What is a crash for cash scam? How do they work? Who’s being targeted? How can they be spotted? What can you do about them? Read our guide to make sure you’re not the latest victim.
Just when you think you’ve seen it all, another variation on a scam rears its ugly head. In addition to causing car crashes so that they can make car insurance claims, criminals are now trying to extort cash from their innocent victims at the scene of the crime.
Crash for cash is big business, and criminals can make tens of thousands of pounds from these scams.
What is a crash for cash scam?
In the majority of accidents where one car hits another from the rear, it’s the car behind that is deemed the guilty party. Criminals take advantage of this by giving the driver behind no option but to hit the car in front. They cause the accident in a number of ways, including pulling away then jamming on their brakes; working in conjunction with another driver in front of them who brakes suddenly then speeds away; or disabling their brake lights to cause the car behind to run into them.
Other tactics include fraudsters waiting to throw objects at passing cars in order to make an impact sound and then accusing the innocent drivers of clipping an already-damaged wing mirror.
And the rise of moped and scooter delivery services has provided fertile ground for criminals who will target drivers as they park their cars, deliberately hitting the car door and claiming it was the motorist's fault.
A representative from the City of London Police's Insurance Fraud Enforcement Department, said:
"Crash for cash fraudsters have no regard for the consequences of their actions and place financial gain above all else. Not only can they put the safety of innocent motorists at risk in order to make money, their actions also drive up the cost of insurance premiums for all drivers."
Who are the victims?
As is the way with criminals, they target vulnerable drivers; people who don’t want to cause any trouble or who are under time pressure so they don’t ask too many questions. Those most at risk tend to be elderly drivers and young drivers.
How to tell if you’ve been victim of a crash for cash scam
The Insurance Fraud Bureau says the crash for crash fraudster will be far too calm for someone who’s been involved in a car accident.
Anyone involved in an accident is usually shocked. Genuine accident victims may be irritated or perhaps excitable and they could be unsure what happens next.
A scammer will probably have already written down their insurance details or certainly have them close at hand. And if there are any injuries, they may be far more serious than the force of the impact might suggest.
How does on-the-spot crash for cash work?
Frequently, the fraudster’s car will have multiple passengers, all of whom will get out of the car rubbing their necks and claiming to be suffering from a hard-to-prove whiplash injury. They will then put in a hefty claim against the innocent driver’s insurance. That will mean your insurance premium may increase.
Another variation on the scam is when fraudsters suggest you pay them off to keep quiet. They may even be kind enough to give you a lift to the cash point. They’ll then make an inflated claim to their insurer anyway.
How do you combat crash for cash?
Dashcams help immeasurably as they can offer a first-hand account of the incident. If you don’t have a dashcam and you're involved in a crash, look around for CCTV cameras. If there are some, you may be able to obtain the footage to show that you weren’t actually at fault. Sadly, many fraudsters have already thought of this and stage their crashes where there isn’t any CCTV. If that’s the case, look for witnesses.
It is imperative that you record as many details as possible. This includes the other driver’s name, address, phone number and the registration number, make and model of their car. Also, ask to see their driving licence. Don’t admit fault for the accident and take a photograph of the other car and the people in it so that they can’t later claim for passengers who weren’t present. Photos and ID checks also help identify repeat offenders and trace their true identities.
If you’re suspicious about the circumstances of the crash, call the police and tell them.
You can also call the IFB’s Cheatline and report your suspicions.
