Tag: Insurance Fraud Bureau

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.

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.

Industry calls on public to help ‘stop the scams’

** predicted rise in insurance fraud **

A national campaign, called ‘Stop the Scams’, has been launched by the insurance industry to help the public spot signs of scams and report them to the Insurance Fraud Bureau (IFB) Cheatline following predictions that insurance fraud will rise.

Recent figures show fraudulent insurance claims rose by 5% in 2019 with many being linked to dangerous scams. There are concerns the current economic climate could see this figure rise further, following the 2008 recession where fraudulent insurance claims increased by 17%.

Currently at least one insurance scam takes place every minute in the UK, leaving victims devastated and costing honest consumers more than £3 billion each year. 

To help protect the public and stop insurance scams rising, the IFB along with the Association of British Insurers (ABI) which represents the UK’s 200 insurers, and the City of London Police Insurance Fraud Enforcement Department (IFED), are launching the ‘Stop the Scams’ ad campaign which will see animated scam warnings rolled out across social media.

Common insurance scams highlighted by the campaign:

Compensation scams

This is when a fraudster or unscrupulous firm contacts someone out of the blue to tell them they may be entitled to compensation.

If convinced, victims will hand over their personal details which can be used to steal their identity or bank funds, or they could be encouraged to take out a fraudulent insurance claim.

With record numbers out of work or losing money due to the disruption of Covid-19, these scammers may offer to recover financial losses incurred as a result of the pandemic.

‘Ghost Broker’ scams

A ‘Ghost Broker’ is a fraudster who poses as an insurance provider to target people who struggle financially with unrealistically cheap fraudulent insurance deals on social media.

These fraudsters are known for selling fake car insurance. However, with Covid-19 impacting so many people’s work and travel plans, ‘Ghost Brokers’ could also offer deals that claim to compensate further disruption.

‘Ghost Broker’ scams are rising. The IFB has seen its percentage of investigations into the issue double in recent years. Research also shows one in three 18-24 year-olds has seen a suspicious insurance advert on social media.

‘Crash for Cash’ scams

This involves a fraudster who intentionally drives dangerously (such as slamming on their brakes with a car close behind) to cause an innocent motorist to crash into them so they can claim for compensation.

With many people still getting back into the habit of driving after months of reduced activity, the risk of falling victim to a ‘Crash for Cash’ is higher if driving skills are not up to scratch.

One in every ten injury claims for a motor collision is linked to a suspected ‘Crash for Cash’. The scam often leaves victims injured and facing the loss of their no claims discount. 

Ben Fletcher, Director of the IFB, said: “With Covid-19 causing so many people to lose out financially it sadly means there are more opportunities for insurance scammers to exploit the vulnerable. These fraudsters don’t care who suffer – from the elderly to key workers, we’ve seen them get targeted.

“It’s never been more important to raise public awareness of insurance fraud which is why we’re launching the ‘Stop the Scams’ campaign. If anyone sees something that doesn’t look right, they should report it to the IFB Cheatline.”

Mark Allen, Fraud and Financial Crime Manager at ABI, said: “Insurance fraud is no victimless crime. While the Coronavirus crisis has led to financial hardship for many, no one should think that committing an insurance fraud is a path to easy money.

“From getting a criminal record and possibly a jail sentence, to finding future insurance and other vital financial products like mortgages and loans, much harder to obtain and more expensive, the consequences of committing fraud will be severe and long-lasting.

“The industry makes no apology for its relentless pursuit of insurance cheats to protect genuine customers who end up footing the bill through their insurance premiums.”

Detective Superintendent Peter Ratcliffe, Head of the City of London Police’s Economic Crime Funded Units, said: “Fraudsters will use any opportunity to try and steal money from the public, including the exploitation of tragic events such as the current worldwide COVID-19 pandemic.

“We work effectively with the IFB, ABI and insurers to tackle insurance fraud, and our unit has continued the fight against criminals, despite the challenges posed by coronavirus.

“Our industry partners provide us with valuable intelligence to help us identify suspected fraudsters and carry out this enforcement activity, but we also rely on information from the public. As such, it’s vital people report to IFB’s Cheatline when they have information about a suspected insurance fraud or fraudster.”

Evidence of an insurance scam can be reported to the IFB’s confidential and anonymous Cheatline (powered by Crimestoppers) on 0800 422 0421 or online.

The IFB uses information from Cheatline reports to work with insurers, the police and industry watchdogs to help fight fraud, keep people safe and keep costs down.