Motorists across the UK are being warned about a significant rise in “crash for cash” scams, with London emerging as the top area for these fraudulent activities. The number of scams involving motorbikes has increased sixty-fold as criminals seek to exploit the insurance market.
The scams involve deliberate accidents staged by fraudsters who then blame innocent drivers to file false insurance claims. Criminals have been known to target drivers in various scenarios, including parking situations where motorcyclists intentionally collide with car doors.
Research indicates that 40% of these incidents occur during the school run and rush hour, typically between 3pm and 7pm. Lunchtime also sees a significant number of scams, with 27% of collisions happening between 11am and 2pm. Wednesdays are notably risky, accounting for another 27% of these fraudulent activities.
Matt Crabtree, head of financial crime intelligence and investigation strategy at Allianz’s personal lines business, highlighted the evolving tactics of organised criminal gangs.
“We’re seeing them move around and use small clusters across wider areas to try and avoid detection,” Crabtree said.
London remains the hotspot for such fraudulent activities, with over half of the incidents reported in the capital. South London is particularly affected, accounting for 42% of cases, while North London accounts for 26%. Specific hotspots include Croydon, Enfield, and areas in Southwest London.
Crabtree also emphasised the impact on victims, noting that they are “physically and emotionally” affected by these dangerous crimes. He warned that these incidents pose significant risks to young children, drivers, and passers-by.
Jon Radford, head of intelligence, investigations and data services at the Insurance Fraud Bureau, confirmed that “crash for cash” scams are a nationwide issue.
“We’re collaborating closely with insurers and the police to help bring these reckless insurance fraudsters to justice,” Radford said, adding that such scams should be reported to CheatLine.
