UK motorists are being warned about a sophisticated 'crash for cash' insurance scam that is putting drivers at a greater risk, particularly as winter road conditions worsen. The Insurance Fraud Bureau (IFB) has reported a significant rise in this fraud, where scammers on mopeds are stealing drivers' personal details to take out fraudulent insurance policies.
How the Moped Scam Operates
Organised criminal gangs are often behind these incidents. The scam typically involves a moped rider causing a minor collision or staging one. In the aftermath, they pressure the other driver into handing over documents like their driving licence or full insurance certificate, claiming it is necessary.
Once they photograph these documents on a mobile phone, the fraudsters then use the stolen personal information. Between summer 2024 and March of this year, more than 1,100 fraudulent motor insurance policies were taken out by scammers using details obtained from victims in this way.
The Scale of the Problem
The IFB believes the true scale of the fraud is even larger, with many instances going unreported. Looking at a broader timeframe, the problem is staggering. Over 4,000 people were targeted from June 2021 to July 2024, leading to fraudulent insurance claims worth an estimated total of £70 million.
John Davies, an intelligence and investigations manager at the IFB, emphasised the increased danger, stating: "As the nights draw in and road conditions worsen, drivers may be at greater risk of being targeted in reckless crash for cash scams."
How to Protect Yourself and Report Fraud
Authorities are urging the public to be vigilant. The City of London Police advises drivers to only provide the insurance information that is legally required after a collision. You should avoid sharing unnecessary information such as copies of your entire insurance policy.
If you suspect you have been targeted, it is crucial to:
- Collect as much information as possible, including the moped's make, model, and number plate.
- Get a description of the driver and details of any witnesses.
- Secure any dashcam footage.
- Immediately call your insurer and the police to report your suspicions.
The IFB also runs a confidential Cheatline service for reporting such incidents, providing a safe channel for the public to help tackle this crime.
