Hot-spot for insurance fraud
Ealing Times Online / 7th December 2006
Southall has become a "hot spot" for criminal car gangs who stage crashes to make fake insurance claims, new figures show.

Statistics released this week from the newly-established Insurance Fraud Bureau (IFB) have revealed that more than 440 accidents have been staged in Southall since 1999.

And there is evidence to show the proceeds from this type of fraud are used to fund crimes like drug trafficking and gun-running.

The con works when bogus claims are made for accidents that never happen, or a gang stages crashes with already written-off cars to scoop massive insurance pay-outs.

Fraudsters also drive to busy road junctions and then perform unexpected and dangerous emergency stops to make innocent members of the public crash into them, endangering lives.

Claims are made to the innocent motorist's insurer, often including several made-up injuries from members of the gang to increase the claim and frequently using false names to avoid being tracked by police.

Criminals can net up to £30,000 for each successful scam.

John Beadle, chairman of the IFB, said: "The criminal gangs targeting honest motorists are ruthless and innocent lives are being put at risk.

"We must take a rigorous approach to this significant national problem which is impacting many cities across the UK and requires an urgent solution.

"The key is collaboration between the insurance industry, police, public bodies and the general public."

The IFB was set up in July to work with police economic crime departments and insurers to combat the rise in the scam.

Its research findings were presented to the All Political Party Working Group for Insurance and Financial Services on November 29.

More than 22,500 fraudulent staged and induced motor accidents have taken place nationally in the last seven years, adding, on average, five per cent to insurance premiums as a result.

The scam was first detected in the North West of England, but there has now been a significant growth in the crime across the UK including London and the South East.

In June three houses in Acton were raided in a swoop on a suspected fake car insurance gang.

Officers from the City of London Police stormed addresses in North and West London on June 28 as part of an investigation into a large-scale insurance fraud and money laundering scam.

A Ferrari and two BMW X5 cars were also seized from the Acton homes.

Insurers estimate fraudsters cost the industry around £1billion each year.

Martin Milliner, claims fraud manager at Direct Line, said: "Our industry takes fraud extremely seriously.

"Contrary to popular belief, it is not a victimless crime and, unfortunately, it's honest customers who end up paying.

"We have dedicated teams of counter-fraud specialists right across the country who utilise a wide range of measures to identify and track down fraudsters in order to ensure that costs are contained."