Stamping out the rise in motor fraud

Accident Exchange, the UK’s largest prestige accident management company, is successfully identifying and stopping more than 25 cases of attempted motor fraud every week via its unique Asset Protection Unit.

The company, which represents insurers, car manufacturers and dealers, warns of a significant increase in fraudulent activity during the last quarter.

“If it wasn’t a real problem before, it is now,” explained Martin Bramwell, Chief Information Officer for Accident Exchange.

Accident Exchange’s in-house Asset Protection Unit (APU) marries a team of former Police officers and data investigators with the Company’s bespoke fraud detection andavoidance software, FREDA, to identify criminal activity and collate evidence for prosecution.

In 92 percent of cases handled by Accident Exchange since April, the innocent third party insurer is completely unaware of the fraud until they are notified by the APU team.

Bramwell adds: “It’s very easy to see how and why fraudulent claims slip through the insurers net. Whilst we have seen a rise in the headline ‘crash for cash’ Modus Operandi, it is the marked increase in individuals making fraudulent claims which is alarming.”

In May, the Insurance Fraud Bureau, expressed its concern that ‘induced accidents’ – whereby drivers deliberately cause a crash to benefit from the bogus insurance claim – is now a serious national problem. It is estimated to add around £40 a year to honest policyholders

Industry experts estimate that insurance premiums will have risen by at least 10 percent, if not higher, by the end of the year as a result of the fraudulent activities of motorists.

Accident Exchange is the UK’s largest provider of continued mobility and customer support in the event of an accident for prestige vehicles. Services are provided on behalf of insurers, car manufacturers and dealer groups.