ITIC Americas 2026 | The psychology and reality of travel insurance fraud

The ITIJ team have been reporting live from ITIC Americas in Mexico this week (June 2026) sharing the discussions that took place at the conference. Read all reports

Erick Soeth, CFE, Vice President of Investigative Services, Diligence International Group, LLC

Soeth began by saying that a balance of technological innovation and human expertise offers the best chance of identifying and stopping fraudulent claims from customers and providers.

He said the most common travel claim fraud is seen in travel claims overinflating the value of the loss, such as luggage containing items valued at US$300, but a claim indicates $3,500 worth of items. But, he said, this differs a bit from what they are typically asked to investigate, which can be medical claims involving exaggerated treatment and medication costs, and fabricated theft claims.

Soeth said a common denominator in most claims is opportunity, and that there is also a bit of rationalisation: ‘The insurers can afford it’ and ‘It can help offset trip expenses’.He said thattrends related to claims levels are in line with cost of living increases.

He said in the US alone, fraud costs an estimated $308.6 billion yearly (2022 study) which is  around $900 per person, per year. He added that in 2024, average trip costs were around $5,800 – a 25% increase from 2023,  and around a 40% increase from 2022. Average claim payouts in 2023 were $1,900 per claim (30% increase from 2022) and in 2024, $2,600 per claim (37% increase from 2023).

Soeth said that as the average legitimate claim levels rise, there is more headroom for fraudsters to inflate claims without triggering threshold-based red flags, and said that claims volume is also increasing, along with medical claims values. Soeth asked if this is sustainable for the future.

Soeth said there is a misconception that humans are working against machines to detect fraud – but the reality is that they work well together.

He said the best methods for investigating fraud is utilising software and tools to identify potential discrepancies, ask whether you have enough information to reach a decision, and consider the complex and large dollar claims (humans can gather details needed).

He concluded by telling the ITIC audience: “The best ways for insurers to disincentivise fraud are to strengthen front end verification requirements; leverage tech; use deterrence messaging; and investigate, investigate, investigate.”

Neal Levin, Partner, Rimon Law

Levin started by saying that certain humans are carrying between 1% and 4% of the neanderthal genome, “Hence, some of us are less human than others,” adding that recent discoveries reveal that neanderthal and humans co-existed as early as 30–50,000 years ago.

He went on to say: “In the beginning there was man … and then came Madoff,” (an American financial criminal and financier, best known for running the largest Ponzi scheme in history, which defrauded investors of approximately US$65 billion).

Levin stated that fraud levels are up because people feel entitled. They have paid for the premium, so they feel they are “owed”. Fraud is outpacing the amount of travel, Levin added. Synthetic identity is the biggest threat at the moment, as are Asian scam centres.

He went on to ask: what is it that makes someone possibly commit fraud? Traits may include:

• Glibness/superficial charm
• Grandiose sense of self-worth
• Need for stimulation/proneness to boredom
• Pathological lying
• Conning/manipulative
• Lack of remorse or guilt
• Parasitic lifestyle
• Poor behavioural controls
• Promiscuous sexual behaviour
• Impulsivity
• Irresponsibility
• Failure to accept responsibility for own actions
• Criminal versatility.

Who are the victims? Levin said they can be highly educated and highly successful. He said that  smartphones might in theory make it easy to target younger people, but it is in fact the elderly generation who lose the most money to fraud. The more you cross borders, he told ITIC attendees, the more likely you may be a victim.

He talked about the human condition as fraud control and said panic, urgency, authority, and sympathy, can be used. He added that algorithms detect patterns, and people detect stories.

Levin ended by warning: “Belief is the most common trait.” When we believe that something or someone will bring us fame and fortune, we throw reason right out the window!