Crash for cash: Insurance fraud set to rise, experts warn

The Insurance Fraud Bureau warns the public to be prepared for increased incidences of ‘crash for cash’ scams and other forms of insurance fraud

Crash for cash scams and other insurance fraud schemes are likely to become more common as people look for easy money in the face of the current economic climate, experts have warned.

Fraudulent insurance claims increased 17 per cent in the wake of the 2008 recession - and the Insurance Fraud Bureau (IFB) fears the economic impact caused by Covid-19 could cause a similar spike. Last year, there was a five per cent rise in fraudulent claims.

One form of insurance fraud that the public is being warned to look out for is crash for cash. This is where a fraudster drives dangerously - typically slamming on the brakes in front of another car - to intentionally cause a collision and then claim for compensation.

One in ten road traffic collisions are linked to a suspected crash for cash scheme, which can leave innocent motorists injured and out of pocket, in many cases losing their no claims bonuses. The IFB also warns that drivers who haven’t been driving as much as normal due to Covid-19 restrictions may be at additional risk if their road skills are somewhat rusty.

An insurance scam of some form takes place every minute in the UK, costing consumers more than £3billion per year. To help combat this, the IFB, the Association of British Insurers and City of London Police Insurance Fraud Enforcement Department are launching a Stop the Scams advertising campaign, which will see animated scam warnings rolled out across social media.

Ben Fletcher, director of the IFB, said: “With Covid-19 causing so many people to lose out financially, it sadly means there are more opportunities for insurance scammers to exploit the vulnerable. These fraudsters don’t care who suffers - from the elderly to key workers, we’ve seen them get targeted.”

Detective Superintendent Peter Ratcliffe, head of the City of London Police’s Economic Crime Funded Units, added: “Fraudsters will use any opportunity to try and steal money from the public, including the exploitation of tragic events such as the current worldwide Covid-19 pandemic.”

Click here for information on how to beat insurance fraud scams....

Recommended

Covid-19: what it means for motorists and the car industry
Motorway
News

Covid-19: what it means for motorists and the car industry

Everything you need to know about how Covid-19 affects cars, motorists and the car industry in the UK
6 Apr 2021
April new car registrations up 3,177%
Ford Fiesta
News

April new car registrations up 3,177%

Last month saw a monumental upswing from April 2020, when pandemic-struck Brits bought just 4,321 cars - but month was still 12.9 per cent down on dec…
5 May 2021
UK car production rises but still down on five-year average
Production line
News

UK car production rises but still down on five-year average

Manufacturing rose 46.6 per cent year-on-year in March 2021, but was still 22.8 per cent lower than the five-year March average
28 Apr 2021
UK Driving tests restart but learner drivers face long waits
Driving test

UK Driving tests restart but learner drivers face long waits

Learner drivers in the UK face a 17-week wait between booking and taking their practical driving test
22 Apr 2021

Most Popular

Appreciating cars: classic cars that go up in value
Appreciators: Renault 5
Features

Appreciating cars: classic cars that go up in value

Looking to invest in a modern classic? Here are some cars destined to appreciate in value
4 May 2021
Genesis to launch in Europe this summer with line-up to rival Audi and Mercedes
Genesis G80 and GV80
Genesis

Genesis to launch in Europe this summer with line-up to rival Audi and Mercedes

The Genesis G80 saloon and GV80 SUV will take on the Mercedes E-Class and GLE off-roader as the Korean luxury brand sets its stall out in Europe
4 May 2021
New 2022 Skoda Fabia grows in size and gets tech boost
Skoda Fabia - front
Skoda Fabia

New 2022 Skoda Fabia grows in size and gets tech boost

The new fourth-generation Skoda Fabia supermini is expected to hit UK showrooms early in 2022
4 May 2021