Tag: identity theft

Drivers warned of rise in moped scammers stealing people’s details

Drivers are being urged to avoid exchanging unnecessary details after an accident, such as pictures of their insurance certificate and driving licence, following a rise in a new crash for cash tactic involving identity theft – warns the Insurance Fraud Bureau (IFB).

Since last summer, the IFB has discovered over 1,100 fraudulent motor insurance policies were taken out by moped scammers using stolen details of crash for cash victims, which can result in significant emotional distress and financial hardship for those affected.[1]

The issue links to a £75 million insurance fraud scheme, which to date has seen 4,700 innocent road users deliberately targeted by two-wheel scammers in collisions across London, and more recently, in the South East.[2]

To help protect the public from this devastating new scam, the IFB has launched an awareness appeal to urge road users to watch out for the warning signs and report it to CheatLine.

John Davies, Intelligence & Investigations Manager at the IFB, said: ““This latest trend shows just how relentless moped scammers are, as not only are they putting innocent road users at risk and accusing them of causing collisions, they’re now stealing their details to commit financial crime and it’s having a horrendous impact on victims.

“It’s important to remember, if you’ve had an accident and the other driver wants a photo of your insurance certificate or driving licence, that’s a red flag – you only legally need to share your name, address and vehicle registration number. Don’t be pressured into handing over anything else.

“We’re working closely with insurers and the police to stop this fraudulent activity. Anyone who believes they have evidence of a crash for cash or thinks their details have been stolen for an insurance scam, should report it to CheatLine.”

Detective Inspector Marek Coghill at City of London Police’s Insurance Fraud Enforcement Department (IFED), said: “Organised criminal gangs continue to cause collisions with innocent parties’ vehicles for the purpose of benefitting from bogus insurance claims and stealing the identity or policy details of the innocent party.

“These ‘crashes’ often occur at low speed, particularly junctions, incurring minor or no impact, and little damage to either vehicle. The value of the insurance claims is often inflated, for repairs, storage, and replacement vehicles, which makes this lucrative criminal activity attractive for fraudsters. It is important that the public remain alert to this type of fraud, and we encourage communities to share knowledge of this offending.

“If you witness or are involved in a collision and suspect it is Crash for Cash fraud, gather as much information as possible. This could be the make and model of the moped, its number plate, livery, or the clothing that the driver is wearing.

“These details could be invaluable in disproving a fraudulent claim. Report the incident as soon as possible to the Insurance Fraud Bureau’s CheatLine.”

The scale and impact of crash for cash moped scams

Crash for cash moped scams have been on the rise since 2021. They are common across London, and recently there have been growing reports in South-East England; including in Chelmsford in Essex, Hertford, Rickmansworth and St Albans in Hertfordshire.

While anyone can be affected, victims are more often women who are driving alone or with their children, and there have been recent reports of elderly people being targeted.

Unlike traditional crash for cash scams where fraudsters slam on their car brake to cause a collision with the victim behind, moped scammers drive into oncoming traffic. They often hide out of sight in a side road or parking space, then drive into victims as they head towards them, before throwing their moped to the ground, taking photos and accusing the other driver of fault.

In this latest development, moped scammers are exploiting the need to exchange details after a collision, by pressuring victims who may be in a distressed or confused state, into showing a copy of their insurance certificate or driving licence, which is photographed at the roadside.

The fraudsters then steal their details, which can be used in a range of financial crimes. Notably, this includes taking out fraudulent insurance policies, which are used to facilitate bogus claims linked to crash for cash activity.

In one case, a victim of a moped scam who was pressured into showing their details, had over 40 insurance policies taken out using their stolen information, which was discovered after they started receiving letters in the post.

In other instances, the scammers are also using these stolen details to hijack victims’ existing insurance policies and implicate them with fraudulent insurance claims.

The IFB is working closely with the insurance industry and IFED at City of London Police to disrupt the issue, which so far has helped to prevent thousands of fraudulent claims from being paid out. As moped scammers’ tactics continue to evolve and become more aggressive, the public is being urged to stay vigilant and report any suspicions to CheatLine to help bring the fraudsters to justice.

Top tips to stay safe from moped scammers

Look out

Be vigilant of anyone on a moped (or motorcycle) who is lingering unnecessarily or trying to hide out of sight, at the end or sides of roads or behind parked vehicles.

Know the signs

The moped scammer will drive head-on into their victim, may throw their moped down and even drop to the floor to fake an injury, before taking photos of the incident. They might also have an accomplice appear to act as a witness.

Collect information

If targeted, collect as much info about the incident as possible, including details of the other road user, any witnesses, photographs and recordings (local CCTV or dashcam footage).

