Fraud prevention focuses on controls that reduce the likelihood of misrepresentation before it occurs: clear disclosures, independent verification, training, segregation of duties, and secure technology. Prevention complements detection by improving intake quality, discouraging abuse, and supporting faster, cleaner underwriting and claims processes.

Firms train staff on red flags, standardize disclosures, and require e-sign identity verification.Clear procedures and secure systems deter abuse and improve placement quality.