Flash For Crash Insurance Fraud

posted on

Many motorists are being affected by a new insurance fraud tactic that has been called ‘flash for crash’. This form of fraud occurs when cars wait for victims to exit from stores, car parks, or gas stations. Those who are causing the fraud then proceed to flash their lights at the victim and offer them a right of way to join the road -- the catch is that they then speed up to ensure that the car is hit from the side.

This new form of fraud has emerged as a trend for concern since the beginning of the year based on information from the fraud investigation specialist APU. "It is yet another example of how criminal gangs are becoming more sophisticated and attempting to stay one step ahead of suspicion," said Neil Thomas, APU's director of investigative services. "The adoption of flashing headlights and beckoning the driver results in a 'your word against mine' situation when it comes to apportioning blame. By appearing to offer the right of way, the criminal simply continues his journey into a collision, holding the victim at fault for turning across him which, of course, cannot be denied under law."

APU reports that 380 false insurance claims are made on a daily basis. This costs the motor industry around £1.7 million per year. It also forces the insurance premiums to rise because insurance companies have to deal with the amount of cars that they have to insure on a regular basis, noting that it’s becoming more risky to provide insurance these days. The Insurance Fraud Bureau is currently investigating 49 fraud rings, which are supposedly responsible for around £66 in false claims.

Not only is the issue associated with insurance a concern, but the amount of risk that this type of insurance fraud can put towards the safety of other people. People who are victims of this type of fraud are never even aware of what is happening until it is too late -- even then, they often don’t realize that they have been targeted as a victim of fraud because they assume that they have just gotten into a traditional car accident. However, it’s incredibly risky towards the safety of others on the road, because victims can easily become injured due to the impact of the cars.

Many car insurance companies are now trying to make their policyholders more aware of the existence of flash-for-crash insurance fraud crimes. The hope is that making them aware will make them more likely to pay extra attention on the road and try to identify their risk for being victimized in this manner, allowing them a chance to avoid it. It is also helped that by promoting awareness, the people who are causing the fraud will begin to realize that the insurance companies are aware of what they are doing and that they are not going to be able to continue getting away with these kinds of crimes without some form of punishment in the future.