'Cash for Cash’ (CFC) scams are exactly what they sound like; a staged car accident or deliberately caused road traffic collision - solely for the purpose of financial gain.
It is estimated that it costs motorists around £340 million a year, and over the years scammers have become more sophisticated in their tactics to cause such incidents.
One dangerous method is where an individual fraudster, or a team, set-up potentially dangerous driving situations to cause an innocent victim's car to crash into the one owned by the scammers, making a member of the public the ‘guilty’ party. The most common method of this involves the offending car indicating and then sharply pulling out in front of the victim and braking harshly, causing the victim to shunt the back of the scammer. In this situation, the car crashing into the back of the scammer would be seen as at fault and the fraudster can claim off the victim's insurance for the damage to the car. Alternatively the fraudster will seek compensation for an alleged injury such as sprains, or whiplash.
However, it’s not often that the scammer acts alone - they often use a ‘second car’ that will simulate a situation, or they will plant a fake witnesses that can testify on the behalf of the scammer to win the case, making it difficult for the victim to protest innocence.
Sometimes people won't realise they have been involved in a CFC scam, however there are some clear tell-tale signs the IFB have identified;
The growing popularity of Dashcams and other in-car cameras make it difficult for scammers to easily get away with CFC fraud, clearly revealing their suspicious driving habits in the instance of the crash - a small investment can easily save you some money and slap these fraudsters behind bars!
If you’re ever involved in a crash that seems suspicious, make sure to take down as much information about the incident as you can involving license plates, passengers and such. Call the police and report your suspicions (this is where the dashcam footage can really help!) and contact your insurance company immediately, who can advise you on the next steps.
Make sure you a have a fully comprehensive and valid insurance policy in place; local people recommend contacting Henshalls Insurance Brokers on 01952 426220 to help find the best car insurance deal for you.
Member since: 10th July 2012
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