It's probably accurate to say that most adjusters and examinershave handled dubious property insuranceclaims. Questions frequently arise as to the truecause of losses, the extent of the alleged loss, the insured'srepresentations during the investigation as to ownership, and thedocumentation submitted in support of the claims. 

Claims adjusters and examiners routinely request proof ofownership or purchase in the form of receipts or photographs of theproperty now claimed to have been lost or stolen. Policies of alltypes require an insured to provide information or evidence inaccordance with the policy's general conditions, sometimes calledthe cooperation clause or "Your duties after loss." 

Related: Did you really think you could get away with it?: 5amazingly brazen fraud cases

Bogus receipts or invoices have been created or fabricated bysome individuals. They may have obtained blank receipts from officesupply stores or actual blank receipts from retail outlets. Inother instances, actual receipts were modified by whiting out,cutting and pasting information, dates and prices. The fraudulentreceipt usually over-stated the value or cost of the item or thedate of purchase was changed. Falsified receipts were thenphotocopied and submitted as proof of purchase or acquisition. IfPolaroid photos were submitted, it was possible to determine thatan instant photo was taken after the date of loss because themanufacture date was imprinted on the back. Then computers wereused to create bogus receipts with computer programs such as AdobePhotoshop or similar software.

In the last decade, a myriad of digital devices including cellphones and smart phones, cameras and even digital audio deviceshave come onto the market. These devices record dates, times,conditions, settings, locations and more. The recorded data iscalled metadata and can be very helpful in the investigation ofsuspicious claims and suspected insurance fraud.  

Photo: P. Harman/PropertyCasualty360.com

Metadata

Merriam-Webster.com defines metadata as "data about data."Metadata represents a wide range of digital content embedded infiles which includes the following: how or by what means the datawas created or originated (phone, camera, audio or videorecordings, etc.); the purpose of the data; date and time ofcreation; the creator or author; location of the data on a computeror network; and the standards used in its creation.  

Related: Pocket technology and mobile deviceinvestigating

Metadata can be created by many devices in numerous formatswhich include photography, audio and video recordings, andtelecommunications. The usual standard format is JPEG which meansJoint Photographic Experts Group. The file extension is .jpg or.jpeg. There are many other image formats, but this discussion willfocus on digital photos (JPEG files) in the EXIF format(Exchangeable Image File Format).  

Here is an example of the EXIF information from a digital photo.To view the EXIF details:

• Put the cursor on the jpeg and right click.
• A menu drops down – now at the bottom of the list, left click "Properties."
• At the top tabs leftclick on the "Details." Depending on the camera, there maybe several categories of information to scroll down through. Theamount of information depends on the maker and sophistication ofthe camera and lenses.

Here is an example using an iPad:

               1.  The type of file:  JPG File (.jpg)

               2.  Location (which is on a desktop).

               3. The size and the size on the disk which is 244 KB.

               4. The date and time created (taken), date modified and accessed: September 17, 2014 at 9:41 a.m.

               5.  At the top of the box right click on the third tablabeled "Details." This will provide the following information:

 Description

               Title –

               Subject –

               Rating – Five Stars

           Tags –

 Origin

               Authors –

           Date Taken:  9/17/2014

Image

               Image ID – None

           Dimensions – 720×720

           Width – 720 pixels

           Height – 720 pixels

Camera

            Camera Maker – Apple

            Camera Model – iPad2

             F-stop – F/2.4

             ISO Speed – ISO-40

             Focal Length – 2 mm

             Max Aperture – 

             Metering Mode – Pattern

             Flash Energy – 0

             35 mm focal length – 59

 Advanced photo (Omitted here)

 File

                 Name– IASIU Car Fire5.jpg

             Item Type – JPEG image

             Folder Path – C:Userspharman/My Doc…

             Date Created – 8/17/2015 10:10 AM

             Date Modified – 8/17/2015 10:15 AM

             Size – 224 KB

             Attributes – RATI 

             Owner – SBMedia/pharman

             Computer – OFF05184 (this computer)

 GPS Enabled Cameras or Phones

                Provide Latitude and Longitudelocation data.

As of 2014, most digital cameras and cell phones will include abuilt-in GPS receiver which stores location information orcoordinates (longitude and latitude). Smartphones and Android areGPS enabled. GPS is sometimes referred to as "Geotagging."

Photo: kaczor58/Shutterstock

GPS Metadata

The GPS coordinates can be used to find the actual streetaddress or location where the digital photo was taken by usingGoogle Maps and map services. Was it taken at a storage facility,at the insured premises or at anotherlocation?  

There are free online apps that convert address information intoGPS coordinates and coordinates to addresses. Go to http://www.gps-coordinates.net/ for one source ofthese apps.

Global Positioning Systems (GPS) are installed in manyautomobiles as original equipment with the first year of GPSservices provided. Watercraft, agricultural equipment, commercialvehicles, heavy equipment and other business equipment and assetsroutinely use global positioning systems or black boxes. Businessesuse GPS to keep track of business assets and equipment, especiallythe location of commercial trucks and trailers. These devices alsomonitor and record how drivers use the equipment. The variouslocations of the equipment can be re-constructed by experts who canexamine on-board GPS equipment (or black boxes) and recorded datain tracking service provider's data.

Viewing "removed" metadata

Metadata can be removed from JPEGs but all is not lost ordeleted – the data is just hidden. Photo manipulation and paintsoftware such as Adobe Photoshop can be used to view, read, editand extract EXIF information. There are several free web or onlinephoto applications available which include "Online EXIF Viewer" and"Camera Summary." Several other EXIF viewers are also on themarket.

Use digital forensic experts

It is clear that metadata is a complex area of forensics withits own unique lexicon. Experts in digital forensic science shouldbe engaged in the investigation as soon as digital data isdiscovered that requires their expertise. It is also essential thatforensic experts actually qualify as experts in anticipation oflitigation.

A word of caution

The main purpose of metadata is to determine whether theinsured's representations regarding the facts of a loss, version ofevents, claims of ownership, existence and use of property claimedto have been destroyed, lost or stolen are true or false. It isclear that metadata can be used in connection with all types ofproperty and casualty claims including personal property andstructure losses, material or physical damage losses on automobilepolicies, such as owner give-ups, total theft and fraudulentcasualty on any personal lines and commercial property policy. Howmetadata can help in the investigation of suspected insurance fraudand other crimes is limited only by the ingenuity of theinvestigator.

A complete investigation is critical to resolving issues with questionableclaims. Confronting the insured about discrepancies inthe questioned claim as they arise would be premature. There may beother aspects of the claim that need further investigation.

The claims department must require that the insured comply withall general conditions (duties after loss) which include theproduction of books and records, and to an examination under oath(EUO). Let counsel for the insurer confront the insured under oathand on the record about his or her representations regarding anymatters related to the claim and insurance.

Michael H. Boyer has worked in the insurance industryexclusively in property and casualty claims since 1966. He is acontributing author to the Insurance Institute of America (IIA) onproperty loss adjusting and fraud and SIU operations. He is theauthor of "Property Investigation Checklists – Uncovering InsuranceFraud," and "Small Business NetIncome Loss Fundamentals."