Claims fraud happens when people look to benefit financially from a claim by exaggerating or fabricating the details of a claim. Fraudulent claims can be paper based, where people complete false details on a claim form or actual crashes played out on the roads, causing injury and event fatalities. Whichever method is used by the fraudsters, this is not a victimless crime. 

However bleak this picture painted by the statistics, the good news is that insurers are spending a lot of time and money in combatting individual cases of fraud and organised groups creating crash for cash scams. Our in-house claims manager Kevin Dean and the team recently attended a webinar hosted by Allianz to supplement their extensive knowledge and help equip our clients so they can be vigilant and spot the signs of a possible fraudulent claim. 

Firstly, lets explain what we mean when we talk about crash for cash; Crash for cash scammers cause an accident so that they can blame the innocent driver. …for example: the crime involves an induced accident - involving one vehicle and one motorbike or scooter driven by a criminal - deliberately creating a crash involving unsuspecting motorists.[2] 

The three steps insurers target are detection, disruption and prevention. However, for our clients this article will focus on awareness, action, and safeguarding.

Awareness of Crash for Cash Scenarios

We’ve explained what crash for cash incidents are, they often involve scooters or motorbikes and can happen on busy streets or near junctions when a junction or oncoming traffic is obscured. There is a helpful video on the Insurance fraud bureau  and this example from Sky News. There are several things you can do to increase your awareness including: 

1. Keep your distance from other vehicles. 

2. Drive safely and stick to the highway code.

3. Look ahead to spot any potential hazards including unusual driving behaviour.

4. Focus on vehicles and not just their lights, as fraudsters often disable brake lights.

5. Be cautious when pulling out of a side road, especially if encouraged to.

6. Be cautious if the vehicle has existing damage (such as rear dents), stay calm and keep back.

7. If you think you see suspicious behaviour, report it.

Action if you think you’re involved in a fraudulent accident

If you're involved in a traffic collision, it can be upsetting and emotional. However, it's important to be able to spot warning signs of possible scam situations and take appropriate action. Here are some things to look out for and steps to follow:

• Record the scene thoroughly: Take photos and collect details of all people involved, including witnesses. Use the claims web portal to prompt you to obtain essential information. Document distinguishing features of individuals, such as tattoos, as fraudsters may use false details. If the area is covered by doorbell footage, CCTV, or if you have dashcam footage, ensure its secured and saved.
• Be aware of suspicious behaviour: Watch for unusual conduct, such as the driver having friends nearby, taking photos quickly afterwards, not appearing shaken by the accident, or being overly friendly. Be cautious if other parties claim injuries that seem disproportionate to the accident. Look out for pre-written insurance information being handed to you or exaggerated reactions.
• Stay vigilant on the road: Be aware of cars driving erratically or braking suddenly for no reason. Maintain a safe following distance, especially at roundabouts and traffic lights where staged accidents often occur.
• Use technology: Install a dashcam to record incidents and provide evidence. Consider using telematics devices that can record speed, braking, and impact data.
• Collect information carefully: Note the number of passengers in the other vehicle. Gather contact information from independent witnesses.
• Report and communicate:  If you have any doubts about the legitimacy of the claim, inform your broker or insurer immediately. Contact the police if you believe a crime has been committed.
• Additional precautions: Keep your vehicle in good condition to reduce the risk of genuine accidents. Use the Clarke Dove claims portal to capture essential information.

By following these steps, you can better protect yourself against fraudulent claims and "crash for cash" scams while ensuring you have the necessary information if a genuine accident occurs.

What Are Insurers Doing About Fraudulent and Crash for Cash Claims? 

We want to reassure you that insurers are working hard to stop all types of claims fraud at source, many of whom employ teams of claims fraud investigators, intelligence professionals, and crime prevention managers whose role it to identify and reduce claims fraud. The best outcome is for those behind the fraud to be identified and brought to justice. The City of London Police has its own Insurance Fraud Enforcement Department (IFED).

Success Articles

City of London police Ten arrested in police crackdown on commercial insurance fraud.

Warwickshire police Prison for classic car fraudsters who made more than £225k in elaborate insurance scam.

The guardian UK drivers warned to watch out for ‘crash for cash’ fraud claims.

Insurers are working closely with authorities to highlight the dangers, disrupt the organised groups committing fraud, prevent it from happening and making sure any loopholes in policy or process are closed making it a much less attractive prospect for a would-be fraudsters. 

We are doing our bit to by making sure our clients are informed and know how to spot the signs and what to do if they suspect something isn’t quite right. We are also making sure that we are learning from the training materials and information provided to us by our insurer partners and putting this into practice each day. 

The launch of our Claims web portal earlier in the year can be a pivotal tool to assist you in reduces the risk to you or your business becoming a victim of fraud. With features including photo, and video uploads, this prompts you to capture essential information at the scene.

We would encourage you to use the Claims portal at the scene of an incident where possible. It’s as easy as scanning the QR code or clicking on the link below, which takes you directly to the web reporting page.

We can provide QR code stickers upon request which can be kept in the vehicle for your ease of use. Please do contact us if you would some sending to you.

We want to assure you that if you are in a collision, genuine or otherwise that we’ve got your back and will be on hand to help you. 

Ways to Report a Motor Claim

We have three different ways you can notify us of a motor claim. 

During Office Hours - 0115 9628342

Out of Hours Claims Line - 01522 581444. 

Motor Claims Reporting Portal – Click here

Or scan the QR code shown below.

Whichever your preferred method of reporting, we are here to support you. 

Sources:

[1] Claim data for motorbike couriers / delivery drivers’ insurance fraud detected – increased by 6250%

[2] Crash for Cash – Allianz - Allianz news-and-insight