Tag: IFB

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 misleading claims adverts could cost them thousands

  • Survey findings show only one in five people have heard of paid-ad spoofing scams.
  • The Insurance Fraud Bureau (IFB) is currently investigating 140 claims linked to paid-ad spoofing activity collectively worth £1.82 million (£13K per claim).
  • Amy, 25 from Liverpool, shares her experience of being targeted.
  • IFB has launched a national campaign to help people spot the signs of the scam and report it to CheatLine.

The public must be vigilant when searching for their insurer online, warns the Insurance Fraud Bureau (IFB), as it’s revealed that victims of paid-ad spoofing scams could be facing up to £13,000 in unsolicited fees.

Paid-ad spoofing scams involve unscrupulous firms paying for search engine ads that mimic those of genuine insurers. The victim, who needs to contact their insurer to make a claim, can unwittingly contact a third party while believing they’re dealing with their insurer, only to rack up thousands of pounds in fees which otherwise could have been covered by their policy.

Recent YouGov findings show only one in five people (18%) have heard of paid-ad spoofing scams and with millions using insurance services every day, countless consumers are at risk.[1] As a result, the Insurance Fraud Bureau (IFB) has launched a national campaign to highlight the signs of the scam and to encourage people to report it to CheatLine.

Jon Radford, Head of Intelligence, Investigations & Data Services at the IFB, said: “Paid-ad spoofing is a malicious and calculated practice which can have a devastating impact on victims.

“Unscrupulous firms will deliberately pay for search engine ad results that misrepresent genuine insurers. Having just experienced a road traffic collision, their victims are often in a shaken state, and when they call who they think is their insurer for support they end up trapping themselves in legal agreements that may cost them everything.

“We’re working with insurers and the police to raise awareness and the message is simple – save your insurer’s contact details so you have it to hand if needed and report any signs of paid-ad spoofing scams to our confidential CheatLine.”

It can happen to anyone

Amy, a 25-year-old Camera Assistant from Liverpool, was returning home after visiting friends in early 2024. While driving along a dual carriageway at 50mph, a driver cut in front of her and caused a collision. She knew she had to contact her insurer as soon as she got home. Still shaken, she searched for her insurer on her phone’s browser and called a number on a sponsored ad and provided her details, while being completely unaware it was a third party.

The man on the other end of the phone had been helpful, however Amy thought it was unusual that he hadn’t asked for her policy number. When she told her father, Carl, who is coincidently a counter-fraud Manager at Aviva, he realised she’d been targeted by a paid-ad spoofing scam. Together, they made a series of exhausting phone calls over several hours, to finally withdraw from financial arrangements so Amy wouldn’t face unsolicited charges.

Amy commented on the experience: “I’d never think that I’d be the type of person to be scammed from something like this, but these people are very good at what they do and they’ll get you when you don’t think you’re in a position to be caught, so it’s important to be careful and check everything when searching for your insurer.”

Watch Amy’s story

Pete Ward, Head of Claims Counter Fraud at Aviva, said: “The scourge of misleading online ads is an issue that affects all motorists and insurers. At Aviva, we believe prevention is better than cure, which is why we are working with the IFB to highlight the serious financial implications of paid-ad spoofing. We suggest that drivers save their insurer’s claims number in their phones or keep it handy in their vehicles.   

“When customers mistakenly respond to misleading online ads, we take immediate action to identify and investigate, sharing intelligence with the IFB and relevant regulators. Our proactive monitoring of ads that breach Google’s terms has led to successful takedowns of misleading ads and associated web domains. 

“We’ve seen too many instances where customers contact us about a claim, only to find they never made a claim with Aviva. Imagine the concern when customers realize they don’t know who they are dealing with, what they have agreed to, or the implications of these agreements.

“This confusion puts customers at risk of extreme financial harm: they enter agreements for services like recovery, storage, repair, and hire, believing these costs are covered by their insurance. However, if these costs aren’t recovered from the other party’s insurer, the customer may be liable. 

“There should be no situation where a customer is misled about the identity of the company they are dealing with or the financial implications of the agreements they have signed.” 

How do paid-ad spoofing scams work?

