The areas of the UK where motor insurance fraud is most prevalent have been identified in new analysis by the Insurance Fraud Bureau (IFB).
Fraudulent vehicle insurance claims rose 12% last year compared to the previous 12 months, costing the economy more than £1 billion, according to the Association of British Insurers (ABI).
Examples of fraud include so-called ‘crash for cash’ incidents, where fraudsters deliberately cause a collision, then try to blame the driver to claim compensation through their insurance.
Signs include sudden, unexplained braking, being waved out when you do not have right of way, abrupt lane changes on roundabouts, or mopeds/motorbikes cutting into oncoming traffic.
Identity theft is also fuelling fraud, according to the IFB, with criminals stealing personal details online, including through fake job ads and social media, then take out policies or submit bogus claims in that person’s name.
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After analysing 3.3 million vehicle insurance claims, the IFB has identified the top hotspots for scam claims across England, Wales, Scotland and Northern Ireland.
In England, postcode area RM9 in Barking & Dagenham ranked top in a list of 30 hotspots, with Birmingham (B10) second and central London (EC1) third.
For Wales, Cemaes Bay (LL67) was ranked first, with Llanidloes (SY18) and Aberdovey (LL35) placed second and third respectively.
Meanwhile, Scotland’s top motor insurance fraud hotspot was Crieff (PH5), with Glasgow (G23) next on the listing and the Isle of Skye (IV55) third.
Finally, Crumlin (BT29) topped Northern Ireland’s hotspots, with Newcastle (BT33) second and Antrim (BT41) third.
Jon Radford, head of intelligence, investigations and data services at the IFB, says insurance fraudsters are relentless, and their “tactics are evolving fast”.
“By revealing the UK’s top motor insurance fraud hotspots, our aim is to help protect those who are at greater risk,” he added.
“Insurance scams can put people in danger and drive up costs for honest consumers, at a time when many are already under financial pressure.
“We’re working closely with the police and insurers to stop this activity, and we urge the public to stay alert and report suspected insurance fraud to our confidential Cheat Line.”
Roundabout traps featured in England’s top hotspot, Dagenham, with scammers deliberately moving into the wrong lane at busy roundabouts to force a collision.
Sideroad setups were also identified in Birmingham, where fraudsters encourage drivers to pull out of side roads without right of way and then driving into the side of them.
Meanwhile, moped scams were common in London, where the rider drives into oncoming traffic, often with an accomplice to accuse victims of fault.
Other tell-tale signs of a crash for cash can include vehicles with disabled brake lights or pre-existing damage, along with passengers exaggerating injuries and being provided pre-written insurance details after a collision.
Matt Crole-Rees, Confused.com motoring insurance expert, says scams are becoming “more convincing and harder for drivers to spot.”
“Crash for cash scams remain one of the most common types of fraud, where fraudsters deliberately cause accidents and then blame innocent motorists in order to make compensation claims,” he added.
“One of the most common tactics is when a driver suddenly brakes sharply to encourage the car behind to crash into them.
“Other scams include ‘roundabout traps’, where drivers intentionally move into the wrong lane at roundabouts to cause a collision, and ‘sideroad setups’, where fraudsters wave drivers out of a junction before deliberately driving into them.”
To avoid falling victim to a scam, drivers are advised to install a dashcam, as footage can help provide evidence and support insurance claims, and keep a safe distance from other vehicles and stay alert to suspicious driving behaviour.
Drivers should also take photos and videos of the scene after an accident, including damage to all vehicles involved and take the other driver’s details, including their insurer and registration number.
Mark Allen, head of fraud and financial crime at the ABI, said: “The IFB’s latest analysis of the UK’s motor insurance fraud hotspots is a timely reminder that fraudsters are becoming bolder and more sophisticated, and that the industry is responding with even greater resolve.
“Working closely with the IFB, insurers are stepping up intelligence‑sharing and deploying new tools to identify and stop scams before they cause harm.
“We urge the public to stay vigilant and report anything suspicious, because every report helps us protect communities and hold criminals to account.”
Last year, the Association of Fleet Professionals (AFP) put together a nine-point plan for fleet drivers to help minimise the chances of becoming a victim of insurance fraud.
Created by the organisation’s Risk and Compliance Committee, the AFP said the guidance provides a plan that could help to contain premiums in the future.
Motor insurance fraud hotspots
England top 30
1. RM9 (Barking & Dagenham)
2. B10 (Birmingham)
3. EC1 (Central London)
4. B24 (Birmingham)
5. BD7 (Bradford)
6. B8 (Birmingham)
7. BD8 (Bradford)
8. BD9 (Bradford)
9. BD3 (Bradford)
10. B18 (Birmingham)
11. B9 (Birmingham)
12. EN6 (Potters Bar)
13. B11 (Birmingham)
14. B21 (Birmingham)
15. BB9 (Nelson)
16. M12 (Manchester)
17. TS1 (Middlesbrough)
18. B19 (Birmingham)
19. OL8 (Oldham)
20. N18 (Enfield)
21. M8 (Manchester)
22. BD2 (Bradford)
23. B34 (Birmingham)
24. HX1 (Halifax)
25. B28 (Birmingham)
26. B33 (Birmingham)
27. B25 (Birmingham)
28. OL1 (Oldham)
29. B7 (Birmingham)
30. OL4 (Oldham)
Northern Ireland top 10
1. BT29 (Crumlin)
2. BT33 (Newcastle)
3. BT41 (Antrim)
4. BT17 (Dunmurry)
5. BT93 (Enniskillen)
6. BT11 (Belfast)
7. BT12 (Belfast)
8. BT66 (Lurgan)
9. BT14 (Belfast)
10. BT15 (Belfast)
Scotland top 10
1. PH5 (Crieff)
2. G23 (Glasgow)
3. IV55 (Isle of Skye)
4. PH24 (Boat Of Garten)
5. G42 (Glasgow)
6. IV26 (Ullapool)
7. G51 (Glasgow)
8. G40 (Glasgow)
9. G15 (Glasgow)
10. G14 (Glasgow)
Wales top 10
1. LL67 (Cemaes Bay)
2. SY18 (Llanidloes)
3. LL35 (Aberdovey)
4. CF10 (Cardiff)
5. CF24 (Cardiff)
6. LD5 (Llanwrtyd Wells)
7. CF11 (Cardiff)
8. SY24 (Borth)
9. NP19 (Newport)
10. LL36 (Tywyn)
