Facebook, Social Networking, and Insurance Fraud.
Written by Marlo .
Last week, Facebook received the praise of privacy advocates after successfully denying a subpoena request in a civil matter in Virginia.
A Virginia employer demanded Facebook produce “all documents, electronic or otherwise, related directly or indirectly, to all activities, writings, photos, comments, e-mails, and/or postings” related to an employee’s postings about a recent vacation. The employer alleged the postings suggested that the employee (receiving workers’ compensation) was not as injured as she claimed. Virginia joined with the employer and threatened $200 per day in fines until Facebook complied. Facebook has good lawyers and they suggested that the employer and Virginia read the Electronic Communications Privacy Act (ECPA). The Virginia’s Workers Compensation Commission agreed to reverse itself last week.
Social networking sites are proving to be great sources of information for insurers, employers, and investigators when investigating alleged insurance fraud. And this is not only in the U.S. A recent article in the U.K. Telegraph details how a man boasted of his lifestyle on Facebook while taking nearly $33,000 in housing benefits. The Canadian Press has a similar story about a man who claimed, after a car accident, that he couldn’t play pool and yet his Facebook page captured a life full of activity. The Judge stated he found it “incredible” that the man’s “social life miraculously improved in the few months he was communicating on Facebook.” Personal injury lawyers understand that social networking sites can destroy a case by providing a free “peek” into their client’s life.
Facebook, Social Networking, and Insurance Fraud. originally appeared on About.com Business Insurance on Monday, September 21st, 2009 at 16:46:27.