“Crash for Cash” scams may fund “other serious organised crime” says MP – Thornton Heath among the “hotspots” says another

• Mums on the school run are particular targets
• Scams are constantly evolving, presenting numerous variations 
• Insurers need to do a thorough job of investigating opportunistic insurance fraud

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Crash for cash scams – incidents in which individuals deliberately stage or cause road traffic collisions for financial gain – may fund “other serious organised crime” says a south London MP.

Elliott Colburn’s warning came during a Westminster Hall debate where another south London MP, Dame Siobhain McDonagh, revealed she has also been a victim of the same scam -but had not realised it at the time.

News From Crystal Palace have previously highlighted the scam following comments on local social media.

Elliott Colburn told a Westminster Hall debate in Parliament:

• An investigation led by the IFB (Insurance Fraud Bureau), the City of London police, the IFED (Insurance Fraud Enforcement Department) and several insurers has found that 2,250 people in London alone have been the victim of such a scam in the past two years;
• Many of the suspected fraudsters are believed to be couriers delivering items such as takeaways; and that
• The IFB are currently investigating more than 6,000 suspected claims, estimated to be worth £70 million.

“So-called crash-for-cash insurance fraud is an issue that many of my constituents have brought to my attention in recent weeks and months” said Mr Colburn (Con, Carshalton and Wallington).

“Often perpetrators exaggerate injuries or falsely claim that additional passengers were involved in a collision, to increase their payouts.

“There are three principal types of crash-for-cash scams

• induced accidents, which involve fraudsters targeting an innocent motorist as the driver “at fault”, often by suddenly braking in front of their car to cause a crash;
• staged accidents, which involve fraudsters crashing their own vehicle or mimicking the damage of a crash by using tools such as sledgehammers; and
• fabricated accidents, which involve fraudsters submitting false claims for accidents which never occurred. The scams are constantly evolving, presenting numerous variations beyond the principal types.

“This is not a victimless crime. “It is not that the fraudster gets some money but no one is worse off. “Real people’s insurance premiums are going up, often by an amount which they cannot afford, and we absolutely must do something about it.”

But obtaining detailed statistics on crash-for-cash offences remains challenging, he said.

“Official crime statistics do not separately identify such offences. Instead, they are grouped under insurance-related fraud. “In 2023, approximately 13,700 offences were recorded in that category in England and Wales, and the IFB estimates that 69,500 personal injury claims are linked to crash-for-cash scams annually, costing the insurance industry nearly £400 billion.

“The IFED have investigated so-called crash-for-cash fraudsters. In September 2021, it secured convictions against three individuals who deliberately caused collisions which resulted in substantial damage and injuries.

“The fraudsters filed multiple personal injury claims totalling nearly £50,000, but thanks to CCTV footage and inconsistencies in their accounts, the insurer referred the case to the IFED, leading to custodial sentences ranging from nine to 20 months.

“In February 2022, similar convictions were secured against another three individuals who also staged a collision, with claims amounting to £48,000.”

Crash-for-cash fraudsters often target vulnerable drivers who are in a hurry or are unwilling to cause trouble, says Mr Colburn.

“I have heard about women in my constituency being particularly targeted for such frauds. “The scams harm all law-abiding motorists, increasing unnecessary work for the emergency services and the NHS, and causing innocent victims to lose their no-claims bonus and face rising premiums.

“The proceeds from the scams may go on to fund other serious organised crime. “Not only are such actions deceitful, but they are already illegal, falling under offences in the Fraud Act 2006 and the Road Traffic Act 1988.

Dame Siobhain McDonagh (Lab, Mitcham and Morden) said that, “in retrospect, I understand that I have been the victim of a crash-for-cash incident.

“About eight months ago, I was driving through Tooting on a residential road when a moped came out of nowhere, overtook me and stopped right in front of me. “I was not travelling very fast—it was a residential road—so I did an emergency stop and managed to avoid hitting the moped.

“Immediately, the driver dropped the moped and began to shout and point at me. “I pulled over to see that he was okay, but I was absolutely confused because I knew I had done no damage to his moped and that he too was not hurt in any way. “I just did not understand what was going on.

“He dragged me over, took my details and took photographs of me, of my car, which showed no signs of damage, and of his moped. “I gathered myself to take pictures of his moped and watched him drive off on it, and I thought no more of the incident.

“Then, some time later, I received a letter from a solicitor demanding large amounts of money because of the need for the driver to use a replacement vehicle.

