MP to take on 'crash for cash' crooks
SOUTH NORFOLK MP Richard Bacon has highlighted the targeting of women and vulnerable people as part of a growing epidemic of fraudulent 'car accidents', now thought to be worth several hundred millions of pounds per year.
Mr Bacon raised the issue in a debate in the House of Commons.
More than 22,000 such “accidents” have taken place since 1999, according to the Insurance Fraud Bureau. So–called “crash for cash” fraudsters perform dangerous manoeuvres to cause accidents deliberately, receiving up to £30,000 a time in insurance pay-outs if undetected. The Bureau estimates that on present trends there will be a further 20,000 crashes in the next 18 months. Women driving alone and mothers with children are believed to be in particular danger and are targeted because fraudsters think they are more likely to admit liability after an accident.
Rapid growth
In 2003, insurers were aware of just 4 gangs
operating this scam. By November 2006, this had grown to 40 gangs,
with an average of 3 new gangs being detected every month. Insurers
have also obtained intelligence which indicates that the largest and
most prolific gang in the North East is effectively selling
‘franchises’ on this fraud to other organised criminal gangs,
providing support with set up and driver training.
Mr Bacon said: “So-called ‘crash for cash’ scams are putting innocent drivers in danger, particularly women driving alone and with children. This evil activity is also providing many millions of pounds to invest in organised crime, including drugs trafficking, terrorism, money laundering, people trafficking and benefits fraud”.
“Unfortunately, because the government has made insurance fraud a low priority for the police, the problem continues to grow almost unchecked. This scam has now become so profitable that some criminals are franchising it out to other gangs”.
“As the scale of this fraud grows, so does the risk of fatalities. Money from the scam is also fuelling organised crime. I will be asking ministers to take action to protect the public and to stamp out this highly dangerous fraud”.
16 January 2007
Induced car crashes are caused by fraudsters obtaining motor vehicles and effectively forcing innocent members of the public to crash into them. For example, they:
By forcing victims to crash into them from behind, under current insurance law fraudsters can rely on a virtually automatic admission of liability by the victim’s insurers. They then submit multiple claims (injury, loss of earnings etc) for the driver and multiple fictitious passengers. Innocent members of the public are known to have been injured in these “car accidents”, including broken limbs and crushed rib cages.
The most advanced form of this fraud (enabling very high volumes of crashes to be initiated in a relatively short time frame) has been perfected by a criminal gang operating in a major city in the North East of England. To date insurers have linked over 500 induced motor accidents to the activities of this gang, committed in a period of 18 months. Over the last 12 months, copycat induced accident gangs have set up operation in many UK cities.
The multi-million pound fraud is now fuelling the growth of other organised crime. Insurers such as Norwich Union in its 2005 Fraud Report have uncovered close links between many of these induced accident fraud gangs and other areas of organised crime, including drugs trafficking, terrorism, people trafficking, benefits fraud and money laundering.
See also:
SPEECHES: Induced Car Crashes
|
|
