Using Social Media to Check up on False Insurance Claims

May 4 - In the United States and in some European countries, it is fairly common for insurance companies to use social media to check up on insurance claims in order to see that no fraud is being committed.

While many South African insurance groups say that they don't use social media as a tool to check up on claims, some of them do - and often with interesting results.

The Chief Executive for iWyze, for example, said that his group has turned down an insurance claim after investigating Facebook to get to the bottom of a story.

After a woman claimed that her BMW Sedan was written off in an accident where she was driving, the insurance group did a Facebook search, and found that the woman's 21 year old son was bragging on his portfolio that he had been involved in an accident while driving under the influence, in his mother's new car.

"Needless to say, the insurance claim was declined on the basis that the client had not been truthful with iWyze by claiming she was the sole driver of the vehicle and that she had been driving it at the time of the accident," said the group.

Another company, Discovery Life, admitted to using social media to check out claims.

"We do make use of social media for investigations, but we are not in a position to divulge any details," said Marius Smit, the head of forensics with this group.

According to Siohhan McCarthy who heads group communications for Sanlam, while her company doesn't use Facebook to investigate claims, "clients should be aware that if the information they post on a social network site becomes public information, insurance and other companies have the right to use such information if it comes to their attention."

It should also be remembered that one of the terms and conditions of a Facebook account is agreeing to allow Facebook to share your information in the interest of following the law and preventing fraud.

As such, the group will disclose information to authorities if it feels that it will be in the best interest of the law.