been a private investigator in the Workers’ Compensation (WC) industry for almost 15 years, IMHO, I come across quite a bit of industry jargon – an alphabet soup of acronyms only trumped by the federal government.
If you’re new to the
|AOE/COE||Arising Out Of Employment/In the Course Of Employment|
|AWW||Average Weekly Wage|
|BWC||Bureau of Workers’ Compensation|
|DOL/DOI/DOA||Date of Loss/Date of Injury/Date of Accident|
|EMR/MOD RATE||Experience Modification Rate/Experience rate used in determining WC premiums|
|EOR||Employer of Record|
|FROI||First Report of Injury|
|IME||Independent Medical Exam|
|MCO||Managed Care Organization|
|MDOS||Modified Duty Onsite|
|Med Only||Medical Claim Only, No Lost Work Time|
|MEDCO 14||Ohio’s specific Physician’s Report of Workability|
|MMI||Maximum Medical Improvement|
|NCM||Nurse Case Manager|
|POR||Physician of Record|
|PTD||Permanent Total Disability|
|RTW||Return To Work|
|SIU||Special Investigations Unit|
|STD||Short Term Disability|
|TPA||Third Party Administrator|
|TTD||Temporary Total Disability|
|Voc/Voc Rehab||Vocation Rehabilitation (training to do another job)|
A new workers’ compensation claim hits your inbox, littered with red flags. But your spidey- sense kicks in. Why?
Well, several warning signs pop up; the claimant was injured on a Friday before a holiday weekend, they’ve already booked appointments with a chiropractor, and nobody witnessed the injury.
You ask yourself, “Is it fraud?!?”
Though not every claim you see is fraudulent, this one appears to be. But, what now?
You know that proving fraud could save your client tons of money in insurance premiums.
What if you had a comprehensive list of red flags to check against your suspicions? A list that was compiled by a fraud investigator with the help of claims professionals like you?…
..well, we did it.
We asked a dozen claims adjusters, examiners, insurance professionals, attorneys, and others for their workers’ compensation claim advice and compiled the results into a comprehensive list.
Here is the list of red flags (67 total) they provided:
The Timeliness of the Injury Report
- The injury occurred immediately before a holiday or a long weekend (many “injuries” occur on Fridays). – The most common red flag is the injury without a timely report of injury – Lisa Fike, Staff Attorney
- The claimant was injured after a holiday or a long weekend (this repeatedly occurs if the claimant is ineligible for holiday or paid-time-off).
- The claim was filed prior to a planned vacation allowing the claimant to collect disability during their trips.
- The claimant reports the accident days, weeks, months, or years after it occurred.
- The claim is filed after the claimant becomes aware of their imminent termination.
- The claimant is injured shortly after initial hiring (this is especially true after the initial probationary period for full-time hires).
- The claimant recently purchased personal disability insurance (a.k.a. gap coverage).
- The claimant hires an attorney immediately after filing a claim.
- The claimant instantly asks for a settlement.– Amy Rodallega, Claims Representative, Nationwide Insurance
- There were no witnesses to the accident.
- The accident occurred on the employer’s premises but out of view of security cameras.
- The claimant was helping another employee despite being asked not to do so (not their department or job duties) by management.
- The claimant’s version of the accident is inconsistent – there are multiple variations of the story.
- The claimant experiences a psychological injury, which is hard to substantiate.
- The claimant experiences a back injury, which is hard to substantiate.
- The claimant engages in physical activities inconsistent with the limitations they claim to have due to their injury.
- The claimant has a pre-existing injury.
- A hospital canvass determines that the claimant has been treated elsewhere for the same condition and/or an Insurance Service Office (ISO) check reveals that the claimant had prior injuries to the same body part. – Lori Terry, Claims Examiner, Careworks Consultants Inc.
- The claimant has a history of subjective injuries, psychological, mental pain, undisclosed pain, or general pain.
- The claimant seeks to open or start a new claim based on a flow-through injury (an injury developing in a body part not originally alleged) or from the result of an old injury. – Jean McEntarfer, Human Resources Manager, Teleperformance USA
- The claimant is never available to answer calls.
