Modjoul Blog

Workers' Compensation Fraud: Know the Signs, Motives, and Consequences

By Michelle Hiscock on October 4, 2017 |


Work-related injuries cost U.S. companies $250 billion per year in lost productivity and medical expenses. When an employee is hurt on the job, the effects are far-reaching. As the injured employee faces physical and emotional stress resulting from their injury, companies are responsible for the direct and indirect costs associated with the work-related injury, such as workers’ compensation and lost productivity.

Most of the time, workers' compensation claims are honest and accurate. However, studies indicate that 1-2% or more of all workers’ compensation insurance claims are fraudulent. While this percentage may seem low, the National Insurance Crime Bureau (NICB) estimates workers' compensation insurance fraud amounts to $7.2 billion a year. With more than 94% of American businesses carrying workers' compensation insurance, fraudulent claims have a significant economic impact. 

What can businesses do to detect and prevent fraudulent workers' compensation claims?

Familiarize yourself with the types, motives, consequences, and warning signs of fraudulent claims in the infographic below. Then, consider how wearable technology can be integrated into your safety procedures to prevent workers' compensation fraud. Wearable technology, such as Modjoul's SmartBelt, can record workplace incidents in near real-time. By providing information such as environmental factors, time, location, and activity performed before, during, and after the claimed injury, companies will have the data they need to verify claims and prevent fraud.

See how Modjoul helps keep your employees safe and productive.

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