Journal of Economic Crime Management 3(1).
ISSN/ISBN: Not available at this time. DOI: Not available at this time.
Abstract: ABSTRACT: The research described in this article demonstrates that a digital analysis method called Benfordís Law can be applied to first-party automobile insurance claim data to detect number irregularities, which can be used in uncovering fraudulent automobile claim activity. This work is important because it provides a unique method of automating the automobile claim fraud detection process at Utica National Insurance Group (UNIG). Striving for new and different ways to automate this process sets the stage for more efficient and effective fraud detection both reactively and proactively. The study shows that Benfordís Law can detect number irregularities within first-party automobile physical damage claim payments. With further research and development, Benfordís Law has the potential to become a widely used and respected tool to detect insurance claim fraud. However, additional work must be completed before it will be effective enough to deploy industry wide. Several valuable lessons were learned, and common obstacles recognized, in the process of this research. The project should serve as a ďroad mapĒ for future research in the field of digital analysis, and more specifically, Benfordís Law
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Reference Type: Journal Article
Subject Area(s): Economics