- The claimant has limited availability for exams and/or appointments.
- The claimant has a preference for receiving emails from claim representatives rather than phone calls.
- The claimant’s voicemail box is always full.
- The claimant screens or avoids calls.
- The claimant frequently changes appointments or does not show for appointments to avoid field case manager or nurse case manager. – Debbie Lantman, Manager – Workers’ Compensation, Formica Corporation
Circumstances Around the Job
- The claimant files a claim for job security – the claimant knows the employer will not terminate the claimant while on disability.
- The claimant performs seasonal work that will end soon.
- The claimant is approaching retirement and files a claim.
- The claimant has absenteeism problems.– “They ‘earn and burn’ their time by attempting to get off work when they’re out of PTO or off-days.” – Brenda Scalf, Client Services Manager, Sheakley
- The claimant has frequently used the Family Medical Leave Act (FMLA).
- The injury occurred as a result of the claimant’s side job.
- The claimant has a personal vendetta against management or fellow employees.
- The claim occurred just prior to or after a strike.
- The claimant shows up in pictures or in person with indications of having worked another job:
- they have calluses on their hands, or
- grease under their fingers.
- The physician of record (POR) does not mention checking the state pharmacy website for the claimant’s narcotic prescriptions.
- In states where it’s permissible to do so, the claimant refuses to seek medical treatment or physical therapy.
- Multiple workers’ compensation claimants seek out the same physician. -“It’s suspicious when employees of the same organization magically go to the same doctor when they are injured.” – Kelly Flynn Reimer, Claims Manager
- The claimant refuses to go to vocational rehabilitation.
- The claimant refuses to go to an independent medical exam (IME).
- The subject explores “doctor shopping,” where they seek out physicians who substantiate their injury claims. –“I would say that anyone who gets released from the physician, or is told they can’t have any more narcotics/meds, who then immediately starts ‘doctor shopping’ is a big red flag.” – Jill Thomas, Director of Claims, V&A Risk Services, LLC
- The claimant seeks narcotics and once their prescription runs out, they shop for another doctor who will fill that prescription.
- After a doctor’s appointment, the claimant cannot describe the types of medical services that were performed on him or her.
- The claimant has a doctor that is a great distance from their residence for no reason at all.
- The claimant tells the doctor what kind of treatment they need.
- The claimant tells the doctor their employer has no light-duty work.
- The claimant immediately seeks treatment with a doctor or chiropractor that is known to automatically take patients off work. “Some doctors are on the suspicious provider list if claimants go to them for initial treatment. Suspicions increase when employees of the same organization frequent the same physicians” – Anonymous Claims Professional
- The claimant sells their prescriptions to others or seeks out various medical providers to obtain multiple prescriptions.
- The injured worker immediately schedules a meeting with a chiropractor. -“Even if I’m not familiar with that chiropractor, that’s always a red flag to me because it means the injured worker (IW) is familiar with chiropractors” – Jackie Spring, Self-Insured Manager, Alternative Risk Management
- Social media pictures and profile information indicate that the claimant is active and moving normally against their restrictions. – Lisa Ball, SIU, Allstate Insurance
- The claimant has a history of filing Worker’s Compensation claims in the past.– “I have seen people do this because most employers will not get rid of someone that has filed a workers’ comp claim.” – Debra Goetz, Spooner Inc.
- Employees that are friends or associates with the claimant observe the claimant conducting activities that are in contradiction to their limitations.
- The injury occurred during a side sporting activity.
- The claimant is a nomad; they live in multiple places, and/or drive around from job to job.
- The claimant uses a PO Box as their mailing address, rather than an actual address, and/or refuses to provide a physical address.
- The claimant lives in an economically depressed area.
- The claimant has a history of bad credit, monetary problems, or is always in debt.
- Several of the claimant’s relatives and friends have similar Worker’s Compensation claims. This is what some investigators call ‘fraud school,’ where fraud/abuse methods are passed from relative to relative.
