Motor fraudsters getting more sophisticated – Keoghs
Motor insurance fraudsters are getting more sophisticated, according to the new annual motor fraud index published by Keoghs, the Insurance Times reports.
This is the seventh fraud index survey produced by the claims related legal services firm and it shows that while the top fraud hotspots remain the same, there are new levels of sophistication amongst fraudsters, who are increasingly aware of the detection methods used by police and insurers.
Birmingham once again tops the fraud top ten, while Manchester is second (previously fourth), east London is now third, Bradford fourth and north London fifth.
The survey also showed that 38% of all claimants were linked to an organised fraud ring, this figure has risen from 23 per cent from four years ago.
Of the claimants linked to fraud rings, 63 per cent were not necessarily grouped by one fraud type, like crash for cash.
Keogh’s director of fraud rings, Ruth Needham said, ‘Organised fraud over the years could be identified by a common element, whether it was a major town or a particular fraud type like staged accidents.’
Ruth continued, ‘Rather than connecting fraudulent claims by the modus operandi, we’re finding the connections can be via multiple elements which vary from claim to claim.’
Keoghs director of counter-fraud services, James Heath added, ‘The way in which fraud is being perpetrated has taken on a new level of sophistication. It is clear that all data linked to a claim needs to be identified and validated to find the crucial part of the jigsaw that shows a claim to be fraudulent. Insurers have made huge advances in their methods of detection, but cannot rest on their laurels, if they are to get ahead and stay ahead, of fraudsters.’