Insurance Fraud Bureau (IFB)

The recently established Insurance Fraud Bureau (IFB) seeks to expose organised insurance frauds in the UK. The last 5 years has witnessed a dramatic increase in the number and scale of organised car insurance fraud and scams. Some gangs are making exceptional sums of money by defrauding motor insurers.

The IFB operates the Fraud Cheatline. Anyone with information on suspected insurance fraud can call this free and confidential helpline. Their telephone number is: 0800 328 2550.

To add some figures to the level of this activity we can establish that in 2005 insurers exposed and stopped frauds worth over £400 million; an increase of 50% on 2004. As well as the increasing scale of the criminal operations, the complexity of each claim and scam is becoming overwhelming.

It is not just the insurers who are suffering. Innocent motorists in the UK are becoming the victims of such crimes. Policyholders’ lives are being put at risk by criminal behaviour on the road. Sudden braking with no warning (achieved by disconnecting the rear brake lights of the gangs car) giving the following driver no opportunity to stop - even from a (considered) safe distance.

This type of activity is often refereed to within the industry as an 'Induced Motor Accident'. This is organised fraud, whereby an innocent motorist is induced to crash into the back of the fraudster’s vehicle. Claims are made to the innocent motorist’s insurer, often including several accounts of fictitious injuries from gang members.

Other examples include fraudulent arson, fraudulent disability claims and supplier fraud where insurers receive bills for work that have been exaggerated or not done. In many cases these criminal gangs have bogus claims running with numerous insurers at one time.

The big question is 'Is it possible to beat these gangs, reduce the risks to innocent motorists and reduce car crime and fraudulent claims. The answer is definitely yes, with insurers working in partnership with the police and policyholders to beat the fraudster's and protect the honest policyholders.

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