- When taking a claimant’s statement, the claimant feels inclined to provide information on their personal character. For example, “I’m a good person, and I am not looking to scam the system or get something I don’t deserve.’ I can tell you that 9 times out of 10 when someone makes a comment like that to me they end up trying to scam the system!” – Adriane R. Thompson, SCLA, Senior Resolution Manager, Gallagher Bassett
- Claims representatives suspect the claimant’s character or personality traits determine the claimant is engaged in workers’ compensation fraud or abuse (The claimant’s demeanor is very calm or savvy).
Other Red Flags
- The claimant does not have medical insurance.
- The claimant opts out of employer-provided health insurance and soon after files a workers’ compensation claim.
- The claimant has a high-deductible insurance meaning they’ll pay a lot in out of pocket expenses.
- The employee will file a claim before going out for a non-industrial health reason (i.e. major surgery) & their PTO time won’t cover the entire period of time they’re off.
- Employees who plan to visit their out-of-the-country/town family members for extended periods of time will file a temporary total disability (TTD) claim, allowing them to collect a Workers’ Compensation check if their doctor writes them off on a Physician’s Report of Work Ability. “For example, someone from a foreign country who is planning to visit their family for 1-2 months will file a claim the week just before they leave thinking they will be paid TTD the entire time they are gone.” – Holly Miller, The Ohio Manufacturer’s Association
- The claimant has shown an overall pattern of behavior that indicates fraud.
- The claimant had a recent auto accident or has had multiple auto accidents where they were injured.
When that next claim with red flags hits your inbox, do your clients a favor – check it against the list above. If it saves them money, they’ll be happy you did.
Did we leave out any red flags? Let us know in the comments below or email Gravitas Investigations at firstname.lastname@example.org with your suggestion.
If you’d like to discuss a plan to combat fraud, Call Us Now to speak directly with an investigator.
This interview was originally posted in Pursuit Magazine.
You are transported back in time as you walk along Via dei Calzaiuoli, Florence, Italy’s main pedestrian street. It is a wide, cobblestoned walkway stretching several hundred yards from the historic, domed Florence Cathedral, or simply “Duomo,” to the famous Palazzo Vecchio. Historical figures like Michelangelo, Dante, and Leonardo da Vinci called this place home. And so does Alberto Paoletti, private investigator (PI).
In Florence for my wife’s work assignment, continuing to attend graduate school, and operating my own private investigations business remotely, I looked up local private investigators online in hopes of connecting with one. There, I found Alberto.
So I threw on my suit and tie, and after a 20-minute walk from my apartment, mustered up the courage to knock on his office door. The goal was to simply drop off my business card, but I got much more than I bargained for. Alberto invited me into his office, and we sat down for an interview and talked shop for almost an hour. He turned out to be an incredibly nice and accommodating man.
A few days later, Alberto graciously took time out of his busy day for an interview. Here is an excerpt from that interview (special thanks to Google Translate for helping Alberto and me bridge the gap from Italian to English):
ADAM: Thanks for sitting down for an interview. Let our readers get to know you. Where are you from?
ALBERTO: I was born and raised in Florence, Italy. I hope to die here someday as well (laughing)!
ADAM: Where did you go to school?
ALBERTO: I went to a very good technical school in Florence, Duca d’Aosta Institute, and studied business. I have also taken master classes in crime and business, each lasting 2-3 months.
ADAM: How old are you?
ALBERTO: Too old (smiling). I was born in 1945.
ADAM: How long have you been a private investigator?
ALBERTO: I’ve been a private investigator since 1969. I started my own company when I was 25 years old.
ADAM: How did your career get started?
(Alberto points to a portrait of a uniformed man on his office’s back wall.) My uncle was Carabinieri or, Italy’s military police. He was counter-espionage in World War II and received his military pension very young. Using that pension, he was able to start his own firm investigating commercial businesses for bank clients. An economic boom in Italy helped my uncle’s business grow. In ten years, my uncle had enough business to buy three apartments!
This was a very big deal, as all of my uncle’s work was word-of-mouth. There were no license requirements back then, and he had no office. I helped my uncle during summers when I was just 15 years old (laughing). I would do surveillance on a Vespa even back then (revving mock handlebars), following behind my uncle’s car on cases. But that was the start of my career.
