Police across London have started cracking down on a growing car insurance fraud scheme which has been putting road users at risk.
The City of London Police’s Insurance Fraud Enforcement Department has issued several warrants across the capital in a bid to tackle the crash for cash schemes.
Earlier this month, officers carried out five warrants at two residential addresses and four garages located in East and South London, which were found to be complicit in insurance fraud.
The operation was supported by partners, including the Metropolitan Police Service Motorcycle Safety Team, Home Office Immigration Enforcement, the Insurance Fraud Bureau, and the DVSA.
CITY OF LONDON POLICE
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The main suspect, who was believed to be orchestrating the "crash for cash", was arrested with key digital devices which could contain evidence of staged collisions.
Three confirmed stolen motorcycles were also recovered from the garage premises, one of which had already been restored.
Several other bikes identified by IFB were found to feature in multiple staged collisions, highlighting the scale of the suspected fraud.
IFED officers, in collaboration with the Home Office Immigration, also arrested two individuals who were later detained over suspected fraudulent practices.
CITY OF LONDON POLICE
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Detective Chief Inspector Nik Jethwa from City of London Police’s Insurance Fraud Enforcement Department said: "Crash for cash fraud isn’t just a financial crime, it’s a dangerous tactic that puts innocent people directly in harm’s way.
"These staged collisions can lead to real injuries and even fatalities, and the criminals behind them show complete disregard for public safety in pursuit of illicit gain."
He explained that the police remain relentless in pursuing offenders and will continue working closely with enforcement and industry partners to target networks and "bring those responsible to justice".
Jethwa stated that the operation is a "clear example of the power of joint working to dismantle organised fraud".
"We want to send a strong message: the safety of the public comes first, and there is no place to hide for those who seek to exploit and endanger others through insurance fraud," he added.
According to the Association of British Insurers, there are three types of crash for cash schemes. The first is a staged accident involving fraudsters crashing their own vehicles together or mimicking damage from a genuine crash.
The induced accident sees fraudsters target an innocent motorist to become the "at-fault driver", for example, by deliberately slamming on the brakes of their car to ensure the car behind crashes into them.
The final case is known as the "ghost" accident, where fraudsters submit completely fabricated claims for accidents which never actually took place.
CITY OF LONDON POLICE
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The ABI shared: "Crash for cash fraudsters often target vulnerable drivers, who are under time pressure or do not want to cause any trouble.
"Ultimately, fraudsters harm all law-abiding motorists: beyond the obvious safety implications, they cause unnecessary work for emergency services and the NHS, and innocent victims of induced accidents can lose their no-claims bonus and may see their premiums rise following an ‘accident.’"
Last year, two men were sentenced for an unsuccessful fraudulent scheme which could have cost LV= General Insurance £102,827.
Two of the men were found to have deliberately staged a collision between two cars, including an Aston Martin that they claimed was worth roughly £60,000, and went on to submit claims on insurance.