All industries have been impacted by COVID-19 in some form or another, with a 5% increase in suspected risky transactions and 29% of consumers reporting that they have been targeted by digital fraud related to the pandemic.1

Compared to the 5% increase mentioned above, the insurance industry has seen -3% and is reporting that ghost broking is its top reported fraud type during COVID-19. Of course, insurance agencies are no strangers to fraud. The insurance industry has been undergoing a digital transformation for some time by offering more channels for policyholders to access their accounts, leading to a heightened customer experience as well as an increase in fraud. In fact, recent conservative calculations estimate that $80 billion is lost to insurance fraud per year — globally, and across all lines of insurance.2

Skilled fraudsters will look for workarounds to every fraud-fighting technique you try, but 65% of insurers say their current tactics to remove fraudsters can negatively impact good customers.3 During a global pandemic, this is an even greater challenge. The key to building trust with your policyholders can be found in a friction-right approach to securing their accounts — as in, one that protects their access to services across all channels (and includes enough friction to make them feel secure), but without so much friction that they are encouraged to leave you for a competitor offering a smoother digital experience.

How to avoid falling victim to criminal tactics

In our recently updated global insurance industry brief, we outline solutions to the many challenges and fraud types the insurance industry is facing, particularly during uncertain times like those we’re facing today. These include:

  • Using a combination of device reputation and precise identity verification to identify good customers from fraudsters, in order to prevent quote, application and/or policy fraud
  • Enabling authentication methods in the call center, especially since call center fraud has increased since the start of the COVID-19 pandemic
  • Combating account takeover (ATO) — which is on the rise — using device-based authentication
  • Implementing fraud prevention and authentication solutions that dynamically adjust based on risk, so that your good customers aren’t treated the same as fraudsters
  • Building authorization capabilities into your native app, making authorization a much simpler function to track and manage


To learn more about combating insurance fraud in today’s changing environment, read our updated global insurance industry brief.