ADAM: I’m picturing you in a Fiat 500. Did you ever use one to do surveillance?
ALBERTO: Oh, yes! I would [shade] people in a Fiat 500, then later an 800, and eventually a Fiat 1000!
ADAM: What made you want to be a private investigator?
ALBERTO: At first, I didn’t really want to be a private detective, nor did I think I would end up as one. After I graduated from school, I wanted to be an employee at a bank or in a public office. But I found out quickly that I hated my bank job and the idea of being an employee.
So I traveled to Germany at 19 years old. I lived in Bonn for one year, learned about the import/export business, and took up the German language. After I came back to Florence, one day I was selling items in the street with my friends. And (snapping his fingers) the light bulb just went off, and I understood that doing private investigations was ideal for me. I could be independent, I could be free, and I could create something. I was willing to work at any hour – not just 10-6, as most Italians do.
So, I worked for two years as an employee at another firm to gain experience. Once I finished my two years, I asked for the company license, received it, and in one month I was able to open an office in the center of Florence. This was during another economic boom in Italy.
“I understood that doing private investigations was ideal for me. I could be independent, I could be free”
ADAM: How did learning German and English help you as an investigator and business owner?
ALBERTO: Speaking many languages helps to build relationships. We work so often with other countries in the European Union, not just with Germans. It is important to have many connections, and speaking their language helps support that.
The Business End
ADAM: Who was your first client?
ALBERTO: My first client was Mercantile Bank, which went out of business a while ago. I did commercial inquiries for them. After one month, I had my first employee, a secretary. Her salary was about €30 (approximately $34 U.S. dollars) per month back then! I then bought my first typewriter and telephone, which are still collecting dust in my office today. I learned how to type on an old Olivetti typewriter.
ADAM: Where was your first office located?
ALBERTO: My first office was just north of the Duomo, and my second office is here on Via dei Calzaiuoli. It’s amazing to think I’ve walked past the Duomo every morning on the way to work for the last 50 years!
ADAM: What does your typical day look like?
ALBERTO: I am now more of a broker of investigations. I have employees who do the dirty work for me, and I am the … table worker?
ADAM: “Desk worker?”
ALBERTO: Yes. I am the desk worker. Of course, I used to do all of the work when I was younger, but now my young investigators do the fieldwork. I am always on the phone speaking with investigators and clients. I also manage the schedule because I feel it is very important. (note: Indeed, during our interview, Alberto leaves multiple times to take calls.)
ADAM: How many employees do you have?
ALBERTO: I have about 12 employees who do commercial work for me. For investigations, I have two full-time investigators, 2-3 part-time employees, and one or two interns.
ADAM: What was your favorite case?
ALBERTO: There are so many. We are currently investigating a tragic criminal case where a little boy fell and died. We have to determine whether or not the fall was intentional or accidental. It was very sad. Solving this case is not my favorite, but helping the family will bring us great fulfillment.
Another was a matrimonial (infidelity) case. A man’s wife wanted me to follow her husband. She suspected he was cheating on her. So, I sent my detective on the surveillance to follow the husband. After two days, my detective called me and said, “The husband is coming to the office to see you.” I said, “Did you get [burned]?!” The detective said, “Absolutely not!”
I was confused, but later that day the man showed up at my office. I sat down with him and asked what he wanted. He asked, “Can you follow my wife? I think she is cheating on me (laughing).” Naturally, I could not help this man and told him so.
We also had an international case. Our client was a very rich and important man. He was the CEO of a public company, and he had given some shares of his company and a personal company bank account to his wife. Therefore, she was now a shareholder and an employee of the company. However, the man found out that his wife had fallen in love with another person, the owner of a club in the Maldives, and had run off with this new man.
The client wanted us to fly to the Maldives and photograph his wife with the club-owner. I could not go, so I sent a rookie detective there to film them. The detective stayed on the islands for over a week and took many photos of the wife and the new man. With the evidence, we were able to stop the money and shares of the company from going to the wife. But my investigator believed that working in paradise was normal (laughing)! He thought the job was like this every day!
