Beware of scam ‘accidents’
One of the latest epidemics that the UK is going to face over the next few years is that of ‘fake’ accidents and
accident claims which are staged and deliberately set up to make money off car insurance policies.
The warning comes courtesy of The Insurance Fraud Bureau (IFB) who believe that there may be as many as 400 criminal networks in the country planning car crash related insurance scams.The bureau estimates that there have been 20,000 fake accidents over the past seven years and fears a further 20,000 may take place in just the next 18 months alone.
The scam is being perpetrated by fraudsters who are setting up situations where you hit them, opening you and your insurer up to large bills for crash repairs and injuries compensation. Scammers are picking the approach to a busy junction or roundabout as their playground to dupe unsuspecting drivers; their plan is to drive in front of you normally towards the link of traffic and then jam on the brakes unnecessarily, causing the scam victim to crash into the back of them. The car in front may even have an accomplice vehicle which pretends to brake hard further ahead.The car you impact may often be an older model or a van, and it may not even have functioning brake lights to give you even less warning.
The worst point about the scams is that the ‘victim’ can always claim for whiplash which is medically hard to disprove, and although the payoff may be relatively small on a one to one basis, if the scammers are networking incidents then they can rake up a hefty profit in a short space of time.
Worryingly, the new bureau fears that the frauds have a high degree of sophistication, involving associates such as lawyers, doctors and garage mechanics to assist in the scam. If you are a driver then there measures you can take to protect yourself from this type of scam. For instance, if you feel that another vehicle is following you or driving erratically in front of you, particularly as you approach a roundabout or road junction, then drive defensively, giving the vehicle as much space as possible.
If you are unlucky enough to be tricked by the fraudster then do not neglect to arm yourself with as much information for the next phase of insurance documents, lawyers and paperwork. Take the pre-emptive step to counter the fraudster’s plans. In the event that you are involved in an accident and are suspicious of the circumstances, record as much detail as possible at the scene.
If possible use a disposable camera or mobile phone to take photographs of the car, drivers, passengers and accident situation from every angle, and obtain the full details (names, addresses) of everyone in the vehicles involved in the accident. Also, don’t forget to get the names and addresses of any witnesses – they can often offer valuable information which helps in the investigation of the claims.
Updated on 24/06/2008