Helen Harris, an interior designer, had a startling experience at a busy South London junction.
She was waiting to turn right onto a main road when a moped rider across the street flashed his lights and signaled her to proceed.
Helen, noticing that traffic was heavy, cautiously moved forward.
But just as she did, the moped sped off, and another moped, which had been waiting in line behind, rushed past and collided with the front of her car.
Helen was taken aback.
Despite the minor contact, the young moped rider, hidden behind his helmet, pretended to be in pain, claiming his wrists were hurt. Helen, skeptical of the sincerity of the accident, noted that there was no damage to either vehicle. She believed in the goodness of people but had doubts about the authenticity of the incident.
Her suspicions proved correct when her insurer received a claim for £2,667.70, despite neither vehicle showing any visible damage.
Helen’s no-claims bonus was frozen, and she braced for a rise in her insurance premiums.
“I feel deceived and frustrated,” she admitted.
Crash-for-cash scams, where motorcyclists stage accidents to fraudulently claim insurance money, are rampant, especially in London.
According to the Insurance Fraud Bureau (IFB), Birmingham and Manchester are also major trouble spots.
The scale of the problem is staggering, with Allianz reporting a 6,000 percent increase in such claims from January to December 2023, and the IFB estimating around 30,000 incidents annually.
“These dangerous fraudsters are deliberately crashing into unsuspecting drivers, leaving many victims terrified and insurers facing hefty fraudulent claims,” said Ursula Jallow, director at IFB.
Traditionally, these scams involved drivers braking suddenly to cause rear-end collisions.
However, in recent years, scams involving solo motorcyclists have surged. Graeme Mulvoy, a partner in counter-fraud at Horwich Farrelly, notes that this is now a major area of investigation.
Scammers often use various tactics to stage accidents.
They might hide in side streets or parking spots, then drive into the victim’s car. Sometimes they have accomplices or use a van to obstruct the view before the moped strikes.
After the fake collision, they might throw their moped to the ground and feign injury, taking photos of the scene.
Most scams occur around lunch time or during school run hours, targeting drivers who are likely to be less confrontational, such as young women or the elderly.
Helen, driving alone from a meeting, was targeted in Wandsworth.
After the initial moped rider sped off, the second moped crashed into her stationary car. Helen, trying to be courteous, asked if the rider was okay and suggested moving to the side street to avoid blocking traffic.
The rider, who had a questionable grasp of English, showed Helen a screenshot of his insurance but seemed to be acting out a pre-planned script.
It wasn’t until a witness suggested the incident might be a scam that Helen realized what was happening.
The Aftermath and Insurance Nightmare
Helen reported the incident to the police and her insurer, Direct Line.
Three weeks later, she received a solicitor’s letter claiming the moped required extensive repairs worth £2,667.70, far exceeding its value.
The letter also mentioned additional costs for a replacement vehicle and potential personal injury claims.
Helen’s frustration grew as her insurer’s response was sluggish and her no-claims bonus was suspended.
Similarly, Gina Lewis, who also fell victim to a scam, found her passion for driving tainted.
A fake accident left her car undamaged but resulted in an inflated claim for £4,000 and additional sums for personal injury.
Her insurer, Admiral, confirmed no damage was found but her premiums doubled, and she lost her no-claims bonus.
Precautions and Advice
To protect yourself from such scams, avoid confronting moped riders at the scene, as it could be risky.
Instead, collect their full name, address, phone number, and vehicle registration.
If possible, record a description of the driver and their vehicle. Installing a dash cam can provide crucial evidence if an accident is staged.
If you suspect a scam, take detailed photos and videos of the scene and the vehicles involved.
Joanna Thompson, a PR executive, found herself in a similar situation.
After a suspicious accident involving a speeding moped, she discovered a local WhatsApp group sharing stories of similar scams.
The scammer’s attempts to contact her through a now-defunct number confirmed her suspicions.
Joanna’s insurer received a fraudulent claim report, and despite her efforts, she felt the police were unlikely to catch the perpetrators.
With crash-for-cash scams costing insurers £350 million annually—costs that are passed on to drivers in the form of higher premiums—there’s an urgent need for more effective measures to combat this growing issue.
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