Fraud detection encompasses data-driven and procedural techniques to identify misrepresentation or illicit activity in applications, claims, payments, or commissions. Insurers use identity verification, device fingerprinting, database cross-checks, pattern analysis, and human review toflag anomalies. Effective detection protects consumers, stabilizes pricing, and preserves carrier solvency by reducing avoidable losses.

Agencies deploy identity checks, device fingerprinting, and cross-database validation to flag inconsistencies. Suspicious patterns trigger enhanced review before issue, lowering claim costs and stabilizing pricing.