Crash For Cash Scam Is On The Rise Says Report

Thu 6th Aug 2020

Incidences of insurance fraudsters staging collisions to profit from insurance claims are on the rise according to one of the UK’s leading motor insurance organisations.

Cifas, the UK’s largest cross-sector fraud sharing organisation, has revealed that ‘crash for cash’ schemes are the fast growing insurance fraud’s in the country, with a year-on-year rise of 45 per cent. The average for insurance fraud across all categories is 27 per cent.

The schemes take the form of three categories; staged collisions, ghost collisions and induced collisions. The most popular form of crash for cash is when a car in front brakes sharply causing a rear-end collision.

According to the Insurance Fraud Bureau the scams are costing the insurance industry £340 million a year, losses which will generally be passed on to the consumers via higher premiums.

Neil Thomas, Director of Investigative Services at AX, a vehicle protection and management technology provider, said: “Criminals will do anything to milk the motor industry and drivers, evolving their tactics to keep people guessing and avoid detection. 

“We can’t completely stamp out their activities, but we can collectively do more to curtail what is a real and growing danger to drivers. 

“Recent experience has shown how some criminals have used the Covid-19 pandemic lockdown to plan motor insurance frauds, and they are now intent on cashing in at the expense of innocent motorists.”