Warning over new ‘crash for cash’ moped delivery driver scam
Warning of new ‘crash for cash’ moped scam: the delivery drivers deliberately crash into oncoming cars…at a cost of £27m to insurers
- In London alone, 2,250 people are said to have fallen victim to the scam
- Fraudsters mainly target drivers in the most affluent areas of North London
- False claims related to the £27 million fraud over the past two years
Drivers are being warned to watch out for a new ‘crash for cash’ scam in which moped delivery drivers deliberately drive into oncoming traffic to get compensation.
In London alone, around 2,250 people are said to have fallen victim to the scam in the past two years, where this type of fraud has become an ‘epidemic’, according to the Insurance Fraud Bureau.
Investigators said almost every UK car insurer has received bogus claims related to the fraud for a total estimated value of £27 million.
Scroll down for footage of a money moped scam crash that took place in London
Warning: Almost every UK car insurer has received false claims related to the moped fraud
Many of the suspected fraudsters are believed to be couriers delivering items such as takeaways and are mainly targeting drivers in the most affluent areas of North London.
The IFB, in conjunction with the City of London Police’s Insurance Fraud Enforcement Department (IFED) and the insurance industry, has issued an appeal to help motorists recognize the warning signs and report evidence to Cheatline.
How the ‘crash for cash’ moped scam works
Unlike traditional crash for cash scams where fraudsters slam on the brakes of their cars in the hope that the victim behind them cannot stop in time, this scam involves mopeds hitting oncoming cars.
The moped swindler hides out of sight in a side road or parking lot, then deliberately drives towards the victim as they approach him.
They then usually throw their moped on the ground and drop to the ground to dramatize an injury, before taking pictures of the incident.
The fraudster sometimes has an accomplice to act as a witness and help facilitate the fraud.
There have also been reports of the accomplice using a van to obscure the victim’s view before the moped rolls into them, making the scam easier to pull off.
“The local population is encouraged to be vigilant for any moped users who seem to linger unnecessarily on the public road,” researchers said.
Who is targeted?
Most of the reported incidents have taken place in North London.
According to ongoing investigations by the IFB and IFED, the moped incidents date back a decade.
However, since 2021 there has been a surge of activity with collisions in London’s most affluent boroughs including Barnet, Brent, Camden, Enfield, Haringey and Hackney, Islington and Kensington and Chelsea.
Crash for cash moped scams have become an epidemic in our capital
Ursula Jallow, director of IFB, said: ‘Crash for cash moped scams have become an epidemic in our capital.
“These dangerous fraudsters run headlong into unsuspecting motorists, terrifying countless victims and leaving insurers with millions of pounds in false claims.”
The case of an accident for moped scams in the capital has now become IFB’s largest-ever investigation.
Mark Allen, head of fraud and financial services at the Association of British Insurers, said: ‘Staged crashes for cash scams pose a dangerous threat to our roads.
“Often highly organized and constantly looking for new targets to exploit, these criminals put lives at risk.
“The industry is determined to do everything possible to protect innocent motorists from this fraud by working together to eradicate this scourge from our roads.”
How can you report this?
If someone believes they are the target of an accident due to moped scams, they should contact local law enforcement if they feel they are in danger and notify their insurer of the incident.
Evidence of the scam should be reported to IFB’s confidential Cheatline service, via a online form or the telephone line, powered by CrimeStoppers, on 0800 422 0421.