4WARN Insights Blog
What NICB and 4WARN Are Uncovering About TPLF and Digital Risk
November 19, 2025 | By Todd Kozikowski, CEO, 4WARN®
Third Party Litigation Funding (TPLF) has been getting more attention lately, and for good reason. At a high level, TPLF is simple. Investors put money into lawsuits in exchange for a share of the outcome. When it works the way it’s supposed to, it can help people who need financial support pursue legitimate claims.
But the reality is a lot more complicated, especially when you look at how TPLF is influenced by digital behavior. That’s where things start to change, and where organizations are starting to feel the impact.
What many people don’t see is how outside funding and digital opportunists often work in the same ecosystem. Some groups build fake websites that mirror those of reputable brands. Some publish content designed to confuse policyholders or redirect them. Others run expensive paid search campaigns to steer people toward litigation before they ever talk to their insurer or provider. These tactics shape who files a claim and what happens next. When people are steered into litigation they don’t fully understand, funders profit while organizations and consumers pay the price.
To get a clearer picture of what is actually happening online, 4WARN partnered with the National Insurance Crime Bureau. NICB has spent decades investigating fraud and protecting consumers, and they brought a deep understanding of how criminal behavior evolves. Our team brought digital visibility into how opportunists operate at scale. When we combined those strengths, we were able to see patterns that neither organization could have seen alone.
Across the companies we analyzed together, we saw large volumes of online activity designed to influence claimants and escalate disputes. The scale of it was significant. Opportunists were using search, content, and targeting to reach people at the very moment they were most vulnerable or confused about their options. In many cases, the activity was tied to litigation that benefits outside funders more than anyone else. This has consequences that ripple through organizations, communities, and consumers.
It's important to be clear about something. Most law firms work hard to support claimants who need help. They play an essential role in guiding people through difficult and often emotional situations. We are not concerned about those firms, but instead with the group of opportunists who use digital manipulation to manufacture volume, distort information, and push people toward outcomes they may not fully understand.
NICB has been vocal about the need for more transparency. In its recent communication to congressional leaders, the organization highlighted how opaque funding arrangements can create openings for fraud and harm consumers if they aren’t monitored. That message aligns closely with what we saw in our joint analysis.
As digital exploitation becomes more sophisticated, organizations need clearer visibility into how this activity happens. Policymakers need better insight into who’s funding what. And industries need to understand how online influence and outside investment can shape risk long before a claim reaches a courtroom.
To support this initiative, NICB and 4WARN created a condensed version of our joint Threat Assessment that is available to the public. It outlines the tactics we observed, the scale of online targeting, and practical steps that organizations can take to protect themselves.
Explore the Third Party Litigation Funding Digital Risk Report
Download the condensed NICB / 4WARN report to learn more about how TPLF is shaping digital risk and what your organization can do to stay protected.
About the Author
Todd has over 25 years of experience founding and transforming multiple technology companies, leading organizational growth from start-up to post IPO, and helping build more than $5 billion in market value.
Earlier in his career, Todd co-founded and held leadership roles at Silknet (acquired for $4.2B by Kana), Unica (acquired for $480M by IBM), and Newforma (acquired by Battery Ventures).
Critical to the research that unearthed tech-enabled claim instigation, Todd has developed machine learning algorithms and analytical approaches that predict future events to help measure next-generation cyber risk targeting insurance organizations as well as impacts to financial solvency.
Todd is a graduate of Bates College with degrees in Physics, Astronomy, and Mathematics with advanced studies from the Smithsonian Center for Astrophysics at Harvard University.
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