The Insurance Fraud Bureau (IFB) plans to ramp up its anti-fraud operations following the arrest of six people last week in connection with staged motor accidents.
The IFB also revealed plans to widen its portfolio of anti-fraud activities. Deputy chairman Richard Davies said that the organisation was considering other options for combating fraud, but declined to elaborate.
The dawn raid in Keighley, Yorkshire, was the third of its kind this year, and the culmination of a three-month investigation instigated by the police at the behest of the IFB.
The latest arrests bring to 29 the total number of those accused of staged motor accidents since November.
Davies said that further motor-related initiatives could be expected in the future, with the operations being ramped up in terms of both size and scope.
He said: “This type of activity will be repeated on a much larger scale.”
He added that further inquiries were “ongoing”.
But despite the success of the joint efforts of the police and the IFB, Davies admitted that the success of the operations were yet to act as a deterrent to fraudulent behaviour.
“It will be some time before we can expect to see changes in behaviour with regard to staged accidents,” he said.
Known as ‘crash for cash’ scams, staged motor accidents constitute a major part of organised fraud, which costs the insurance industry an estimated £200m a year.
The IFB said each successful insurance scam netted in excess of £30,000 and involved offenders staging or contriving collisions between themselves.
The criminals also involved innocent motorists in collisions in order to make a claim on their insurance.
In these accidents, the gangs would also claim for fictitious injuries to bump up pay-outs.
During the dawn raid, police said they seized a large number of financial documents and a high value car at various properties in the Keighley area.
John Beadle, chairman of the IFB, said: “The insurance industry is no longer an easy touch for these organised fraudsters.”
