Maximilian Edelbacher

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Speaker: Maximilian Edelbacher
Studied Law at the Vienna University
1972 – 2006 employee of Police,
Chief of Major Crime Bureau
1995 - 2012 Lecturer at 3 Universities
Since 2007: Special Investigator of AVUS
Since 2008: Security Advisor to ACUNS
Since 2010: Board member of the Austrian
Association of Criminal Investigators
Since 2011: UN Representative of IPES
Author of several books, specific articles
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1. Global Frame Conditions of Fraud against Insurance
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2. Fraud against Insurance is OC and Economic Crime
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3. International Dimensions of Fraud against Insurance
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4. Insurance Fraudster`s profile
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5. Challenges of this Century
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6. Are we prepared to react?
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It is estimated that about 80% of Fraud against Insurance happens just in local areas.
World Economics are structured internationally, therefore risks and vulnerability by OC are high
OC activities will become more and more transnational using economic principles.
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In the book: „Crime against
Insurances“, 2008, Univ. Prof.
Michael Theil and I argued that this kind of Crime is Organized
Crime and Economic Crime.
Just now Criminals act rather locally but show a tendency to act more and more globally.
Examples prove this thesis.
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Organized– & Economic Crime
Organized Criminals of the fifth generation of Mafia use all fields of crime to maximize their income
(Statement of Arije Antinori, Univ.
Prof. at the Sapienzia University in
Rome).
Therefore OC, White Collar Crime,
Financial Crime, Money Laundering are main income sources.
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Fields of Organized Crimes:
Trafficking of Human Beings
Trafficking of Drugs
Trafficking of Weapons
Trafficking of Stolen Vehicles
International Financial Fraud
International Counterfeiting
Corruption and Bribery
Financing Terrorism
Money Laundering
Economic Crime like Insurance Fraud
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www.mafia.ru

3. International Dimension of
Fraud against Insurance
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As borders are less controlled criminals use this opportunity much more efficiently for their purpose.
Governments and law enforcement organizations are to weak to protect societies against transnational crime.
Trafficking of stolen vehicles, stolen art-pieces and insurance fraud are increasing each year.
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Examples of Insurance Fraud:
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In Austria and Germany numbers of theft of cars, burglaries are decreasing, but insurance claims are increasing.
Boat-Casco-fraudulant Claims increased by more than 20%.
Fraudulant Liability Insurance claims increase generally by 20%.
Fraudulant car insurance claims increased by more than 100%.
The following example was reported as an accident - not as murder case!
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A practical analysis of insurance crime cases covered up between
1978 and 2012 in Austria, Vienna, showed that the majority of insurance crime offenders are amateurs:
3 % are Terrorists or OC-Criminals
12 % are more or less professionals
85 % are amateurs
It seems to be a realistic outcome compared to other experiences.
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Nobody is hit personally
You pay all the time and do not get anything back
A claim was not settled
It is so easy to cheat
Because there are economic problems
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Because a friend advised me to do so
To take revanch
Because I wanted to help a friend
Because everybody does it
Because insurance companies treat you impersonally
Fraud is business
Why insurance fraud is committed
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5. Challenges of the 21st Century
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White Collar Crime and Organized Crime is very often sophisticated, criminals are highly mobile, acting transnational, professional, are advised by lawyers or other experts, use modern technologies and are focused on economic success and driven by greed.
Use of Internet leads to
Cyber Crime.
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Main Security Issues are:
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Burglary into flats and homes
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Theft of Cars and parts of cars
Theft & Fraud in Transport-Business
Economic- and Financial Crimes
Financing Terrorism
Money Laundering
Management of Catastrophes
Cybercrime, Internet-Crime
Piracy, High-Jacking, Arson
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6. Are we prepared to react?
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International Meetings of Law enforcement agencies analyze that we are not really prepared for these new challenges.
Especially education and training methods are not efficient enough to prepare officers to fight new modi operandi of criminals.
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Lack of knowledge of culture and language are mentioned too.
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What can be done?
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Law enforcement agencies have to educate and train their officers to counter white collar crime and insurance fraud.
Example: In 2012 Austrian police officers learned by a Bulgarian hacker how expensive cars, like Audi, BMW,
Lexus could be stolen in less than two minutes, just by hacking the onboard computer.
Activities of Police and Insurance
Companies have to be coordinated.
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Insurance Companies
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It has to be known that repression and prevention measures against insurance fraud is a professional corner stone of claims management of insurance companies.
The top management has to be convinced that counter-strategies are not only necessary, but a must!
It is a fact that a high number of fraudulent claims stay undetected!
Complexity and Intensity of fraud increases.
What about the protection of personal data and privacy?
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Conclusion
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Costs of undetected Insurance Fraud are high and estimated to increase.
There are concrete links between
OC, WCC and Insurance Fraud.
Cooperation between Insurance
Companies, Insurance Fraud Bureaus and Law Enforcement Agencies are important.
Use of “Best Practices” has to be the goal of all repression- prevention measures.
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- Questions?
- Discussion?

Right on your side
Thank you for your attention
Mag. Maximilian Edelbacher edelmax@aon.at