Do not exchange unnecessary details

After an accident, drivers are only legally required to exchange their name, address and vehicle registration. Do not share further information; including copies of insurance certificates and driving licences.

Report it

If targeted in a suspected crash for cash scam, victims should tell their insurer and contact their local police force. Evidence can be reported to IFB’s confidential CheatLine service via an online form, or phoneline (powered by CrimeStoppers) at 0800 422 0421. 

Public warned of rise in identity theft

  • The Insurance Fraud Bureau (IFB) reports a 97% rise in organised insurance fraud being facilitated by stolen identities in the past year. 
  • Identity theft has a devastating financial impact on victims and fuels a wide range of insurance scams, including dangerous crash for cash activity and ghost broking.
  • Cifas exclusively reveal most victims of impersonation are now over 61 years old.

The public is being urged to look out for signs of their personal information being misused as the Insurance Fraud Bureau (IFB) finds a rise in scams fuelled by identity theft.

Reports of insurance fraud resulting from stolen identities provided to the IFB by UK insurers, police and regulators have nearly doubled in the past 12 months.[1]

Stolen identities are highly valuable to criminals as they can be used for a range of harmful scams, leaving victims in financial hardship and emotional distress.

In an urgent bid to protect more people from being targeted, the IFB has launched a campaign to encourage the public to be vigilant.

Ursula Jallow, Director at the IFB, said: “We’ve seen a worrying rise in insurance fraud made possible by identity theft. Stolen personal information can be used for every financial crime imaginable, and victims of impersonation who are often elderly or vulnerable, face devastating consequences.

“We urge everyone to be cautious when sharing personal details and to spread the word to their friends and family. If anyone thinks their information has been used in an insurance scam, they should report it to our confidential CheatLine.”

The IFB often finds that drivers who are cheaper to insure are frequently impersonated by Ghost Brokers, who take out policies in victims’ names and doctor these to sell them on at higher prices.

Misrepresented motor insurance policies are also used by fraudsters to facilitate dangerous Crash for Cash scams and to insure vehicles linked to serious crime.

In a recent IFB investigation with Hertfordshire Police, it was found that hundreds of identities had been stolen by a gang who took out fraudulent motor insurance policies to steal brand new cars from dealerships via finance deals.

In another investigation, the City of London Police’s Insurance Fraud Enforcement Department (IFED) and the IFB suspected that a gang had impersonated over 200 people – from personal to commercial policyholders – to either make bogus claims in their names and divert funds to third parties, or pretend victims had caused collisions to fraudulently obtain compensation.

Cifas, a not-for-profit organisation which protects public, private and voluntary sectors from fraud, says identity fraud dominates the National Fraud Database (NFD) making up 64% of all cases. Concerningly, their records also show most victims of impersonation are now over 61 years old.[2]

Cifas believes that the cost-of-living crisis has resulted in this age group being more susceptible to social engineering tactics and enticing offers to ‘sell’ their identity. They have also seen more younger age groups sharing sensitive information on social media and messaging apps.

Campaign video:

https://vimeo.com/manage/videos/932461573/8027f625eb

Stephen Dalton, Director of Intelligence at Cifas, said: “Identity fraud continues to be a favoured tactic for many criminals when exploiting innocent people to steal their identities and use personal details to fraudulently open and abuse financial products and services.

“It’s therefore vital that individuals protect their information by never divulging financial details or credentials that could be used against them. We support IFB’s campaign to bring this important issue to the public’s attention and remain committed to working with our insurance members to keep the public safe from fraud and financial crime.”

Protecting your identity

Fraudsters can attempt to impersonate someone with just a few stolen details (such as a name, date of birth or home address) and this can be used for most frauds; including insurance, banking and credit fraud.

Victims may be pursued by third parties looking to recover costs of financial arrangements made in their name, which can impact their credit score making it difficult to get loans, credit cards or even mortgages for years to come.

Simple measures can help to protect personal information:

  • Create strong unique passwords for personal accounts.
  • Avoid publicly sharing personal details on social media.
  • Only make purchases through legitimate retailers’ websites and be wary of any person or organisation asking to use your bank details.
  • Protect personal devices by installing the latest software and app updates, and where possible opt to use two-factor authentication.
  • Avoid phishing attempts which encourage you to click on links and open files.

If anyone thinks their identity has been compromised for an insurance scam, this can be reported to the IFB’s confidential CheatLine online or via its phoneline (powered by CrimeStoppers) on 0800 422 0421.

Cifas’ victim of impersonation advice has guidance to help people targeted by identity theft.

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