The Insurance Fraud Bureau (IFB) is warning motorists to watch on the roads; their data suggests that January 29 is the day you are most likely to be targeted by a crash for cash fraudster. Hence the Bureau seeks to highlight the issue. IFB estimates that crash for cash scams cost £340m a year, and put lives at risk.
Drivers are warned to remain wary of induced accidents, where fraudsters deliberately try to make an innocent motorist crash in to them to make fake insurance claims. Fraudsters will often drive erratically, slamming on their brakes for no obvious reason to cause the car behind to collide into them. Or, fraudsters may use a second ‘decoy vehicle’ to make a sudden, apparently unexpected manoeuvre. The other vehicle in the scam, following behind the decoy, will then slam on their brakes in the hope that the intended victim won’t be able to stop in time. The decoy car will then typically disappear, making it difficult to prove it was ever part of the scam.
Fraudsters will then submit insurance claims often exaggerating their injuries and claiming for multiple ‘phantom’ passengers who may not have ever been in the car at the time. These claims often run into thousands of pounds.
Organised gangs often repeat crash for cash scams in a number of locations. Last year, the IFB released its crash for cash hotspots data, showing the UK’s top 30 most high risk postcode districts for crash for cash scams. Birmingham had the highest representation on the map, with Greater Manchester and Bradford also featuring multiple times.
Ben Fletcher, Director of the IFB, says: “Crash for Cash Awareness Day hopes to highlight the problem and raise awareness amongst the general public about this potentially lethal crime. While the hotspots data highlighted the worst affected areas, crash for cash is a nationwide problem. At the IFB, we work hard to detect organised insurance fraud, often leading to custodial sentences for these dangerous fraudsters. It’s important that we continue to do so and by working together with Police and insurers, we can bring these fraudsters to justice.”
If you believe you have been a victim of crash for cash, note as much information as you can about the event, take photos if it is safe to do so, call the police and report your suspicions, the Bureau suggests. You can also report an incident to the IFB’s Cheatline by calling 0800 422 0421.
The City of London Police website has advice for motorists to help them avoid being victim of a staged collision.
