Workplace Injury Scams: What Employers in Singapore Need to Know

For any business owner, an employee suffering a work-related injury is a serious and stressful event. Singapore's Work Injury Compensation Act (WICA) provides a vital framework to ensure that injured employees receive the financial support they need. However, lurking beneath this essential safety net is a less-discussed issue: the potential for fraudulent claims.

While the vast majority of WICA claims are legitimate, employers must be aware of the signs of fraud and the proactive steps they can take to safeguard their business.

The Reality of Workplace Injury Claims in Singapore

Workplace accidents happen, and the system is designed to provide quick and fair compensation. But as the number of claims grows, so too does the risk of fraudulent activity. Workplace injury scams can range from subtle exaggeration of a legitimate injury to outright fabrication. These dishonest claims not only drive up insurance premiums for all businesses but also put a financial and legal strain on the affected company.

Common Types of WICA Fraud

Understanding the types of fraud is the first step to preventing it. Fraudulent WICA claims often fall into one of these categories:

• Claiming a Non-Work Injury: An employee might get injured outside of work—for example, playing sports or during a home accident—and then claim the injury occurred on company premises to get compensation.
• Exaggerating the Injury: An employee with a legitimate minor injury may exaggerate its severity to extend medical leave, increase their compensation, or avoid returning to work. Private investigators have found cases where workers claim to be incapacitated but are seen engaging in activities that contradict their claims.
• Faking an Injury: In more extreme cases, an employee may fake an injury or a condition to illegally collect medical leave wages and a lump sum payout. Singapore’s Ministry of Manpower (MOM) has prosecuted cases of workers staging falls to make a claim.
• Collusion: This can involve employees colluding with third parties, such as clinics or lawyers, to facilitate fraudulent claims.

A Red Flag Checklist: What to Look For

Being vigilant is key to protecting your business. While no single red flag is proof of fraud, a combination of these factors warrants a closer look and further investigation:

• Inconsistent Accounts: The employee's account of the incident conflicts with witness statements or changes over time.
• Lack of Witnesses: The alleged injury happened with no witnesses present, which is suspicious in a busy workplace.
• Delayed Reporting: The employee waits to report the injury without a valid explanation.
• Suspicious Timing: The injury occurs on a Monday morning or just before a termination, layoff, or a holidayThe injury occurs just after an employee has been put on a performance improvement plan, just before a layoff is announced, or on the day they resign.
• Refusal to Cooperate: The employee is difficult to reach while on leave, refuses treatment, or objects to an independent medical examination.
• Conflicting Behavior: The employee's social media activity or other observable actions contradict the physical limitations they claim to have.
• Lack of Documentation: "The employee is unable or unwilling to provide the necessary medical reports or other documentation required for a legitimate claim."

Conclusion

While the risk of a fraudulent WICA claim is statistically low, its impact on a small or medium-sized enterprise can be significant. The most effective defense is not suspicion, but a robust and proactive framework. By fostering a culture of safety, maintaining meticulous documentation, and understanding the red flags, you can protect your business and ensure that the WICA system works as intended—supporting employees with legitimate injuries while deterring dishonest claims.

For a comprehensive guide on how to implement these preventative measures and build a strong, fraud-resistant framework, read our article: Safeguarding WICA: How Singapore Employers Can Mitigate Fraud Risks in Work Injury Claims.

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