Crash for cash scam explained by Insurance Fraud Bureau
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Car insurance fraudsters can claim “huge” amounts of revenue from fraudulent claims with ordinary road users likely to foot the bill. Money lost needs to be re-generated with ordinary road users likely to see increased premiums as a result.
James Dalton, Director of General Insurance Policy at the Association of British Insurers (ABI) has urged road users to be “on their guard”.
He said: “These criminal gangs are often highly organised and put lives at risk.
“The amounts that they fraudulently claim can be huge, and can impact on the motor premiums paid by honest motorists.
“With more vehicles on the roads as we emerge from the pandemic restrictions, so the potential targets for these criminals increases.
“This is why it is so important for all motorists to be on their guard – if you suspect an incident is suspicious do not put yourself at risk, but report your suspicions to the IFB’s confidential Cheatline.”
The warning comes after a new investigation from the Insurance Fraud Bureau (UFB) shows Birmingham is the UK’s Crash for Cash hotspot.
Crash for Cash scams are when fraudsters intentionally crash into other road users to claim on their compensation.
Some scammers will drive erratically in front of drivers and then suddenly brake so it looks like an accident.
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The IFB has warned fraudsters have been seen to hit drivers when encouraging them to pull out of the road or when creeping forward for a better view.
Detective Chief Inspector Edelle Michaels, Head of the City of London Police’s Insurance Fraud Enforcement Department (IFED) said this fraud does “cost everyone”.
She confirmed honest drivers would face higher charges as firms passed on losses to drivers.
She said: “The staging, or fabrication of collisions is often seen as a victimless crime.
“In reality, this fraud costs everyone by increasing the price of insurance premiums, meaning that honest policyholders are faced with higher costs.
“IFED is committed to combatting ‘Crash for Cash’ criminals, whether they are opportunistic fraudsters or part of a wider organised crime group.
“We will continue to work collaboratively with the industry to stop this type of fraud and to educate the public on how best to protect themselves.”
The IFB has urged drivers to keep an eye out for some tell-tale signs displayed by Crash for Cash scammers.
Key signs include the driver or passenger appearing to be unphased or appearing to exaggerate their injuries after a crash.
Another sign is if drivers hand over pre-written insurance information after a collision.
Evidence of a ‘Crash for Cash’ scam can be reported to the IFB’s confidential and anonymous Cheatline (powered by CrimeStoppers) on 0800 422 0421 or at www.insurancefraudbureau.org/cheatline
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