Interactive Driving Systems (IDS) has updated and re-circulated a warning about crash for cash scams, as the issue and risks from fraudulent motor claims appear to be as relevant as ever – particularly for liveried vehicles.

The following good practice tips to avoid becoming a victim are based on an insurance guidance, aimed to reduce claim claims costs and premium inflation – and IDS recommends you spend some time focusing on this issue in collaboration with your insurer and broker.

Induced collision fraud represents a serious threat to public safety, estimated to cost hundreds of million pounds per year by UK insurers.

Gang members either purchase and insure low value vehicles or use hired vehicles, and then force innocent members of the public and fleet vehicles to crash into them.

By ‘inducing’ an innocent driver to collide with them, the fraudsters can rely on a highly positive chance of the acceptance of insurance liability. Multiple claims are subsequently submitted for the driver and (often fictitious) passengers. According to insurers, who continue to work hard to mitigate this risk, the average insurance bill per induced collision is £25-30,000.

Common methods of inducing crashes

1. Roundabouting: A fraudster disconnects their brake lights and drives around busy roundabouts/slip roads looking for victims. Once a victim is selected, the fraudster drives 2-3 metres in front of target and breaks sharply (sometimes an accomplice in another vehicle will distract the victim, with their horn or flashing headlamps, to help facilitate the crash).

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