Hypothetical Example of a Social Network Containing Fraud – Individual Insurance* $1.26 million value of claims 14 claims 8 accidents 5 new policies * For a detailed insight, read the Notes below the slides. Fraud Management, Confidential 1

2009 – Five new policies 5 new policies are obtained from 4 different insurers. At this point, there are some cell phone links between the policies Fraud Management, Confidential 2

2009 October – Accident 1 Accident 1 4 subjective injuries reported Claims made against 2 insurers Total value $395,000 Fraud Management, Confidential 3

2009 October – Accident 2 Accident 2 Occurs 3 days after accident 1 3 subjective injuries reported Claims made against 2 insurers Total value $40,000 Claim links together 3 of the initial 5 policies on network Fraud Management, Confidential 4

2010 January – Accident 3 Accident 3 Subjective injuries reported Claims made against 2 insurers Claim value $224,000 Two clinics link Accident 3 and Accident 2 A claimant and an address link Accident 3 with Accident 1 Now all 5 original policies are linked up on the network Fraud Management, Confidential 5

2010 July – Accident 4 Accident 4 2 known claims made against same insurer Value at $14,000 Accident 4 links to accident 1 via an address Other insurer’s data not available at this time Fraud Management, Confidential 6

2010 August – Accident 5 Accident 5 Claims made against 2 insurers Same clinic appears on first and 3rd party claim Value $410,000 Accident 5 links to Accident 4 and Accident 1 by claimants and addresses Fraud Management, Confidential 7

2010 August – Accident 6 Accident 6 Occurs 3 days after Accident 5 Links to the network via a claimant 1 known injury claimant Value $30,000 Fraud Management, Confidential 8

2011 December – Accident 7 Links to network via 2 existing claimants (on accident 1,2 and 5) 6 injuries reported Forms a ring Claims made against 2 insurers Value $125,000 Fraud Management, Confidential 9

2011 December – Accident 8 Accident 8 Occurs 10 days after accident 7 Claimant links to accident 1 Address links to accident 6 1 known injury claimant Value $23,000 Fraud Management, Confidential 10

A second ring developed in parallel 2 1 Fraud Management, Confidential 11

A third ring developed creating a large network 2 1 3 12