Analysis by the Insurance Fraud Bureau (IFB) into potential “crash for cash” scams relating to fraudulent motor insurance claims has revealed that here in the UK it is Birmingham that has possibly the most number of cases. Such a scam is where someone deliberately causes a road traffic accident that also involves an innocent party or makes one up to try to be compensated financially.
Between the 1st October 2019 and the 31st December 2020 the IFB looked at 2.7 million claims made on motor insurance policies. As a result, it found that in excess of 170,000 of the claims could be connected with possible “crash for cash” scams. Of course, those scams involving a collision can put the lives of a number of people at risk or one or more people could suffer serious life changing injuries.
The top 10 high-risk postcodes were: –
1. B25 Birmingham
2. B34 Birmingham
3. B8 Birmingham
4. BD7 Bradford
5. BD3 Bradford
6. WS1 Walsall
7. BB9 Blackburn
8. BD8 Bradford
9. B27 Birmingham
10. RM18 Romford
Apparently, investigations made by the IFB have revealed that one group of fraudsters could be responsible for thousands of fraudulent claims. The total monetary value of such claims can amount to millions of pounds.
Unfortunately, one of the impacts of “crash for cash” claims is that they can increase the amount paid by all motorists for their motor insurance cover. This is because the more that insurance companies have to pay out to meet motor insurance claims can potentially result in premiums increasing.
As more and more motorists return to the roads this may result in a rise in the number of such claims being received so drivers should try to be vigilant. Motorists may wish to consider investing in a dashcam as such a device may help them provide evidence of a “crash for cash” road traffic accident. Keeping a safe distance from other vehicles may help reduce the possibility of being caught up in such a scam where the fraudster is driving in front of you and suddenly puts on their brakes in the hope that you drive into the back of their vehicle.
If you suspect that you may have been involved in a “crash for cash” scam then you can report the matter to the IFB via Cheatline (powered by CrimeStoppers) on 0800 422 0421 or on their website or you can report such scams to Action Fraud that is the National Fraud & Cyber Crime Reporting Centre.