The hotspots analysis confirms Birmingham remains the most prevalent area in the UK for the dangerous scam, followed by postcodes in Bradford, Manchester, London and Luton.
The Insurance Fraud Bureau (IFB) has today released new figures that confirm the UK’s top 30 worst-affected postal districts for ‘Crash for Cash’ scams.
‘Crash for Cash’ is a common insurance scam which sees fraudsters invent or deliberately cause road traffic collisions, often involving innocent people, to try and get compensation.
A number of postcodes in Birmingham made it to the top of the list. B25, B34, B8, B27 are top ten high risk postcodes.
Other postcodes included B27, B33, B11, B28.
The hotspots analysis confirms Birmingham remains the most prevalent area in the UK for the dangerous scam, followed by postcodes in Bradford, Manchester, London and Luton.
IFB analysis of 2.7 million motor insurance claims made across the UK in between 1/10/2019 to 31/12/2020 has identified over 170,000 claims which could be linked to suspected ‘Crash for Cash’ networks.
‘Crash for Cash’ scams can range from paper-based fabrications, or vehicles being damaged behind closed doors, through to the most dangerous where collisions are being caused by fraudsters with innocent road users.
IFB investigations have found single gangs can be behind thousands of orchestrated collisions in some areas, with the combined value of their fraudulent claims running into the millions.
In the top hotspot area of Birmingham, the IFB recently worked with City of London Police’s Insurance Fraud Enforcement Department (IFED) to convict a serial ‘Crash for Cash’ fraudster who had spent over two years luring innocent people into car crashes.
Yardley (B25), Shard End (B34), Saltley (B8), Acocks Green (B27), Lea Hall and Stechford (B33), Sparkhill and Tyseley (B11), Hall Green (B28) were the worst areas in the entire country.
Ben Fletcher, Director at the IFB, said:
“Crash for Cash’ fraudsters bring devastation to countless victims and increase motor insurance costs for us all. The IFB’s hotspots analysis is a stark reminder that although great strides have been taken in tackling the problem, these car crash scams are all too common.”
“As traffic levels return to normal following the national lockdown, ‘Crash for Cash’ fraudsters may look to make up for lost time. It is hoped that by shining a spotlight on the issue we will encourage road users to be alert and report any suspicious activity to the IFB’s Cheatline on 0800 422 0421.”
It is hoped that the announcement of the UK’s top ‘Crash for Cash’ hotspots will encourage communities to be vigilant as more drivers start to take to the roads.
Freddie Lovejoy, an LV= General Insurance customer, fell victim to a ‘Crash for Cash’ after his Land Rover was induced into a collision on the A1. A court case was successfully fought after the fraudsters attempted to claim for compensation. He said:
“You never expect a crime like ‘Crash for Cash’ to happen until it does, and I would strongly recommend drivers read up about it. There can be physical and mental impacts when involved in a car incident, and to think criminals do it on purpose is scary.”
“At the time I was using a dashcam which provided crucial evidence for the case, so that would be my top tip to anyone. I was lucky to get support and justice, but others might not be so fortunate, so creating more awareness for the public is important.”