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More commonly known as the Workers’ Compensation Fraud, this term is used to refer to an event where an employer or an employee has lied, misrepresented, faked, or exaggerated an injury, ailment, or illness in order to gain compensation from their insurers.

In other words, False Workers' Compensation claim is basically lying about getting injured in order to get money out of insurers. There have been incidents in the past that are a testament to the fact that both the employers and the employee can commit this fraud.

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