ADAM: What is your favorite aspect of the work?
ALBERTO: The human relationship with the client. I must be a psychologist and not just an investigator. Also, if I’m able to solve the case, I have a rush of satisfaction. There are many negatives of this line of work, but one of the best parts is that I get to work for those who have been scammed, the victims of injustice. We are different than [defense] lawyers in that way; we don’t defend the bad or criminals. We work for the victims. As a result, I feel I have a moral success.
ADAM: What is the least favorite part of your job?
ALBERTO: Stress from clients who call every moment on the phone and want to know what’s going on. They want always updates! So, we tell our clients not to call us, we will call them. Also, it is tough to separate emotion and anxiety from a case. We are passionate about solving the case, but we must remain strong. So, I don’t get too close to the case.
ADAM: What is your most common type of case? What type of work do you specialize in?
ALBERTO: We track down people who haven’t paid their bills. We do insurance fraud cases. We do copyright infringement cases, where people illegally make designer brands such as Prada, Gucci, and Dolce & Gabbana. We also do matrimonial (infidelity) cases. Our clients are mostly husbands looking to stop alimony payments or providing housing to their ex-wives. We also do child custody and divorce cases.
ADAM: What part of your career are you most proud of?
ALBERTO: When I was young, I was very timid. This job has helped me to open up, allowing my personality to grow. I also understand the negative and positive characteristics of people and the way people live their lives.
“When I was young, I was very timid. This job has helped me to open up, allowing my personality to grow.”
I am proud of the positions and appointments I have held in my private detective associations. Holding these positions has increased my love of my career, increased my knowledge and technical expertise. I really enjoy the relationships I have had with other members. It gives me self-worth.
ADAM: When you are thinking about investigating someone, what is the first thing that you should do?
ALBERTO: Speak with the client for a very long time. The client is the most important source of information. Recently, I had an interview with a client for two hours. My job was to be empathetic towards my client’s problem. His problem must be ours, but only in a small way, not too much.
ADAM: Is there anything you should not do before an investigation?
ALBERTO: Check for the crazy ones. If I find out that the person I am talking to is crazy, I tell them to go to the police instead. Two others: Watch out for clients that think the law is against them, and watch out for clients that ask you to do illegal things. I get asked to do illegal things all the time, but I could lose my license, so I refuse.
The Italian Job
ADAM: How do you get an investigator’s license in Italy?
ALBERTO: Before 2010, every city had a representative from the Minister of Interior. This representative could give out licenses based upon his discretion. Quite unfair. But after 2010, it all changed. FEDERPOL is Italy’s largest private investigator’s association (of which Alberto was president). We implemented license requirements.
First, applicants must have a three-year university degree in one of these areas: law, economics, crime, or journalism. Second, applicants must also have practiced investigations as an employee of a company for three years. Lastly, applicants must have a clean background check. No past criminal records.
ADAM: What is legal and open to investigators in Italy? And what is not open?
ALBERTO: In Italy, the data protection act is very strong. I am on the commission of FEDERPOL, the Italian Association of Private Detectives. Italy is the most regulated in all of Europe when it comes to privacy. You cannot access public information, like criminal records. Both the police and minister of the interior control what information private detectives can access.
In order to get criminal records, you must request it from an attorney. Police and the minister of the interior do integrity checks on our cases; they come to our office and note the name of each of our cases and the invoice amount. After documenting our cases, they stamp each page in our book. Very rigorous.
ADAM: Do you have a relationship with local police? Is it good or uneasy?
ALBERTO: There is very little relationship with the police. It is very tough. We are in competition, but it is a legal issue. If we are working the same case, for example, a criminal case, we are completely separated. There is no team. We must also develop leads without the help of the police. Police detectives have this benefit, but we do not. They have connections with other police, but we don’t. However, we help during counterfeiting cases. We do the dirty work, but they get the credit in the newspapers!
ADAM: In what other countries can you do investigations?
