A new study from the Association of British Insurers (ABI) revealed that a significant number of individuals remain unaware of “ad spoofing,” a method used by fraudsters to deceive people who have experienced road traffic accidents into using illegitimate websites.
According to the survey, 81% of respondents who were aware of insurance fraud had never heard of this tactic.
ABI conducted this research to gauge customer awareness of insurance fraud amid rising cybercrime. The study revealed that nearly one-third (31%) of UK adults were unfamiliar with online insurance fraud, prompting the ABI to initiate a new campaign.
The ABI tested participants' ability to distinguish between real and fake insurance advertisements, with about half struggling to identify authentic ads.
The survey further highlighted a lack of knowledge about specific types of online insurance fraud. 69% of respondents were unaware of investment fraud, where fraudsters mimic legitimate providers to sell non-existent products.
Almost four in five (78%), meanwhile, had not heard of data farming, which involves direct marketing or cold calls to encourage fraudulent claims. 81% were unaware of account takeovers, where scammers misdirect premium refunds or claim payments. Additionally, 90% were unfamiliar with ghost broking, a tactic used to sell fraudulent insurance policies.
Read More: ABI releases Premium Finance Principles
Mark Allen, ABI's head of fraud and financial crime, emphasised the importance of awareness in combatting online fraud.
“At a time when household budgets are already being squeezed by the cost of living, no one wants to get caught out by the scammers. From deals that look too good to be true, to opportunistic claims companies praying on people when they’re at their most vulnerable, we’re calling on everyone to be alert and don’t fall foul of the fraudsters,” Allen said.
Ursula Jallow, director at the Insurance Fraud Bureau (IFB), also highlighted the sophistication of online scams.
“Online insurance scams are widespread and are becoming increasingly sophisticated, so it's really important to stay cyber savvy and know the difference between a real deal and one that shows signs of something not being quite right. This campaign is shining a spotlight on some of the most devastating scams out there, so we encourage everyone to follow ABI’s tips to avoid being targeted. If anyone thinks they have seen an insurance scam they can report it to our confidential CheatLine,” Jallow said.
The ABI's new campaign aims to educate consumers on identifying and avoiding online fraud through case studies, digital advertisements, and collaborations with influencers. This effort seeks to arm consumers with the knowledge to protect themselves from scammers using the internet to perpetrate fraud.
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