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Cash for crash tactics and how to reduce your exposure

According to the Insurance Fraud Bureau, a company established to fight against insurance fraud, 'Crash for Cash' scams, where fraudsters deliberately manufacture collisions with innocent road users to profit from fraudulent insurance claims, are costing around £340m a year. This, of course, puts innocent motorists in danger and feeds into insurance premiums, leaving honest motorists and fleet managers to pick up the tab.

Written by Paul Brown on 23rd July 2019

Cash for crash tactics and how to reduce your exposure

According to the Insurance Fraud Bureau, a company established to fight against insurance fraud, 'Crash for Cash' scams, where fraudsters deliberately manufacture collisions with innocent road users to profit from fraudulent insurance claims, are costing around £340m a year. This, of course, puts innocent motorists in danger and feeds into insurance premiums, leaving honest motorists and fleet managers to pick up the tab.

Scammers are always looking to extend their repertoire of forcing unsuspecting motorists to have collisions and then claiming for bogus injuries. The latest ploy involves hiding in a driver's blind-spot before quickly accelerating in front to slam on the brakes and force an unavoidable shunt.

Accident assistance company AX has identified this latest ‘hide and crash’ tactic following several suspicious claims which displayed near identical underhand characteristics.

 

 

 

  

 

 

 

The top 5 scams are as follows:

1. Traditional ‘slam on’ accidents

Where the scammer’s vehicle in front intentionally slams on the brakes so that the driver behind cannot avoid a rear end shunt.

2. Flash for crash

Where the scammer’s driver flashes their lights to beckon another vehicle forward but then drives into them.

3. Crash for ready cash

Where a scammer requests cash to fix their vehicle after they have induced a collision.

4. Hide and crash

Where the scammer’s vehicle ‘hides’ in the blind spot of another car before moving in front and braking hard.

5. Hire and crash

Where the scammers hire a car and stage an accident with another vehicle, usually someone they know.


The top 5 locations favoured by scammers:

Scammers look for places where it is unlikely and or unsafe for potential witnesses to stop and the Top 5 locations are as follows:

1. Major roundabout

These are favoured as scammers know that drivers can be distracted by heavy traffic, multiple road signs and signals.

2. Small out-of-town roundabouts

These give scammers an easy escape route after a collision and these junctions are rarely monitored by CCTV.

3. Busy motorways

These allow the scammers to take advantage of drivers being focused on the fast-moving traffic around them and deploy ‘hide and crash’ attempts on unsuspecting individuals.

4. Traffic lights

Scammers favour these as they know that potential witnesses will be reluctant to stop and help.

5. Turning from a side road

These offer scammers a location that is unlikely to be monitored by CCTV cameras.


So how can the honest motorist protect themselves from the costly and time consuming aftermath of these scams?

Motorists should be aware of the types of scam and the most likely locations where they may be at risk. They should watch for passengers looking back, and not interpret flashing headlights as an automatic invitation to pull out of a side road.

However, for the unfortunate victim it is difficult to prove their innocence when the tactics used are engineered to make them appear to be the guilty party.

The number one assistance for motorists trying to plead their innocence remains the video evidence provided by a dash cam.


Top 5 tips to guard against 'cash for crash' fraud

1. Look for independent witnesses, or CCTV, or use dashcam footage.

2. Take photographs of the cars before they are moved.

3. Note the registration number of the other vehicle(s).

4. Count number of occupants of the other vehicle(s).

5. Ask for all names of occupants of the other vehicle(s).


Source: https://www.insurancefraudbureau.org/insurance-fraud/crash-for-cash/

              https://www.ax-uk.com/news/motor-fraudsters-adopt-new-hide-and-crash-tactic


See other blogs related to: Fraud , Insurance

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