Warning! Fraud Is Coming To a Web Site Near You

It is an oft-quoted lament that the slow-moving insurance industry traditionally has been behind the curve in utilizing technology to its advantage. In the long run, this may put insurers at a disadvantage against other competing institutions such as the banking and securities industries. In the short term, however, there is one category in which insurers are happy to report that they are lagging behind their financial services brethren: Internet fraud. While most securities and banking firms have a substantial online presence, many are reeling from rampant fraud via hacking and identity theft at levels virtually unknown in the insurance arena. But if adjusters think this perennial technology gap means that the claims industry is somehow immune from Internet-based fraud schemes, they may pay a dear price in the next few years.