A new report from Direct Line Group (DLG) indicates that organised crime rings account for 40% of motor insurance fraud in 2024, a significant jump from 25% in 2023. The findings point to increasingly sophisticated schemes, placing motorists and insurers on high alert as fraud levels escalate.
According to DLG’s counter-fraud team, third-party actors are responsible for a staggering 92% of motor fraud cases, a trend consistent from 2023 into 2024. The impact is far-reaching, adding roughly £50 to the cost of a typical motor insurance policy, according to Association of British Insurers data.
Fraudulent tactics often involve staged accidents or exaggerated injury claims aimed at securing undeserved insurance payouts. Non-existent injury claims alone constitute nearly a third (29%) of all fraudulent motor claims, while cash-for-crash incidents and ghost-broking scams (selling invalid insurance) make up about 11% and 10% of fraud cases, respectively.
A DLG survey, conducted with 2,000 UK adults through Opinium, highlights driver anxiety around the issue. Two out of five drivers (43%) fear they may become targets of intentional vehicle collisions or fake accidents designed to trigger insurance claims.
The concern is notably higher in London, the North West, and East Midlands, where incidents of cash-for-crash scams are said to be common. The worry among drivers has intensified, with 41% feeling more anxious about staged accidents compared to the previous year.
A particularly concerning development is the surge in fraudulent moped accidents, which spiked by 380% year over year. These incidents involve fraudsters using mopeds to stage collisions with unsuspecting drivers in high-traffic areas, hoping to exploit the chaos for insurance claims.
In response, DLG has launched the “Fraud Fighters” campaign, offering tips and resources to help drivers avoid becoming fraud victims.
Chief executive Adam Winslow (pictured) noted: “Organised criminal gangs are committing motor fraud at a scale never seen before. It drives up costs and endangers lives, impacting all law-abiding drivers. The real impact isn’t just the scam – it’s the emotional and financial price honest consumers pay. There is an epidemic of criminals committing insurance fraud in this country.”
“DLG invests heavily in counter-fraud to prevent, detect, and support the prosecution of criminals. We monitor the channels and platforms where fraud is taking place and use our intelligence services to protect the public, partnering with law enforcement and port authorities.”
The CEO said greater collaboration and intervention from the public and private sectors is needed amid worsening numbers related to organised crime insurance fraud.
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