Latest statistics show continued rise in motor fraud

James Heath, Director of Counter-Fraud Strategy at Keoghs’ Solicitors highlights the recent statistics surrounding motor fraud such as crash for cash scams.

Figures released by the ABI show that motor fraud across personal and commercial lines continues to rise. Latest statistics reveal that insurers identified and prevented 42,700 dishonest claims valued at £614m during 2012. Keoghs' experience last year supports this, with £156m+ in savings being achieved by our Counter-Fraud Services division - a 26% increase on last year.

Whilst we continue to see a broad range of fraud types, commercial risks remain predominantly the victim of induced accidents - typically "slam on" incidents at roundabouts involving fraudsters braking sharply in front of another vehicle to cause a tail end collision.

Not only has the volume of such claims increased, but fraudsters are also evolving their approach to avoid detection. We are increasingly seeing new tactics such as the deployment of "decoy" vehicles, whereby the decoy(s) will cause a seemingly innocent and innocuous event that triggers the vehicle in front of the insured to slam-on, thereby inducing the collision. Typical tactics upon larger trunk roads include undertaking the claimant's vehicle and cutting in, or cutting across the vehicle in front to take an exit from the trunk road.

We also continue to see certain repeat locations for this type of activity, most notably:

  • A406 - Ilford, Barnet, Enfield locations

  • A41 Elstree and Hendon Way

  • A1081 - Airport Way, Luton

  • A10 / A406 junction

  • A312, The Parkway

  • A5 - A505 Dunstable / Luton

  • M1 Junction 11 - Dunstable Road

  • A329 Wokingham

  • A4 Bath Road, Slough

  • Oldham Road, Rochdale to Denshaw

  • Chamber Road, Oldham

  • Centenary Way, Trafford Park, Manchester

When operating in these areas, please be vigilant for the types of driving patterns detailed above and above all, if unfortunate enough to be involved in an incident accurately record:

  • Precise location

  • Third-party vehicle details

  • Vehicle damage

  • Personal details of all occupants (if possible check the vehicle for confirmation of passenger numbers)

It is important to record as much detail as possible when handling a claim to help identify other exposures within your claims portfolio and to assist in employing a more coordinated response - enabling us to defeat fraudulent claims efficiently and cost effectively.

For more information please contact:

James Heath, Director of Counter-Fraud Strategy, Keoghs
T: 024 7665 8625 E: jheath@keoghs.co.uk

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