‘Be careful and aware’: After the lockdown is lifted, an increase in ‘crash for cash’ frauds is expected.
EXPERTS have warned that once the coronavirus lockdown limitations are loosened, new “crash for pay” scams will emerge.
More induced road collisions are likely in the weeks and months following Freedom Day, according to Ageas Insurance. When the first nationwide lockdown was removed in 2020, the number of cases increased by 150 percent, according to Ageas Insurance.
When a fraudster orchestrates an encounter with an innocent victim in order to generate a claim, this is known as an induced collision.
This occurs when a driver intentionally brakes in front of another, causing them to collide with their vehicle.
According to the Insurance Fraud Bureau, induced road crashes or “crash for pay” frauds are most common in Birmingham (IFB).
The IFB published a list of scam hotspots, with Leicester, Coventry, Nottingham, Sheffield, and London all showing a high prevalence of the scam.
Ageas Insurance’s Claims Director, Robin Challand, stated that drivers should be aware of the danger.
“Lockdowns made it more difficult for Crash 4 Cash scammers to operate because there was less traffic on the road, making it more difficult to conceal their actions,” he claimed.
“However, as limits are eased and road usage returns to more regular levels, we see these crooks re-emerge and endanger innocent motorists by causing accidents.
“We’re advising drivers to be cautious and aware of some of the warning signals of a scam.
“We’ve heard of cases where scammers are rather forceful after an accident, no doubt trying intimidate the victim and deceive them into acting so rapidly that they don’t have time to evaluate what has just happened.”
Other symptoms include the other driver behaving strangely, including abrupt braking, and exaggerating their injuries following the collision.
Birmingham had four of the top ten most high-risk postcodes for “crash for cash” frauds, accounting for three of the top three.
Bradford accounted for three of the top ten spots, while Walsall, Blackburn, and Romford also made an appearance.
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Between October 2019 and December 2020, the IFB examined 2.7 million auto insurance claims across the UK and discovered.