- 29 January is Crash for Cash Awareness Day - the day motorists are statistically most likely to be hit by a crash-for-cash scam
- Cash-for-crash scams cost an estimated £340 million per year
- FirstGroup has successfully defended millions of pounds of fraudulent claims
Transport operator FirstGroup is supporting a national campaign to help combat the proliferation of ‘crash-for-cash’ insurance scams.
The Insurance Fraud Bureau (IFB) has revealed that 29 January is the day in which road users are most likely to be targeted by a crash-for-cash fraudster*.
In crash-for-cash scams, fraudsters often drive erratically, unnecessarily braking to cause a collision with the vehicle behind.
In launching Crash for Cash Awareness Day, the IFB aims to highlight the issue and ensure motorists take extra care on the roads.
The IFB estimates that crash-for-cash scams cost £340 million every year while putting the lives of innocent motorists at risk.
Simon Robinson, Head of Claims at FirstGroup, said: “We have had a great deal of success in identifying and defeating crash-for-cash fraud, saving millions of pounds every year. Even with those successes, we do not believe that the war is won. We continue to deploy expert investigators and the latest technology at our disposal, such as CCTV, telematics and analytical software, to continue the fight.”
“These scammers needlessly risk the lives of others, purely for financial gain. The safety of our passengers, and our drivers, is the number one priority, which is why we are determined to come down hard on the perpetrators. We will never hesitate to take these cases all the way to court.”
One of FirstGroup’s largest crash for cash investigations took place in 2015, when a large gang of fraudsters targeted the company’s buses in Cheshire.
The gang, who were eventually jailed, staged collisions allowing more than 200 people to file personal injury claims valued in excess of £1.7m. Subsequently, no compensation was paid by FirstGroup.
FirstGroup’s in house claims team are currently investigating several suspected crash-for-cash scams, some of which are valued at more than £100,000.
Ben Fletcher, Director of the IFB, said: “Crash for Cash Awareness Day raises awareness amongst the general public about this potentially lethal crime. While the hotspots data highlighted the worst affected areas, crash for cash is a nationwide problem. At the IFB, we work hard to detect organised insurance fraud, often leading to custodial sentences for these dangerous fraudsters.”
Notes to editors
* Methodology: Using sophisticated analytics, IFB analysed more than 2,000 claims linked to 40 IFB investigations relating to induced crash for cash incidents. From this data, they were able to identify the most common date on which these incidents occurred.