Crash for Cash: Moped Gangs Exploit Insurance Details!

It’s a typical dark evening and you’re paused at a stoplight in your car, trying to manage the noise from the kids in the back, when suddenly you feel a jolt as a moped bumps into your vehicle.

Upon exiting your car, you notice minimal damage. However, the moped rider is adamant about snapping a photo of your driving license or insurance details to facilitate any potential claims process.

Unbeknownst to you, this minor accident was deliberately staged as part of a “crash for cash” scheme. The information you provide may be misused to fraudulently register motor insurance policies under your name, paving the way for fake claims.

According to the Insurance Fraud Bureau (IFB), an organization dedicated to combating insurance fraud, there has been an uptick in identity thefts stemming from these moped-related scams.

This fraudulent activity has been particularly prevalent in London and surrounding areas such as Chelmsford in Essex, and Hertford, Rickmansworth, and St Albans in Hertfordshire.

From the summer of 2024 to March of the following year, the IFB recorded over 1,100 fraudulent motor insurance policies initiated by moped scammers using stolen personal details from these “crash for cash” incidents. Many more cases likely go unreported.

The IFB cautions that during the winter months, scammers may increasingly exploit challenging driving conditions.

“As the days grow shorter and road conditions deteriorate, the likelihood increases that drivers will fall prey to these hazardous ‘crash for cash’ scams,” remarks John Davies, an intelligence and investigations manager at the IFB.

Understanding the Scam

The scheme often begins with what seems to be an incidental crash. Moped riders might wait hidden on a side street or in a parking lot, only to collide into their unsuspecting victims at a low speed. Even if the damage is minor or nonexistent, the scammer will dramatically drop their moped and begin photographing the scene, falsely blaming the victim.

Next, they pressure the victim to provide unnecessary personal details, such as a driving license or an insurance document, and take pictures of these documents at the scene, capitalizing on any confusion.

These stolen details are then used for various financial crimes. In one situation highlighted by the IFB, over 40 insurance policies were fraudulently opened under a victim’s name using the provided information, which only came to light when the victim received unexpected insurance letters.

In another disturbing case, criminals commandeered a victim’s insurance policy to file false claims.

While this scam can victimize anyone, perpetrators often target women driving alone or with children, as well as elderly individuals.

Steps to Take

After an accident, you are only required to exchange names, addresses, and vehicle registration details, not documents like your insurance policy or driving license.

If you suspect you’ve been targeted, try to gather as much information as possible about the incident—details of the moped, the license plate, a description of the driver, any witnesses, and dashcam footage.

Immediately inform your insurer and the police that you suspect a “crash for cash” scam. The IFB also offers a confidential Cheatline service for reporting such incidents.

Additionally, you can register for Cifas Protective Registration (£30 for two years), which adds your details to a national fraud database. This alerts companies using Cifas data to exercise extra caution when your details are used in applications for products or services.