“Not until a constituent came to my advice surgery and went on to describe exactly the same sort of case did I really understand what had happened, and I feel pretty stupid now. “My constituent, Ms T, told me she had spotted a stationary moped on a residential road. “Then, when she turned to exit a junction, the moped sped up and lightly tapped her car. “The driver then threw his bike to the floor and started shouting at her. “He immediately took photographs of Ms T’s car, but he fled the scene before she could take down any of his details.

“Lo and behold, she was then contacted by her insurers, who let her know that the driver had made a claim. “Only then did I realise that both my constituent and I were among the 170,000 people targeted every year by organised crime gangs as part of crash-for-cash scams.

“Since then, I have met representatives of Allianz and LV – insurers—not my own, I hasten to add—and learned that crash for cash is a slick operation that targets women: specifically women on the school run, as the hon. Member for Carshalton and Wallington said, because the gangs feel that they are less likely to put up a fight.

“That was the experience of Ms T, who was driving near a school at 10 am when the incident happened, and it is the experience of four in 10 people who fall victim to this. “There also seem to be hotspots, with criminals targeting the outskirts of major cities and, specifically in south-west London, “Thornton Heath, which, although it is part of Croydon, abuts my own constituency.

“We need insurers to do a thorough job of investigating opportunistic insurance fraud and to let constituents know that they may have been a victim. “In my own case, when I gathered myself and realised what had happened, I sent my insurers photographs and the short video.

“I said that I thought that I had been the victim of a scam. “My insurers wrote back to say that I would need to go to court and there was only a 50:50 chance of my being successful.”

“Finally, we need much more public awareness so that potential victims know how to look out for the scammers. “If drivers know the signs of an unfazed driver with pre-written insurance information, they can let the police know and stop this at source. “It might seem like a trivial issue, but it is a business worth £392 million a year and all our constituents will be better off if we can stamp it out.”

Other points from the debate:

Alison Thewliss (SNP) (Glasgow Central) said that in preparing for the debate she found out that Glasgow is sixth in the league table of places for crash-for-cash claims – although it was not something her constituents had raised with her yet.

Responding on behalf of the Government, Security minister Tom Tugendhat said members might think it unusual that fraud, or even crash fraud like this, was part of his brief.

“I usually spend my time wondering what different foreign agents may be trying to do in the United Kingdom or, indeed, what hostile states may be trying to steal off us—and they may question the connection.

“But as hon. Members have correctly said, the connections are clear: criminals use fraud to raise cash to exchange with agents of hostile states. “Effectively, the connection between hostile states, serious and organised crime, and people trafficking and fraud is all too clear.

“I should be clear this that does not mean that every group is connected in all parts. “Sadly, or rather happily, many groups are not connected and are simply small ventures by individuals who are trying to exploit something that they may have been told about by somebody else.

“Therefore, they are simply copycat cases. “We should not exaggerate too much, but keep that in perspective.

“The truth is that there are serious challenges.”

Mr Colburn, respoonding, said:

South-west London has been a target for organised crime gangs seeking to scam constituents in both of our patches, so this is a much-needed debate. The more attention we give the issue, the less likely our constituents are to be the victims of an insurance fraud.

• The Insurance Fraud Bureau, a not-for-profit organisation established in 2006, focuses on preventing and detecting such organised fraud. It supports the insurance industry and law enforcement by providing intelligence and assisting in investigations. It also attempts to raise public awareness about insurance fraud scams and educate consumers on how to identify and avoid  them. In 2023, the IFB managed more than 150 live operations, valued at about £90 million, and referred 52 cases to the police. It received more than 5,000 reports through its CheatLine, with 68 per cent resulting in actionable intelligence. Currently, it has about 6,000 active crash-for-cash investigations, worth more than £70 million. That represents about 30 pc of all its live operations.
• The Insurance Fraud Enforcement Department, which does great work to detect organised fraud, puts research into action. It is a specialised police force established in 2012, funded by the Association of British Insurers and dedicated to tackling insurance fraud. Hosted by the City of London police, the UK’s lead force for economic crime, the IFED operates independently while collaborating closely with insurance companies. Since its inception, it has investigated fraud valued at £360 million, made more than 3,230 arrests and secured more than 2,200 convictions, resulting in nearly 320 years of prison time. (Source: Hansard)

Further reading (This website):

MOPEDS ‘CRASH FOR CASH’ SCAM WARNING MORE ‘CRASH FOR CASH’ MOPED SCAMS EXPOSED