The campaign is a joint venture between the Insurance Fraud Bureau (IFB) and the Association of British Insurers. It aims to help the public spot signs of scams and report them to the IFB’s Cheatline.
In 2019, fraudulent insurance claims rose by 5%, with many being linked to dangerous scams. There are concerns that the current economic climate (attributed to the impact of Covid-19) could result in a rise in fraudulent insurance claims as it did following the 2008 recession when claims increased by 17%.
With at least one insurance scam happening every minute in the UK, the cost to honest consumers is over £3 billion a year.
The campaign highlights a number of common insurance scams:
A compensation scam is where fraudsters contact someone to tell them they may be entitled to compensation. If convinced, the unwitting victim hands over personal details which enable the fraudsters to steal their identity or bank funds. They may also be encouraged to take out a fraudulent insurance claim. These scammers may target those out of work or who have lost money due to the disruption of Covid-19 by offering to recover financial losses incurred because of the pandemic.
‘Ghost Broker’ scams
‘Ghost Broker’ fraudsters are known for selling fake car insurance by posing as an insurance provider to target those struggling financially with unrealistically cheap fraudulent insurance deals on social media.
‘Crash for Cash’ scams
One in every ten injury claims for a motor collision is linked to a suspected ‘Crash for Cash’ incident where a fraudster intentionally drives dangerously (slamming on their brakes with a car close behind, for example) to cause an innocent motorist to crash into them so they can claim for compensation.
Help fight fraud
Report insurance fraud confidentially to CheatLine via their website or by calling 0800 422 0421 to protect yourself and others from fraudsters.
Can we help?
Our private investigators are highly experienced in fraud investigations.
Contact us on 01392 278612 to discuss your fraud investigation needs.