Crash for cash fraud ring boosts demand for fleet CCTV

This article is brought to you by Retail Technology Review: Crash for cash fraud ring boosts demand for fleet CCTV.

The rise in crash for cash fraud has boosted demand for commercial vehicle CCTV, according to industry experts, VUE CCTV.

In a recent crash for cash investigation, the last two defendants of a larger fraud ring have been forced to re-pay £243,119 following a hearing at Luton Crown Court on 12 August.

The investigation, which put the fraudsters behind bars, was part of an intense seven year operation that uncovered a criminal syndicate behind one of the largest fraud rings the insurance industry has ever seen in crash for cash scams.

The fraudsters staged road traffic collisions then submitted false insurance claims, and a total of 37 criminals were sentenced over three years.

This fraudulent activity is not uncommon, in a separate incident last week, three men admitted causing a crash on the M57 motorway in a bid to fraudulently claim £150,000 for personal injuries.

The annual cost to the motor industry of crash for cash scams is £392 million - £1million a day - according to the Insurance Fraud Bureau (IFB) and demand for in-vehicle CCTV has risen to record levels as a result.

One vehicle CCTV firm has seen enquiries for fleet vehicle CCTV increase in recent months since more crash for cash scams have been reported.

Glen Mullins, managing director of Manchester-based VUE CCTV, said: "Induced crash for cash accidents are happening on a daily basis and cost the insurance and commercial fleet sectors a huge amount of money.

"Insurers are increasingly looking to technology to challenge this escalating problem and many insurers now insist on CCTV in the fleets they insure.

"This has led to unprecedented levels of demand for in-vehicle CCTV, particularly from large commercial fleet owners who are often seen as easy targets for fraud.

"New technology which records the events leading up to an accident and, crucially, the aftermath of a collision even with the engine switched off can be used as court-admissible evidence. The CCTV systems can not only prove the cause of an accident but also record the speed at impact and how many people were involved."

Crash for cash scammers often take advantage of the assumption the vehicle which runs into the back of another is usually at fault for the collision. Therefore, they engineer crashes by overtaking then excessively braking.

Glen added: "When it is one person's word against another's it is very difficult to prove innocence, even with witness statements.

"Front and rear facing CCTV recording cameras allow insurance companies to challenge fraudulent claims and offer protection for drivers who could otherwise be blamed for non-fault accidents.

"Insurance premiums can only go up as a result of fraudulent claims so any technology that helps in the fight against fraud is good for the commercial fleet sector."