Crash for cash fraudsters caught out


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The rates of crash for cash accidents are on the decline according to findings from the Insurance Fraud Bureau

crash for cash

New figures reveal so called ‘crash for cash’ scams are on the decline with the overall cost of such fraud dropping by nearly £60 million in the past three years.

A major crackdown by insurers and police has forced insurance cheats to change tack and statistics from the Insurance Fraud Bureau (IFB) show such scams are now valued at £336million compared to £392 million in 2012.

However, it’s not all good news as the IFB has also reported a rise in different types of insurance scams and organised fraud including household property claims.

Ben Fletcher, director of the IFB, said: “Whilst today’s figures prove that the insurance industry, in partnership with police, is closing the net on ‘crash for cash’ fraudsters, our work is far from done.

“Fuelled by greed, insurance cheats still put innocent members of the public in grave danger when they deliberately cause crashes. We will leave no stone unturned in pursing these fraudsters, securing prison sentences and making our roads safer.”

Since it was set-up in 2006, the IFB has assisted with over 1,110 arrests, securing prison sentences totalling over 340 years for criminals orchestrating ‘crash for cash’ scams.

The IFB cite a recent example as the case of 48-year-old, Andrea Hill from Anchorsholme, who was convicted in April 2015 of fraud by false representation after claiming injuries from tripping over a pothole.

Hill colluded with other known fraud suspects and presented a claim for a trip outside of Gibson’s Newsagents in Preston. CCTV footage obtained by LV= proved that Hill was not in the area on the date/time of the alleged incident. The IFB is receiving intelligence to suggest that this type of scam is on the rise and involves organised professional fraudsters.

David Hertzell, head of the Government’s Fraud Taskforce, said: “Fraud is anti-social. It is the honest customer that ultimately picks up the bill for insurance cheats and it’s the lives of innocent motorists being gambled with when a ‘crash for cash’ fraudster stamps on their brakes on busy roads. The Government will continue to support the insurance industry in stamping out fraud, but we all have a role to play in exposing the criminals.”

‘Crash for cash’ – the facts

Findings from the IFB and a 2015 Ipsos Mori survey show:

• 1 in 10 – personal injury claims can be linked to suspected ‘crash for cash’ scams

• 55,573 – claims linked to suspected ‘crash for cash’ scams

• £1.3 million – average value of organised ‘crash for cash’ fraud ring

• 73% of public think ‘crash for cash’ is a big problem in the UK

• 71% of motorists are concerned about sustaining injuries in targeted crashes

• 79% of motorists are concerned about rising insurance premiums to cover the cost of fraud

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