Fake Crash Fraudsters Netting Millions

Criminals are staging car crashes to defraud motor insurance firms of tens of millions of pounds every year, says the motor insurance industry.

The scams are easy to carry out and often feature fake witnesses and passengers to add to their authenticity. Catching the gangs involved is almost impossible say the police.

A solicitor has been investigating one of the 'phantom' car crash rings over the past year, and estimates that just one gang has cost motor insurance firms £10 million.

"If you are a punter on the street, you go to a local Mr Big and pay £500. He will have an army of drivers who will take the car and set up an accident, typically at a roundabout, involving an innocent member of the public," the solicitor commented.

"A stooge driver will use the punter's identity documents to impersonate him. The punter will then make a motor insurance claim. The Mr Big also owns a medical legal agency which provides a fake medical report for a whiplash claim as well."

The average motor insurance payout on a staged accident is £3,000, with whiplash damage adding a further £2,500.

Convictions for the fake crashes are rare and very hard to prove, say the motor insurance industry, which estimates that between £48 and £200 million is paid out on fake claims every year.

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