Nudging and Insurance Fraud

Do Mouse Movements Reveal Fraudulent Behavior?

In online contexts, most information is provided through online forms. Providing fraudulent information in online forms is pervasive, resulting in costly consequences for organisations and even society. Furthermore, detecting fraudulent responses in online forms is often very difficult, time-consuming, and expensive.

Researchers from the Institute of Informations Systems examined how a simple nudge (reminding people on their own moral standards) affects fraudulent behavior and whether users’ mouse movements may reveal fraudulent behavior. The results suggest that providing a simple “moral” nudge reduces fraud. Further, being deceptive increases the normalised distance of movement, decreases the speed of movement, increases the response time, and results in more left clicks. Website designers can use these findings 1) to reduce fraudulent behavior and 2) to track it in real-time.