Motorists warned of ‘crash for cash’ moped scams

A major insurer is reporting a sharp rise in ‘crash for cash’ fraud cases, which see scooter riders ram the cars of unsuspecting drivers in order to make an insurance claim.

According to Allianz, crime will increase sixty-fold by 2023, with motorists in London being hit hardest.

The worst affected area in the capital was south London, where 42% of reported incidents in the city occurred.

Recently, Wallington, located in the South London borough of Sutton, was such a target that residents created a WhatsApp group in May to share their reports.

Among the members is Ros Karamath. In May last year, the 65-year-old was waiting in her Hyundai i20 at an intersection, intending to turn right onto a major road.

“I was surprised to see that a moped rider had stopped traffic on my right and was waving me across the road,” she told Autocar. “As I checked to make sure the road on my left was clear, a second moped passed him as I was driving away and hit the front wing of my car.

“The cyclist jumped off his bike and immediately started taking pictures of the situation. When we exchanged details, he was very calm and I saw that the other cyclist had left.”

Although Karamath was shocked, she was able to take a photo of the cyclist’s insurance policy and the registration number of his bike, which she said were undamaged.

“When I compare my experience with others in my WhatsApp group, it is clear that I have fallen victim to fraudsters,” she said. “They work in pairs and generally target single female drivers. Some even demand money, but most do it to claim compensation for personal injury.”

She added: “I am very angry.” Karamath said she knows of 20 members of her Wallington group who have fallen victim to the scam, but she believes the fraudsters responsible have now moved on.

“The police say they target one area for a period of time and then, if people learn from it, they move on to something else,” she said.

Matt Crabtree, head of financial crime intelligence and research strategy at Allianz, agrees. “Organized crime gangs have evolved their tactics, so we see them moving around and using small clusters in larger areas to avoid detection,” he said.

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According to the Insurance Fraud Bureau (IFB), 2,250 London drivers fell victim to ‘crash for cash’ cyclists between 2021 and 2023. Many of the suspected fraudsters were couriers.

In a bid to stamp out crime in the capital, the City of London Police says members of the Insurance Fraud Enforcement Department (IFED) are working with Trading Standards officers to identify rogue companies repairing damaged mopeds and scooters.

In June, a joint operation led to the seizure of mopeds believed to have been used in accidents and hundreds of license plates used as disguises for bicycles.

According to police, IFED and its partners are working to establish links between garages suspected of being used by fraudsters and between services and individuals believed to be benefiting from the crimes.

The IFB estimates that the value of the false bike claims is now over £27 million, with thousands of motorists believed to have been unwittingly victimised.

Jon Radford, head of intelligence, investigations and data services at the IFB, said: “These scams are having a devastating impact on innocent road users, so we urge the public to be vigilant. We are working with insurers and the police to bring these reckless fraudsters to justice.”

How to avoid becoming a victim of a ‘crash for cash’

Be vigilant Be aware of unusual driving behavior and use extra caution at intersections.

Document the scene Take photos of the suspected scammer’s motorcycle and your own vehicle.

Get details Note the driver’s details, license plate number and vehicle description.

Collect evidence Look for witnesses and check for CCTV, dashcams and doorbell cameras in the area.

Contact your insurer Inform your insurer and report any suspicions to the Insurance Fraud Bureau Cheatline.

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