Spurious road traffic accidents—where criminals aim to profit from fraudulent insurance claims—are not new events. These accidents, classified as “crash-for-cash” scams, can include fabricated personal injury claims following minor accidents and intentional collisions.
The latest crash-for-cash fraud trend involves delivery moped drivers deliberately crashing into oncoming traffic for compensation. In fact, in London alone, approximately 2,250 people have fallen victim to this type of scam in the past two years, according to the Insurance Fraud Bureau.
Therefore, it’s crucial for you to understand crash-for-cash scams and know how to avoid and respond to them.
Types of Crash-for-Cash Scams Explained
The Association of British Insurers identifies three main types of crash-for-cash scams:
- The staged accident—A fraudster and an accomplice crash their vehicles together or intentionally damage them in other ways.
- The induced accident—Scammers induce innocent motorists into specific collision types and frame them as the “at-fault” driver.
- The ghost accident—Fraudsters submit fabricated claims about accidents that never occurred.
Unfortunately, commercial drivers like you could be an attractive target for induced accident scams in particular due to the likelihood of having more comprehensive coverage types through their employers, which fraudsters can prey on. As such, it’s critical that anyone who drives a vehicle for work purposes knows how to avoid a crash for-cash event as well as what to do in the event of such a scam.