Crash for Cash Scams
As if just driving down the road weren't risky enough, fraudsters who stage traffic accidents for money in so-called 'crash for cash' scams are increasingly making innocent motorists' lives a misery. We explain what's going on and what you can do to avoid being their next victim.
What is a crash for cash scam?
It's when a criminal stages a vehicle accident or incident involving an innocent motorist to make them appear at fault, allowing the criminal to claim on their insurance policy, often for personal injury compensation. Insurers and the police call them 'induced accidents' as distinct from 'staged accidents' involving only the criminals and 'ghost accidents' which are entirely fictitious.
What induced accidents do the fraudsters carry out?
They're typically the sort of low-speed accident likely to win compensation but without causing the fraudster any serious injury. They include being hit by an innocent motorist from behind, for example at a junction or a roundabout, and being hit because the other driver misjudged the distance between both cars.
The fraudsters may cause these 'accidents' by suddenly braking or waving or flashing the motorist (also called 'flash for cash') to proceed before then driving into them. Fraudsters generally target elderly or vulnerable drivers and strike at lunchtimes and the afternoon school run.
What is 'clip for cash'?
This is when a fraudster throws an object at an innocent motorist's car, usually when it is slow moving in a residential road. Their aim is to persuade the motorist that the noise they heard was their car clipping the fraudster's wing mirror and shows them the part (already damaged) to prove it. Another scam involves the fraudster opening their car door on a car as it passes. In both frauds, the criminal will demand cash compensation to cover the repair of their vehicle.
What 'injuries' can fraudsters claim compensation for?
They include cuts and bruises, and head and back injuries. Whiplash is another although in 2021 the amount motorists could claim was reduced. Even so, for a whiplash injury lasting between six to nine months, the sufferer can still expect to receive £840. However, insurers reckon some fraudsters are pocketing up to £20,000 while those prepared to risk everything can win hundreds of thousands of pounds. Psychological symptoms, including PTSD, can also be claimed for. In addition, the fraudster may claim for loss of earnings, and for car hire and vehicle recovery costs. The AA estimates fraudulent claims add around £50 to every motorist's insurance premium.
How long have these scams been going on?
In 2023 a gang in Wales was convicted of scams going as far back as 2002. London police first detected 'clip for cash' scams in 2021 and the practice has since spread to other parts of the UK.
What has caused the recent rise in crash for cash scams?
In recent years a scam involving mopeds and scooters has emerged. It usually involves a moped rider 'crashing' into an open car door or waving a driver across a junction, only for an accomplice on another moped to suddenly appear and crash into them. This accomplice may emerge from behind a van driven by another partner in the scam or from the side of other cars. Given a fraudster's vulnerability on a moped, impact speeds are usually quite low.
Insurer Allianz says that during 2023 claims relating to this scam increased by 6,000% compared with 50% in 2022. More than half the 'accidents' happened in London and surrounding boroughs. According to the Insurance Fraud Bureau (IFB), in the period 2021-2023, 2,250 drivers in London were victims of 'crash for cash' bike riders with many of the suspected fraudsters being couriers.
In the past six months in Wallington, Surrey, at least 20 people in a WhatsApp group created to share experiences of the scam claim to have been the victims of induced moped crashes. As the gangs move farther afield to cities including Birmingham, Bradford, Manchester and Oldham, the IFB believes thousands of motorists have been victims without realising and estimates the value of bogus moped and scooter claims now exceeds £27 million.
What's being done to stamp out the crimes?
In London the police are working with Trading Standards officers to identify rogue businesses repairing damaged mopeds and scooters. In June a combined operation led to the seizure of mopeds believed to have been used in crashes and hundreds of numberplates used to disguise bikes. The police say their efforts are leading them to other gangs and businesses involved in the scams elsewhere in the UK.
How do you spot a crash for cash fraudster?
Signs include the fraudster being unusually calm and already prepared with their insurance details. They may limp or hold their arm in an exaggerated way and if there are passengers in the fraudster's car they, too, will also claim to have suffered whiplash or other injuries. The fraudster may suggest you pay them cash compensation to avoid involving your insurer but will then probably make a claim anyway.
How do you avoid being the victim of a crash for cash scam?
West Yorkshire Police has issued the following guidance:
- Keep your distance from vehicles ahead of you.
- Be vigilant, looking for signs of vehicle occupants ahead of you appearing to look at your car – they may be deciding when is best to slam on their brakes.
- Beware of a slow-moving car ahead of you that suddenly speeds up – the driver may be tempting you to speed up before they suddenly brake.
- Don't automatically obey a driver or bike rider who is signalling or flashing you to move but instead wait and assess the situation.
What should you do in the wake of the 'accident'?
Whatever your suspicions, don't challenge the driver or rider. Instead, you should take their name, address and insurance details. Do not admit liability. Try to get witnesses' statements, although those keen to provide them may be accomplices. Gather as much evidence of the scene as possible. Any dashcam footage you have will be very helpful. Don't offer to settle the matter with a cash payment. Contact your insurer and call the Insurance Fraud Bureau's Cheatline 0800 422 0421.
