A recent investigation in the U.K. led by the Insurance Fraud Bureau (IFB), the City of London Police’s Insurance Fraud Enforcement Department (IFED) and several insurers showed an estimated 2,250 people in London have been victims of crash for cash schemes involving mopeds in the last two years. These moped incidents have become so frequent that IFB Director Ursula Jallow referred to them as an “epidemic.”
Crash for cash accidents are fraudulent insurance scams in which a person intentionally causes or fabricates an auto accident in order to profit from the insurance claim.
According to the Association of British Insurers (ABI), there are three different types of crash for cash schemes:
- The staged accident: Perpetrators either crash their own vehicles together or mimic damage that would be caused in an actual crash.
- The induced accident: Fraudsters target an unassuming driver to become the ‘at fault’ party in an accident. They may acccomplish this by doing things like slamming on their brakes while in front of the target vehicle.
- The ghost accident: These accidents never happened – staged or otherwise. In this case, fraudsters file completely fabricated insurance claims in order to receive the payout.
Induced accidents involving mopeds can look a little different than those utilizing cars and larger vehicles, however. According to the IFB, these often involve the scammer hiding out of sight – like in a side street or parking space – and then driving into the victim as they approach. These scammers will often make a show of throwing their moped on the ground and pretending to be injured before taking photos of the wreck.
Not only can crash for cash scams cause physical harm to innocent motorists and bystanders, but these fraudulent claims can also cause premium hikes for the target following the “accident.”
The IFB advises drivers in the U.K. do the following to help avoid falling victim to a crash for cash scam:
- Keep a good distance from the vehicle in front of you so you have time to stop safely if the suddenly stop or slow.
- Look ahead to spot potential hazards, including bizarre driving behavior.
- Fraudsters will often disengage a vehicle’s brake lights, so it is imperative drivers focus on the actual vehicles around them, rather than those vehicles’ lights.
- Be careful pulling out of side roads, especially if a stranger is encouraging you to do so.
If you are involved in a collision and the other driver or their passengers seem unphased by the collision, exaggerate their injuries or hand you pre-written insurance information, you may be the target of a crash for cash scam.
Those in the U.K. who believe they may have been a victim of a crash for cash scam can report the activity to the IFB Cheatline.
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