Warning over rise in new ‘clip for cash’ car scam targeting pensioners and young drivers

Motorists are being warned to watch out for a new ‘clip for cash’ scam in which fraudsters have targeted retirees and young drivers.

The new scam is a twist on the “traditional” money scam crash where fraudsters deliberately cause a hit-and-run.

Now scammers are accusing drivers of clipping their wing mirrors before becoming threatening and demanding money in advance.

According to the police, the scams often take place in a residential area. As the victim slowly drives by, the fraudster is parked in his car and throws an object like a rock at the side of the victim’s car to make an impact noise.

The victim is flashed by the fraudster’s car to make them stop, before being charged with cutting off a wing mirror, which was already damaged.

The scammer then demands that the driver hand over cash or pressures him to visit an ATM.

In some cases where the victim refused to hand over money, the perpetrator has become physically intimidating, researchers said.

The warning about the scam was issued by the Insurance Fraud Bureau (IFB) and the Insurance Fraud Enforcement Department (IFED) of the City of London Police, along with several insurers.

Ursula Jallow, director at IFB, said: ‘Clip for cash is an increasing threat to drivers.

“These fraudsters trick innocent motorists into thinking they have done real damage and then use pressure tactics to get victims to hand over money.

‘Because there is still little awareness of this new form of fraud, motorists are therefore more susceptible to falling victim. We urge everyone to look out for the warning signs of these stab mirrors in the door mirrors and report it to Cheatline and Action Fraud.”

The scam was discovered in London in 2021, but the IFB and IFED said they have since seen the clip for cash scam spread to other parts of the UK, including the South West and Wales.

More than 40 incidents are under investigation, according to authorities. But the fear that hundreds more could take place without being reported.

Ursula Jallow, director of the Insurance Fraud Bureau, warned that cons were on the rise across the country and urged people to be aware of the scam

IFED Detective Inspector Philip Corcoran said: ‘Crash for cash scams pose a real safety risk to the public, so it is concerning to see these fraudsters develop their tactics to attack more unsuspecting drivers.

“No one should pressure you to hand over money at the scene of an accident. If you suspect you have been a victim of this scam, please report it to IFB’s Cheatline and to Action Fraud.”

Regardless of whether an actual collision has occurred, money should never be handed over at the scene, police said.

If someone is accused of damaging a wing mirror, insurance details must be exchanged as required by law. In case of acute danger, the police must be called in.

If anyone believes they are being targeted, they should notify their insurer and local law enforcement. They should also report their concerns to IFB’s Cheatline and Action Fraud, the national fraud and cybercrime reporting service.

Ben Neyland, head of anti-fraud at insurer Admiral: ‘Unfortunately, this insidious scam is becoming more and more common. The tactics used by the fraudsters are intimidating and it would be frightening to be attacked by them.

“One way to prevent people from falling prey to the scam is to raise awareness about it.

‘That is why it is important that insurers support the IFB and IFED in the campaign to bring it to the attention. If you suspect you have been targeted by fraudsters using this scam, please let your insurance company know and report it to Cheatline.”

Matthew Stevens, anti-fraud director at Hastings Direct, said: ‘My advice to motorists is never to hand over cash at the side of the road, always report the incident to your insurance company and call the police if the other motorist becomes threatening . .’