Check warning survey

Effectiveness of warnings on benefit checks

In 2000, the Coalition Against Insurance Fraud conducted the following survey by mail to selected insurance companies writing workers compensation coverage in the United States. A total of 44 completed surveys were returned and tabulated as follows:

1) Do the states in which your company operates mandate either by law or regulation the placement of fraud warnings on a benefit check stating that acceptance of the check for benefits not entitled by the recipient is a crime and could lead to prosecution?

Yes (70%)
No (30%)

2) Has your company placed fraud warnings on checks independent of any state requirement?

Yes (45%)
No (55%)

3) Has your company ever determined the percentage of checks distributed with a warning that goes uncashed or returned by the recipients?

Yes (5%)
No (95%)

4) If yes, has your company also determined the percentage of checks distributed with no warning that goes uncashed or returned by the recipients?

Yes (0%)
No (100%)

5) Are you aware of any specific prosecutions of insurance fraud in which a check with a fraud warning was used as evidence to prove intent to defraud?

Yes (14%)
No (86%)

6) To what degree do you agree or disagree with the following statements:


Agree
Strongly

Agree No
Opinion
Disagree

Disagree
Strongly

Fraud warnings on benefit checks are a useful tool to deter fraud. 25% 60% 10% 5% 0%
Fraud warnings on benefit checks assist in prosecuting insurance fraud. 20% 70% 10% 0% 0%
Fraud warnings on benefit checks could intimidate legitimate claimants from cashing checks. 5% 10% 10% 50% 25%
Differing language requirements from state to state make compliance difficult and costly. 55% 25% 10% 5% 5%
Fraud warnings on benefit checks should be voluntary, not mandatory. 0% 33% 11% 39% 17%