A paid-ad spoofing scam is when a claims firm pays for a search engine ad result which shows up when someone is looking for their insurer. The ads are similar in style to that of a genuine insurer’s and are more likely to appear in mobile phone searches, to encourage people to call through quickly.

Over the phone, the firm may use general terminology to sound like the insurer or to imply that they are affiliated with them. The victim is asked for their personal details to receive ‘support services’ such as a replacement vehicle, and potentially make a claim, which can result in unsolicited third-party agreements.

While any insurance customer can fall victim, those who have been in a road traffic collision are most at risk as they may be shaken after an accident and not thinking as clearly when looking to make a claim. Victims may also believe their fully-comp motor insurance covers everything, but as they don’t know they’re not talking to their insurer, they can sign up to more and more services and it may be weeks until they discover the charges.

Who pays these fees varies. If the other driver is at fault, the firm will claim against their insurer to recover the costs of its unsolicited services. In these cases, the affected individual may not realise they have been linked to a scam. Or, if the other insurer doesn’t believe all the charges as justified, then the victim of the paid-ad spoofing scam may still face some costs.

However, if the other driver is not at fault of the collision, the onus is entirely placed on the person who was mislead into contacting the claims firm for support, to cover all costs that otherwise could have been included with their insurance policy. These fees can run into tens of thousands of pounds and can result in non-stop threatening calls to the victim from third-party firms. In one case, a victim was even pursued to cover over £50,000 in unsolicited fees.

Not only can victims suffer a financial loss, but there is also evidence some firms linked to paid-ad spoofing activity have stolen personal information to use in further fraudulent activity.

The IFB is currently investigating 140 claims linked to paid-ad spoofing worth over £1.8 million in suspected fraud, however it’s believed these figures only scratch the surface as many people are unaware they’ve been targeted.[2]

Top tips to avoid paid-ad spoofing scams

  • Keep your insurer’s contact details written down or saved on your phone.
  • Download your insurer’s app as this usually has customer service support functionality.
  • If searching for your insurer online, go on the insurer’s website to obtain contact details.
  • If viewing a sponsored ad result, check the URL and phone number to ensure it’s legitimate, before sharing any personal information and agreeing to claims services. 

If anyone has concerns relating to paid-ad spoofing scams, they should tell their insurer and contact the IFB’s confidential CheatLine online or via 0800 422 0421.

Focus on strength and resilience for Scottish Family Business Week

A free event dedicated to Scottish family businesses, hosted by Royal Bank of Scotland, has kicked off this week, exploring how a strong and resilient business can be built in the current climate.

With a mix of live panel discussions, interactive breakout sessions and a variety of supporting thought leadership materials and podcasts being shared virtually, the Scottish Family Business Week: Strength and Resilience in an Ever Changing World is set to welcome over 250 businesses.  

Together with Institute of Family Business (IFB) and KPMG, Royal Bank of Scotland moved the annual conference online, giving local family firms the opportunity to explore together fresh insights, strategies, and solutions to current business questions.

With speakers including Arnold Clark Automobiles’ Adam Clark (above), and Iain Anderson of GAP Group, the event will cover key themes, such as: next generation and succession; diversity and female leadership; purpose and culture; innovation and entrepreneurship, and more.

The conference, which runs until 30th October, is free to attend and will allow family businesses to connect with peers to share experiences and knowledge through a series of daily online events.

Charlie Serafini, Relationship Director at Royal Bank of Scotland said: “This year, we have worked closely with many families to understand their needs and, where required, provide financial support to help them trade through these exceptional times.

“Whilst the pandemic has thrown many curveballs, we have found family businesses to be more resilient, adaptable, and agile. With an acute awareness of the role they play as employers within local communities, many have pivoted and diversified to create new revenue streams as a result of the pandemic.

“With family businesses representing 85% of privately owned Scottish companies, we feel it’s essential for these businesses to come together to connect, listen, learn and discuss the issues which matter to them most, to ensure a strong recovery.”

For more information, and to register, visit: https://www.ifb.org.uk/events/scottish-family-business-week.

Events will be recorded tor businesses which are keen to attend, but unable to join on the day.