The Insurance Fraud Bureau (IFB) has released details of the UK’s top hotspots for motor insurance fraud, based on an analysis of 3.3 million claims.
The findings: Barking and Dagenham in east London is the most prevalent area for fraudulent motor insurance claims in England; then come Birmingham and central London. Other top hotspots include Cemaes Bay in Wales, Crieff in Scotland and Crumlin in Northern Ireland.
Detected fraudulent claims have increased according to the insurance sector; and the IFB says that it’s receiving more public reports of insurance fraud than ever before. A new range of scam tactics are gaining traction according to the IFB, set up by insurers. That includes ‘crash for cash’ roundabout stunts, and new drivers’ details being stolen off social media, as posted by the proud holders of a driving theory test certificate or driving licence; to aid bogus claims. The IFB is drawing attention to areas at increased risk of motor insurance fraud and the warning signs. The aim is to help protect communities and empower people to report to CheatLine, a free and confidential insurance fraud reporting tool.
Jon Radford, Head of Intelligence, Investigations and Data Services at the IFB, said: “Insurance fraudsters are relentless, and their tactics are evolving fast. By revealing the UK’s top motor insurance fraud hotspots, our aim is to help protect those who are at greater risk. Insurance scams can put people in danger and drive up costs for honest consumers, at a time when many are already under financial pressure. We’re working closely with the police and insurers to stop this activity, and we urge the public to stay alert and report suspected insurance fraud to our confidential CheatLine.”
About CheatLine
It’s run by the charity Crimestoppers, to allow anonymous reporting of any crime, either online or via a free phone line 0800 422 0421. Visit https://insurancefraudbureau.org/en/insurance-fraud/the-cheatline.
Crash for cash signs
Tactics, include roundabout traps in Dagenham: Scammers deliberately moving into the wrong lane at busy roundabouts to force a collision. Side road setups see fraudsters encouraging drivers to pull out of side roads without right of way and then driving into the side of them, with reports near restaurants and nightlife areas in the West Midlands. And in moped scams in London, motorbike scammers driving into oncoming traffic, often with an accomplice to accuse victims of fault. Such incidents are largely across London and the Home Counties but can be in other parts of the UK. Other tell-tale signs of a crash for cash can include vehicles with disabled brake lights or pre-existing damage, along with passengers exaggerating injuries and being provided pre-written insurance details after a collision.
At the trade body the Association of British Insurers Mark Allen, Head of Fraud and Financial Crime, said: “The IFB’s latest analysis of the UK’s motor insurance fraud hotspots is a timely reminder that fraudsters are becoming bolder and more sophisticated, and that the industry is responding with even greater resolve. Working closely with the IFB, insurers are stepping up intelligence‑sharing and deploying new tools to identify and stop scams before they cause harm. We urge the public to stay vigilant and report anything suspicious, because every report helps us protect communities and hold criminals to account.”
Frauds
Among the frauds, bogus delivery driver roles are listed online, to steal driving licence and insurance details from job seekers, the IFB says.
Ghost brokers
The financial services watchdog the FCA meanwhile is warning 17-to 25-year-old drivers about ‘ghost broking’ scams where criminals sell bogus insurance policies through social media and messaging platforms.
About the IFB
The 20-year-old not for profit body acts as a hub for industry members to share intelligence. Visit https://insurancefraudbureau.org/.
