Birmingham has been named as the most prevalent area in the UK for ‘crash for cash’ scams according to new figures released by the Insurance Fraud Bureau (IFB).
A crash-for-cash incident is an insurance scam where fraudsters deliberately get involved in traffic collisions with the aim of obtaining financial compensation from another party.
The study found that Birmingham’s postcodes B25, B34 and B8 were the top three high-risk areas, while Bradford’s BD7 and BD3 districts completed the top five.
The IFB has analyzed 2.7 million car insurance claims made across the UK in the past 15 months and has found over 170,000 that could be linked to suspected incidents of ‘crash for cash’ ‘.
Birmingham, Bradford, Manchester, London and Luton postcodes have been seen as hot spots for the scam, which can range from fraudulent paperwork and damaged vehicles behind closed doors to intentional road collisions with innocent drivers.
The IFB says gangs have been behind thousands of cash incidents, making millions of pounds through fraudulent claims.
“These criminal gangs are often very organized and put lives at risk. The amounts they fraudulently claim can be huge and can impact the auto premiums paid by honest motorists, ”said James Dalton, director of general insurance at the Association of British Insurers.
“With more vehicles on the roads as we break out of pandemic restrictions, the potential targets for these criminals are increasing. This is why it is so important that all motorists are on their guard. ”
Induced car collisions at roundabouts and busy intersections are common crash-for-cash technical. The IFB advises drivers to keep a safe distance in traffic and to remain alert to any unusual driving behavior to avoid collisions.
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Source: www.autocar.co.uk
This notice was published: 2021-05-11 11:51:58