Insurers bust lb40,000 crash-for-cash scam after black box reveals 'victims' were pals


A lb40,000 crash-for-cash scam has been thwarted by insurers after it revealed the two "victims" knew each other.

The pair of fraudsters designed a huge claim after they crashed into each other in a classic whiplash rear-end shunt in a junction near Nottingham.

But blackbox tracking data found they'd staged the accident to claim thousands on their own Coverbox insurance policies.

The devices used by Coverbox collect driver data and also produce a report in the event of an incident.

This info may then identify trends that could point insurers to suspect or fraudulent claims.

Insurers caught wind from the scheme if this found one of the scammers had links to a well-known fraud network.

And the case was all but closed when the blackbox report revealed the two claimants had visited each other's homes before the crash. And accident data also showed the little hatchbacks didn't actually collide in the alleged way.

The insurer took the situation to the court – in which the fraudsters didn't turn up – and also the judge settled towards Coverbox.

Crash-for-cash scams cost the vehicle insurance industry lb336million pounds every year, according to the Insurance Fraud Bureau.

But insurers are fighting back with blackbox data and we previously revealed how lb250,000-worth of claims were saved.

Howard Collinge, Director at Coverbox, said: "Unfortunately this is not a remote nor unusual case as crash-for-cash scams have been a widespread problem for a long time.

"We endeavour to recognize and stop such instances of fraud, as they result in higher premiums for honest customers and enormous losses to insurers.

"Goal to make auto insurance fairer and cheaper for everyone involved."