ALBERTO: Well, Adam, since you are now our United States connection, the U.S. (laughing)! We have used you to find U.S. criminal records for one of our clients here in Florence. We have done work in France, Germany, and at times a blend of many countries together. Due diligence cases take our work to many different countries.
ADAM: What books have you authored?
ALBERTO: One book is called The Private Investigations Operational Guide, which came out three years ago. My editor wants an updated version because we sold several thousand copies, so we may come out with another edition this year.
ADAM: What is the difference between actual Florence investigations and how investigations are portrayed in Hollywood?
ALBERTO: The reality is that we have a double life, a schizophrenic life. The public knows what we do in film, but they don’t know the reality. They think we do illegal detective work, rather than simply gathering public information. My clients think I bug people, but that is pretty much a fictional part of the job. People think we only work infidelity cases or matrimonial cases. The clients only have this view.
ADAM: One last question: I’m a huge movie fan. You told me that a movie was filmed here in Florence starring Tom Hanks. What movie was it and what was that like?
ALBERTO: Oh yes! We did have Inferno film here last year, and I saw the film crews in the nearby piazzas (town squares). Many movies have been filmed here. Hannibal was filmed here about ten years ago. And many more.
ADAM: I’ll be sure to watch them! Grazie Mille for your time, Alberto.
ALBERTO: Prego. Prego! Molto bene, Adam! It was wonderful for me as well.
About the author (and the interviewee):
Alberto Paoletti is a private investigator and owner of Informark S.R.L, a private detective firm based in Florence, Italy. This interview took place at Informark’s office in Florence.
So you’ve collected some great evidence from your latest case and now you have to testify as a witness. But first you’ll be summoned to a deposition.
What’s a deposition? A deposition is your sworn, out-of-court testimony that takes place during the fact-finding point in the case, which is called “discovery.” In a deposition, opposing counsel will ask you questions about your evidence and your role in the case, and then your recorded and transcribed answers will become official court record.
Depositions typically take place in a law office, but can sometimes occur over the phone or via video conference. You’ll be accompanied by your client’s legal team, opposing counsel, a court reporter, and many times a videographer or judge.
The difficulty is that the process can take several nerve-wracking hours, and one vague answer might derail the case. So, what can you do?
Here are 10 pointers an investigator can use to give an effective deposition:
Have you ever been asked what you do for a living? When people ask me, I tell them I’m a private investigator (PI).
Kind of interesting, right? You don’t get the opportunity to meet private investigators every day, let alone talk to them about what they do.
Inevitably, the next question asked is:
“Who hires you?”
Aside from “educational” shows about private investigators (like Cheaters), I’m surprised at the lack of information available. One look at web search results and it seems all we PIs do are infidelity or domestic cases. Case in point:
There are a lot of false assumptions about the identity of both private investigators and our clients. We all don’t look like this guy:
In truth, private investigators offer a mix of services that are useful to a wide array of customers.
Here are 7 types of people that commonly use our services:
Human Resource (HR) Professionals
As an HR pro, you strive to bring in quality employees to fill open positions in your company. But how can you be sure new employees will be a great fit?
I’m glad you asked.
By hiring a private investigator to conduct a background check.
Running a background check before you hire an employee (a pre-employment screening) helps to develop and evaluate a candidate’s profile.
A good screening will help you answer several questions, such as:
- Does the candidate have a criminal record? Avoiding workplace violence is crucial and is one of the first items a pre-employment screen uncovers. According to the Bureau of Labor Statistics, of the 4,679 fatal workplace injuries that occurred in the United States in 2014, 403 (9%) were workplace homicides. (You’ll also want to make sure your investigator is compliant with pre-employment regulations and laws – see Ban the Box for more info.)
- Do their resumes check out? PIs screen candidates to make sure all the details of a resume are true. Lying on a resume is illegal in some states, not to mention it’s ethically wrong and can lead to serious harm to a company’s reputation if it becomes public.
- Did they attend the college(s) they claim they did? The number one lie on resumes comes in the form of “education padding,” where applicants embellish or fudge their education information. PIs can track down college records, years attended, and degrees that a candidate received.
