Motor insurance fraud is more commonplace now than ever before and fraudsters have a series of ways in which they may commit fraud to illegally claim money. Unfortunately, despite the best efforts of police, insurers, and investigators, many do get away with it – in fact, it is estimated that undetected insurance fraud cases total more than £2bn in claims every single year.
There are many ways in which fraudsters may commit fraud, either acting alone or as part of a fraud ring. Below are some of the more common types of insurance fraud accident that you might be involved in and the methods that criminals use to swindle money. Crash for cash is only one of a number of different insurance fraud methods.
Staged accidents typically require research and work on the part of the fraudster, and as well as the driver there will also usually be staged witnesses on hand to corroborate the inaccurate story of the criminal. Accidents can be staged in various locations and you should always try to ensure that you gather your own witness details, although do be aware that a staged accident will normally take place somewhere where the fraudsters can manage the situation and ensure that there are no other witnesses.
In an induced accident, the fraudster or fraudsters will induce an accident through their actions ensuring that they are able to “prove” that you were at fault for the accident.
Flash for cash schemes are one of the most recent types of crash for cash fraud being reported. Cars with the legal right of way will flash another car out before then intentionally driving into them and claiming that they did not flash their lights. They may also have witnesses to hand to back up their version of events.
Phantom Passenger Claims
Phantom passenger claims may arise as a result of a genuine accident or a staged one. As the name suggests, this form of crash for cash sees the fraudulent driver claim that there were numerous passengers in the car and that they all suffered some form and some degree of injury.
It is important to note the number of passengers in the other car, if you were involved in an accident. You may want to try and take a photo in order to be able to back up your claim, if this is required at a later date but do be careful and ensure your own safety first.
One of the most common forms of insurance fraud is that of fraudulent claims. Again, these can occur even following a genuine accident but they can also occur following a staged or induced accident too.
The fraudster will usually claim that they have suffered considerable injury or that they have suffered some extreme loss, such as loss of earnings. These are both covered in compensation packages and if the fraudster is successful they could end up winning thousands of pounds or more as a result of their actions.
Organised fraud usually requires the involvement of more than one or two people and may even include the involvement of those working in car hire, claims, or repair companies. In some cases, it may even involve people that work within the car insurance industry too.
Organised car insurance fraud is treated very seriously and it is likely that organised groups, or fraud rings, are responsible for a large portion of the £2bn of undetected fraud that is committed every single year. Organised fraud rings are usually extremely well organised and can get away with large sums of money as a result of their ruse.