Birmingham top hotspot for motor fraud - Keoghs

Birmingham remains the top location for motor fraud, according to the Keoghs Motor Fraud Index.

The city accounted for more than 7% of all suspected motor fraud across England and Wales handled by the law firm, and retains its top spot for the fifth consecutive year.

Other areas high on the list of motor fraud hotspots include East London (4.6%), Bradford (4.2%) and Manchester (4.1%). See table, below.

Liverpool meanwhile has fallen out of the top five for the first time since the index was launched in 2009. The city now accounts for just 2% of suspected frauds, and lies fourteenth in Keoghs’ table.

Fraud rings continue to rise

The index also revealed that the spread of fraud rings has increased, with these organised gangs now accounting for more than a third (34.4%) of all suspected frauds.

Furthermore, the index found that almost a fifth of all fraud ring related claims had claimants based in Birmingham, East London and Bradford.

Keoghs partner and director of counter-fraud strategy James Heath said he was alarmed at the rate motor fraud was increasing, and reinforced his commitment to the work of industry bodies in the fight against fraud.

“This year’s results continue a trend we have seen over the past few years; an ongoing and alarming spread of fraudulent motor claims.  As in previous years, Keoghs’ Index shows that only relatively small areas of the UK are left unscathed by the problem of fake motor insurance claims,” he said. “Of particular concern is the further significant growth in fraud rings and networks, showing once again that organised criminals see insurers as a key target for their insidious activities.

“As such we embrace the work that both the Insurance Fraud Bureau and Insurance Fraud Department at the City of London Police are conducting in this area, and we will continue to support and work with both organisations to stamp out organised insurance fraud.”

More to follow.