Common Red Flags of Worker Compensation Fraud


It’s always tragic to find out that an employee has been hurt while they’re at work. Like any caring individual you want to make sure that your employee gets the best care possible and the time they need to heal. You don’t hesitate to let them use workers compensation until they can get back on their feet. You think they’re doing whatever they can to recover, but other employees claim that they saw them out living it up and barely acting injured.

A workplace accident is tragic, but a company being taken advantage of because of a phony worker’s compensation claim is illegal. You may feel powerless to protect yourself against fraudulent claims and lawsuits, but there are signals that show a person is being disingenuous. If you notice any of the following red flags when a worker makes a claim, you may want to prepare for an investigation.

Time of injury

The worker claims that the injury happened on a Monday, but something about their story seems off.  Sometimes people that make fraudulent worker’s comp claims end up hurting themselves over the weekend, but lie that it happened during work so that they can get more money.  Ask others to see if there were signs of a potential injury before they came into work.  While we’re on the topic of talking to other employees, another potential sign of worker’s comp fraud is…

Lack of witnesses

Your employee injured themselves during a work day when everyone was in, but somehow nobody managed to see what happened. Think about how many opportunities your employee has to be truly alone during a work day. A lack of witnesses should be very suspicious.

Repeat claims

Sometimes people just have a spell of bad luck and get hurt on the job. Other times it can seem suspicious when the employee seems to have an accident at every company they’ve been associated with.    It isn’t uncommon for people that make fraudulent worker’s comp claims to be repeat offenders. Our private investigators in NJ will research the employee’s history to see if it raises any red flags.


Has your employee been warned repeatedly about their work performance?  Do they know that a workplace injury could be a way to still earn money in case their job is in jeopardy?  Has your employee talked about how much they’d like to retire, but doesn’t do much to save?  Their injury could be a way for them to retire early.  Sometimes the simplest answer is the easiest, and sometimes the reason for their “tragic” injury could be right in plain sight.


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