Motor Insurance 'Crash for Cash' Fraud

Insurance Fraud - Key Facts Booklet PDF Doc.

News Release
7th March 2008
West Yorkshire Police Charge ‘Crash for Cash’ Fraudsters

Tuesday 4th March - West Yorkshire Police have charged 3 individuals in the ongoing inquiry into ‘crash for cash’ scams in conjunction with the Insurance Fraud Bureau (IFB). Investigators from the (IFB) have worked closely with Keighley Police over the last ten months on Operation Pelican, investigating alleged false motor accident claims involving hundreds of thousands of pounds.

During the inquiry twenty two people have been arrested. A thirty seven year old male from the Keighley area has been charged with conspiracy to defraud insurance companies, conspiracy to pervert the course of justice and the intimidation of witnesses. A thirty-six year old female from the Keighley area has been charged with conspiracy to defraud insurance companies. A fifty-seven year old male from the Huddersfield area of West Yorkshire, a self-employed vehicle examiner, has been charged with conspiracy to pervert the course of justice and conspiracy to defraud insurance companies. All 3 individuals charged are to appear at Bingley Magistrates Court on March 13th. A further sixteen people have received police cautions for minor fraud offences and 3 individuals have been eliminated from inquiries.

Detective Inspector John Mountain, West Yorkshire Police comments: “Innocent policy holders are paying for this kind of crime. Fraud increases the average premium by 5% or around £40. We will continue to work closely with the Insurance Fraud Bureau and take a robust stance in targeting and disrupting the criminal gangs preying on innocent motorists and the insurance industry.”

John Beadle, Chairman of the IFB said: “The insurance industry is no longer an easy touch for these organised fraudsters. We will continue to work closely with West Yorkshire Police and are delighted with the results achieved to date via this ongoing inquiry. We know these criminal gangs affect honest motorists in a number of different ways and are ruthless. Through our partnership approach with the Police we will continue to find, expose and pursue those criminals involved in organised insurance fraud.”

The IFB runs a free and confidential helpline which members of the public are urged to call if they have any information on staged motor accidents or other types of insurance fraud. The number is 0800 328 2550.
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Notes to Editors:
‘Cash for crash’ scams involve offenders staging or contriving collisions between themselves or inducing innocent motorists into having collisions with the purpose of making a claim on the innocent motorist’s insurer, often including several accounts of fictitious injuries from members of the criminal gang. For each successful scam, the criminals can net in excess of £30,000.

The IFB was launched in July 2006, to clamp down on organised, cross-industry insurance fraud in order to protect honest policyholders. Fraud costs the insurance industry over £1.6 billion a year and adds 5% to premiums. Criminal gangs organising complex scams are earning up to £4 million a week from organised insurance fraud and frequently use the proceeds to fund other forms of criminality.

Via the IFB, the insurance industry is working collaboratively to detect and expose these criminal gangs; 97% of the UK’s personal lines insurers are participants in the IFB service. The Bureau analyses the details of insurance policies and claims records of all insurer members to identify suspicious activity. It then leads or co-ordinates investigations with the effected insurers and police to expose fraudsters and bring them to justice, recovering fraudulent monies paid out and seeking criminal prosecution.

For further information visit http://www.insurancefraudbureau.org/
For further media enquiries about the IFB please contact:
Anne Staunton / Nicky Godfrey
Peak Marketing and Communication Services
0845 056 0534
anne.staunton@peak-marketing.co.uk /
nicky.godfrey@peak-marketing.co.uk
For further information regarding Operation Pelican at West Yorkshire Police, please
contact West Yorkshire Police Press Office 01924 292 045.