Yellowknife (May 03/04) - The Workers' Compensation Board of the NWT and Nunavut identified 65 fraudulent claims in 2003, saving the organization more than $2.2 million.

"Anytime when there's money being distributed in any organization, you certainly run the risk of fraud," said Dave Grundy, WCB manager of public affairs and information executive services.

Savings are calculated using the projected cost if the fraud had gone undetected.

With approximately 3,200 claims made by injured workers in 2003, the WCB said most of the claims it processes are legitimate.

"The vast majority of injured workers filing claims with us are very honest. We are dealing with a very small minority of people who defraud the system," said WCB president David Clark.

WCB only began investigating fraud on a full-time basis in October 2002, making it difficult to tell whether the number of fraudulent claims is increasing.

More claims have been identified but it's unlikely the total number of cases has changed, said Sarah McDermott, legal counsel for the WCB.

More money is also being spent to pursue investigations into claims which appear to be irregular, Grundy said.

Four full-time employees now work as part of the organization's fraud investigation unit.

Workers from southern Canada who get injured make a claim with WCB of the NWT and Nunavut then move back home to work while collecting compensation -- cases of this account for a majority of the fraudulent claims, Grundy said.

Some injured folks also try to prolong the time they're eligible to collect workers' compensation.

"They may be legitimately hurt initially, but their injury is sometimes not what they represent it to be," said Grundy. Problems with claims regarding subjective injuries, such as anything to do with the back, are especially common.

The WCB fraud investigation unit receives tips on possible fraudulent claims from employees and business owners.

The NWT and Nunavut fraud investigation unit also works closely with other provincial WCBs in order to identify workers who may be making claims in more than one province.