- Are their past employment records accurate? PIs specialize in tracking down past employers. Many times, PIs can uncover false employment claims or omission of previous employment on a resume.
- Do they have good credit? PIs can run credit reports to find credit ratings that leave much to be desired. Again, it’s important to find a PI who understands and complies with the consumer reporting laws. (See Using Consumer Reports: What Employers Need to Know and Fair Credit Reporting Act for more info.)
- Is he/she a sex offender? Sexual harassment costs companies bundles of money. In 2011, over $52 million was doled out to victims of sexual harassment in the workplace. That number doesn’t even count the number of women (and men) who don’t report the act altogether, which could be as high as 1 in 3. PIs can access nationwide data on sexual offenders so you can avoid this problem altogether.
Preventing workplace injuries is an integral part of the job description for occupational, environmental, and industrial safety professionals.
The ability to administer the workers’ compensation program is lumped into many of those job descriptions. On top of that, it’s beneficial to a safety manager to be informed about how to save the company money. One way to do this is by eliminating fraudulent claims.
How do you work towards eliminating fraud?
You guessed it: hire a private investigator.
Private investigators can conduct surveillance on fraudulent workers’ compensation claimants. Obtaining compromising video, along with a detailed report of a fraudulent claimant’s activities, can magically make claims go away. Safety professionals that partner with a competent and well-versed surveillance expert can help deliver this result.
Insurance Claims Adjusters
Unfortunately, insurance fraud is a booming business in today’s world. Automobile accidents, arson, and healthcare fraud total approximately $40 – $80 billion annually,  costing the average U.S. family anywhere from $400-$700 per year.
To defeat insurance fraud, insurance companies hire private investigators. PIs can perform automobile accident reconstructions, interview claimants and witnesses, and gather law enforcement records to determine who is at fault and who might be cheating the system.
The end result equals money saved and risk avoided.
Lawyers are another type of private investigator client.
Private investigators can help lawyers dig into opposing parties’ backgrounds, interview potential witnesses, and aid in the litigation process.
Also, private investigators serve subpoenas and specialize in tracking down witnesses and plaintiffs who may not want to be found. Hiring a PI to do the legwork is a cost that’s worth the investment.
Caregiver or Homemaker
What if you need a babysitter to watch your child, but the next-door neighbor isn’t available?
Conducting a background check on a nanny, babysitter, or caregiver gives you peace of mind.
You’ll want to know if the person looking after your son or daughter is responsible enough to babysit your child. Private investigators can locate past and current criminal records, sexual offenses, and verify your babysitter’s identity.
Business owners want to make sure their business interests are protected. They also want to determine if they’re getting into business with the right partners.
Hiring a private investigator to conduct a business background check on a client’s business partner, a.k.a a due diligence search helps to evaluate the quality of a business partnership.
You’ll want to know what kind of credit both the candidate and the business have, a list of their business assets, the business representative, any negative media associated with the business, and any other past issues.
Businesses also use private investigators to conduct security and integrity audits.
For example, a PI can do anything from investigating the security of a building or inspecting the quality of service at a restaurant. Private investigators can follow salespeople to learn if they’re regularly attending their sales meetings, stake out bars and clubs to make sure the staff isn’t stealing from the register, and attempt to (legally) “break into” data storage companies to test their safeguards.
Landlord (Property Owner)
Renting your property to bad tenants is a problem. Hiring an investigator helps mitigate the risk of renting to untrustworthy renters.
That’s your property that you’re allowing someone else to live in, so you have a vested interest in making sure it’s not torn to pieces once the lease expires. Vetting your tenants upfront can help to ensure you collect your rent check every month and alleviate property damage concerns.
Private investigators can help by conducting a background check on your potential tenant to find criminal records, prior evictions, civil suits, and bad credit. Searches like this will paint a picture of your potential tenant on the front end. From there, you can make the decision to rent to them or hold off and wait for a better candidate to come along.
What Other Ways Can Private Investigators Serve You?
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 “What you should know about workplace violence – CNN.com.” 2014. 12 Jan. 2016 <http://www.cnn.com/2014/09/27/us/workplace-violence-questions-answers/>
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