Romance Scam Alert: How Victims Are Tricked into Committing Insurance Fraud!

While romance scams usually involve deceiving someone into sending money to a fraudulent partner met online, a different form of deceit involves luring individuals into participating in false insurance claims.

In these schemes, the fraudster, who may be romantically involved with the victim, persuades them either to pretend to be a witness to a car accident or to take out an insurance policy for a non-existent incident to claim financial benefits.

The Insurance Fraud Bureau (IFB) in the UK, which assists insurance companies in combating fraud, has identified several such cases in the past year, but believes many go unreported.

According to Nicola Smith, who manages intelligence and investigations at the IFB, victims may not report these crimes because they don’t involve direct financial demands from the victim.

“The primary reason for under-reporting could be the embarrassment involved,” she explains. “Furthermore, this type of scam doesn’t typically drain the victim’s financial resources directly. Instead, it exploits their identity.”

In a recent case, a man was jailed for 20 months by Bournemouth crown court after he convinced women he met on dating platforms to participate in orchestrated car accidents, leading to fraudulent insurance claims for personal injuries.

Named Nathan Atkins, he instructed the women on where and how the staged accidents should occur. These false claims were eventually compensated by insurance companies.

While this might seem financially harmless to the victims, their involvement could lead to being recorded on the insurance fraud register, potentially harming their ability to secure future insurance policies and affecting their credit ratings.

“Your identity is what they’re after,” Smith highlights. “It’s crucial to understand that by willingly participating, you’re also committing fraud.”

Understanding the Scam

The scammer looks for individuals who can be manipulated into fraud, not necessarily those with substantial savings. “Being wealthy isn’t a requirement for being targeted; they just need your identity and your consent to engage in the scam,” Smith states.

Victims might be coerced into the fraudulent activity by claiming to have been present at an accident scene, being in a vehicle during an accident, or suffering injuries from an accident.

Fraudsters typically provide a scripted story or detailed account that the victim needs to adhere to. “You might be set up to receive a call from an insurer asking if you were a passenger in the car,” Smith explains.

“Ultimately, involvement means you would be knowingly lying to an insurance company.”

Steps to Take

If someone you’ve met on a dating app solicits your participation in illegal activities, you should report them through the app.

You can document the interaction with screenshots and report it to the police or to the Report Fraud service.

The IFB also runs Cheatline, an anonymous service where you can report fraudulent activities.

Scammers often create a sense of urgency to pressure their targets into making hasty decisions. The IFB advises that if someone urgently requests your help, offer to call emergency services instead. If they refuse, it’s wise to be suspicious and discontinue the conversation.