MILLIONS of drivers have been warned about a new scam targeting specific vehicles that could sting them for thousands.
Fraudsters are targeting innocent Brits to try and win big compensation payouts, according to a major insurance provider.
Insurers have warned over the rise of so-called ‘cash for crash’ scams[/caption]
So-called “cash for crash” scams are on the rise across the UK, the latest data from Allianz shows.
The firm found a 60-time increase in cases since the start of last year, while the Insurance Fraud Bureau (IFB) believes that £27 million is currently being fought over thanks to dodgy claims.
The hustle involves deliberately causing a crash in a way which makes it look like the other driver’s fault in order to win insurance payouts.
Common methods include suddenly stopping in a clear road (a.k.a brake checking), relying on the myth that the driver behind is automatically at fault in a rear-end collision.
Criminals often use cheap mopeds which they can easily write off and pocket the cash.
The dastardly scheme is particularly prevalent in major cities and could cost victims thousands, as well as plunging them into a lengthy and stressful dispute process.
Another insurer, Ageas, has now warned that there are also particular types of vehicles at higher risk of being targeted by scammers.
Experts at the firm are reporting a shift away from normal passenger cars and an increase in cash for crash incidents involving vans.
Fraudsters will apparently wait until a van is reversing and then pull behind it to cause a crash, taking advantage of the LGV’s significant blind spots.
However, everyday drivers are still at risk as another popular swindle is to take a similar approach to cars emerging from blind bends or junctions with low visibility.
Fortunately, it’s relatively easy to protect yourself from the scam.
All you need to do is make sure you can prove that you were not at fault for any collision.
The easiest way to do this is to install a dash cam on your vehicle.
Cheap cameras can be picked up for as little as £6 online and provide great protection against this sort of scam.
If you can submit video evidence that a crash was caused by deliberate or reckless action by the other driver, you will likely win the insurance case regardless of who went into who.
And if you don’t have a dash cam, it’s vital to compile as much evidence as you can to back up your story, including dash cam and video doorbell footage from other people.
Plus, you can report any suspicious collision to the IFB if you fear you may have fallen victim to a cash for crash attempt.
Matt Crabtree, head of financial crime intelligence for Allianz, said: “Organised criminal gangs have evolved their tactics so we’re seeing them move around and use small clusters across wider areas to try to avoid detection.”
Katie Davies, director of underwriting services and fraud at Ageas, added: “Our fraud intelligence team has seen a significant rise in this crash-for-cash scam, both in London and spreading to other large urban centres.”
How to avoid cash for crash scams
- Get a dashcam – it could be vital to prove who was at fault
- Take lots of pictures – including of any damage and of the other vehicle’s number plate
- Make notes – take down the other person’s name, address, insurance provider and a description of their motor
- Ask around – see if you can get hold of witnesses and dashcam/CCTV/doorbell footage from others
- Reach out – tell your insurer about the crash and report any suspicious collisions to the IFB
