Fraud Prevention

Cyber-attacks worry insurance industry

Fraud has always been an issue of concern for the insurance industry, as it is one of the most sought-after targets for organized crime.

In the words of Arturo López Linares, director of claims at Axa Spain, «digital fraud is the future we are going to be in and we are not prepared for it», as reported by the portal 65ymas in one of its articles.

He also points out that «it is the great concern of the insurance industry», in addition to the fact that «companies need to accelerate their capabilities to detect digital fraud, they need more technology and more investment».

How to fight against this fraud? Investments.

During the pandemic alone, cyber-attacks increased by 600%. With the prospect of work and e-commerce continuing to grow, data protection is one of the biggest challenges for companies in 2021.

With the new invention of 5G, it is more than likely that it will bring with it potential vulnerabilities, for which we must keep a close eye.

It is important to allocate resources to cybersecurity and not limit ourselves. The vice-president of the National Securities Market Commission (CNMV), Montserrat Martínez, stated that 23% of large companies suffered a security incident during 2020. Martínez warns that people are becoming increasingly accustomed to news of attacks to access data or carry out some kind of fraud.

Insurance companies and digital fraud

Insurance companies have been confronted with three types of fraud: occasional, premeditated and organized.

The first refers to when a person takes advantage of a real loss to fatten the indemnity or settlements.

In the second, premeditated, the damage may be real or fictitious, but it has clearly been planned in advance.

Finally, organized fraud is one of the most dangerous frauds, which are committed by organized criminal gangs. Insurers are clear that they will soon have to add digital fraud.

Criminals already rely on technologies, i.e. they carry out a digital crime. They do this by forging digital documents such as invoices or identity documents, manipulating claims management websites.

While insurers are just beginning to explore the digital medium, they must be prepared for the impending wave of fraud.

At LISA we have the most advanced technology to digitize and protect the insurance industry from the most malicious frauds.

How prepared are you to combat this type of crime? Count on our support 🙂

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