The shocking truth of “Crash for Cash” scams

Posted 21/02/2013

New research published by the Insurance Fraud Bureau (IFB) reveals that one in seven personal injury claims are linked to “Crash for Cash” scams, costing UK policyholders almost £400 million every year.The scams are run by highly organised gangs that deliberately cause crashes with innocent motorists, faking accidents to make fraudulent insurance claims. The pay outs that cover personal injury, loss of earnings and other expenses are collectively pushing up premiums across the UK.There have been a number of high profile cases in the media over the last couple of weeks involving insurance fraud and “crash for cash” scams, including the tragic case involving Miss Gill who was fatally injured when she was unwittingly caught up in such a scam.According to the IFB, profits from these scams are being used to fund other crimes in the UK, including drug dealing and people trafficking. The IFB’s research also revealed the shocking figure that one in twelve people would consider taking part in a scam.One should not, however, lose sight of the fact that on the insurers’ own statistics it is very much a tiny minority who actually make and then pursue fraudulent accident claims – the vast majority of the claims are brought by innocent claimants who are pursuing perfectly legitimate insurance claims.Indeed, one survey revealed that almost 40% of people who suffered a “whiplash” injury, have never made a claim for it.Tom Ranson of Ashtons Legal injury services says: “Fraud is not a victimless crime. The fight against fraud must be a shared one, across the board. Indeed, this has been reflected in the recent high profile cases which have come before our criminal courts. We must all continue to be vigilant and fraud should be stamped out wherever it is found. At Ashtons Legal we pride ourselves on maintaining excellent standards, not only in relation to our client care but also in relation to taking responsibility for our role and the role of our clients within the claim process.”