Their actions cost road users £340m a year – now, as Sean O’Grady discovers, ‘cash-for-crash’ fraudsters have adopted a dangerous new tactic to trap unsuspecting drivers
The Insurance Fraud Bureau (IFB) estimates that “cash-for-crash” scams cost insurers around £340m a year, pushing up premiums for other motorists as well as adding to the stress of dealing with a contrived accident.
Despite greater police and industry awareness, there seems to be no let-up in people deliberately braking or colliding with other vehicles in order to secure an insurance payout for damages and injuries that are utterly spurious.
Now AX, an automotive software company specialising in this field, warns that the fraudsters have adopted a dangerous new tactic to trap unsuspecting drivers in their scheming.
“Hide and crash” is the latest method used, and an evolution of previous tactics. It involves a fraudster hiding in a driver’s blind spot before quickly moving in front to slam on the brakes. This latest trend was noticed when AX detected several suspicious claims displaying near identical characteristics.