Andrea Morehead/Eyewitness News
Nov. 15 - You may not see them, but they could be watching you. “We see a lot of stuff when we do surveillance,” says David, a private investigator, “and there is also a lot of sitting and waiting.”
But this private eye isn’t trying to catch a cheating spouse. He’s looking for employees trying to cheat the system at your expense. He works for one of the biggest investigative firms in the area-Phenix Investigations.
They use all types of high-tech toys like pagers and glasses with built-in cameras to catch unsuspecting workers doing something they shouldn’t.
“Videotape doesn’t lie,” says Phenix owner Brian Bauer, who explains why companies turn to him for help. “Law enforcement cannot keep up with the ongoing problems, so companies are forced to outsource.”
His company is hired across the country to track down drugs problems, theft or fraud in the workplace. Bauer says his job is clear, “People make bad decisions, wrong choices. And our job is to clean up that issue and let the employee base know that that company has zero tolerance.”
According to industry experts, one of the biggest problems for business owners is theft of time, when employees call in sick or claim to have an injury when they really don’t.
Phenix investigations provided Eyewitness News with undercover surveillance video showing some past cases. Among them was a man who claimed he couldn’t work because of a shoulder injury, but is caught on tape rappelling almost 50 feet to the ground using all his weight. He was later fired.
Numerous other employees claiming to be injured are on the undercover video doing everyday things like shopping or working in their yard. Some are even seen playing with kids on a trampoline or working on their roofs or at other jobs.
Bauer says it’s not uncommon for some workers to claim they are injured so they can make money under the table by working another job while getting workers compensation benefits.
You might be asking, why does all of this matter to you? Well it is estimated insurance fraud is an $80 billion crime each year. Experts say paying fraudulent claims means higher premiums for honest workers.
Indianapolis attorney Andi Metzel says, “When you have folks who take advantage of the system, then it affects those benefits being offered to all employees.”
Metzel, who specializes in employment law, says workforce investigations are becoming more popular as companies try to cut down on fraudulent claims. And she doesn’t question the ethics of undercover video as long as it’s in a public place. “When they’re supposed to have an injury that keeps them from performing their regular job functions, is it really an invasion of their privacy? They’re in a public location.”
Bauer say the longer employees try to cheat the system the more likely they are to get caught. “It’s only a matter of time. They may get away with it once or twice, but it’ll eventually come around and they will be caught.”
Right now Indiana is only 1 of 10 states that does NOT have a dedicated fraud bureau. The state’s Department of Insurance is working with lawmakers to try and change that.
Meanwhile, if you would like to report fraud of any kind, contact the Indiana Inspector General at 232-3850